Is this a scam?
BOA is going to pull business from the discount brokerages but I don’t think it will have any affect on the HNW investors or the big clientele at the wires. These people stay with their advisors for a reason. They don’t need to worry about saving 7 bones on a trade.
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The guy who thinks he is a day trader is going to pull his account.The question is what percent of these day trader wannabes will stay loyal to TD, etc, and who is going to price wh0re over to BOA?
That shows you how good the spread is on a bank account! For free trades you have to have only $25k in the BANK (brokerage assets don’t count)
Have a guy that has 1.2 mil w/me, keeps 225k @ scottrade to "play" with. People want someone to handle their "real" money.
[quote=beramberger]Is this a scam?[/quote]
No, it's a loss leader. They want to attract people with "free trades" and then sell them other BOA services.
It's not all that bad of a deal. Those with > $25m in assets the month before get 30 free trades per month. $50 semi-annual charges still apply.
The sad thing is that even with dangling the “free trade” carrot, people are
not going to flock there in droves. Maybe some existing customers will take
advantage of it, but all they are going to do is steal aways some Schwab/
Ameritrade customers… Who wants them anyway.