Monday, April 19, 2010

ING's Sharebuilder Eliminates Large Order Surcharge.

Effective April 15th, ING has removed their "Large Order Surcharge" on trades through Sharebuilder.

I just got the email last week and my first thought was, "What the hell is the large order surcharge and how does this affect me?"

Well, it doesn't affect me, but it may affect you, so here goes...

The large order surcharge was applied to orders of over 1,000 shares. It was $0.025 for each share traded, over 1,000 shares and capped at 2.5% of the principal amount of the trade.

That's the good news. The bad news is that they're adding a fee. Specifically a low-priced security surcharge. Here's how that breaks down:

  • The Low-Priced Security Surcharge applies to all stocks and ETFs executed at a price below $1.00 per share.



  • The charge will be $0.007 per share.



  • It is capped at 15% of the total principal amount for real-time trades, but no less than the base commission.


So, basically if you're a high volume trader of securities other than penny stocks, you got a bonus. If you're like me, and don't trade more than 1,000 shares at a time and stay away from penny stocks, then there's no change.

I've been a account holder of Sharebuilder since before it was owned by the ING group and I've been very pleased with their service and quality throughout my time as a customer. I am also not compensated in any way by ING.

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