Wells Fargo’s Free Trade Offer
In June 2005, Wells Fargo reduced its online brokerage commissions for clients with Portfolio Management Accounts (PMA). The announced rates then were as follows :
Clients with combined accounts with total balances of $25,000 or more — will pay reduced fees or $9.95 for no-load mutual fund trades and online stock trades. Customers with PMA balances from $100,000 to $249,999 will see the fees drop to $2.95 per trade, and those with PMA balances over $250,000 will trade commission-free.
Today, I learnt that Wells Fargo has improved its offering to make it even more attractive. The new offering is as follows :
Now when you link your WellsTrade® brokerage account to your Wells Fargo®PMA® Package, you’ll get 100 commission-free online trades a year. Use your commission-free trades for stocks, exchange-traded funds, and even no-load mutual funds.1
Just link your WellsTrade account to a PMA Package – our premier offering for investment and banking customers. To qualify for a PMA Package, all you need is $25,000 in brokerage, loan balances or deposits. 2
The best part is, unlike the Bank of America free trade offer, the qualification for free trade is much easier to meet:
Wells Fargo accounts used for balance qualification include checking, savings, time accounts (CDs), retirement (IRAs), brokerage, trust (excluding irrevocable trusts), loans, outstanding credit cards and line of credit balances, and 10% of outstanding mortgage balance (certain mortgages not eligible).
The current Bank of America offer requires a client to keep $25,000 in one of their low-rate savings or checking account, making that deal no deal at all (unless you can get into one of the affiliated high rate savings account).
Diehards forum discussion here. Mutual fund forum discussion here. Fatwallet finance forum discussion here.
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