Online Broker TradeKing Announces Lower Pricing to Help Options Traders Save Money

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Online broker TradeKing (www.tradeking.com) today announced a reduction to its options commission price. Striving to save option traders money, TradeKing will automatically reduce the price for trades with more than eight option contracts. Under TradeKing’s new price, clients who trade more than eight contracts per trade will be charged just 15 cents per contract plus an $8.95 base. Clients who trade eight or fewer contracts per trade will continue to pay the same low price of 65 cents per contract plus a $4.95 base. TradeKing will automatically charge clients the cheaper of the two rates. Stock trades at TradeKing will remain just $4.95 per trade, no matter how many shares are traded. As always, there is no additional cost for broker-assisted trades at TradeKing.

“Since our founding, TradeKing has been a vocal proponent and industry leader for fair and simple pricing that helps investors make the most of their investment dollars”

With TradeKing’s new pricing, higher volume options traders can save significantly over competitor’s fees. For example:

Commission Comparison: Single-Leg Option Trade of 50 Contracts*
Broker		Commission
TradeKing		$16.45
Fidelity		$45.45
Schwab		$46.45
TD Ameritrade		$47.49
E*Trade		$47.49
Scottrade		$69.50
OptionsXpress		$75.00

Furthermore, TradeKing is providing additional cost savings for option traders. Spread traders and other multi-leg option traders will now pay only one base charge per trade⁺. Whether it's a 2-, 3- or 4-leg spread, straddle, butterfly, or condor, TradeKing clients pay just one base charge for the entire trade. Additionally, options traders carrying single-leg short options valued at five cents or less can buy to close those positions commission-free**. Visit www.tradeking.com/fees to learn more.

“Since our founding, TradeKing has been a vocal proponent and industry leader for fair and simple pricing that helps investors make the most of their investment dollars,” said Don Montanaro, Chairman and CEO of TradeKing. “In recent months, we’ve seen many clients increase their options trading as a way to navigate volatile market conditions. We know lower commission costs can go a long way towards improving a trader’s bottom line and believe our new pricing will give options traders just one more reason to love trading with TradeKing.”

Example of Old vs. New Option Prices: 10-Contract Bull Call Spread

Old price was $22.90:
$4.95 base charge for each leg in a spread x 2 legs = $9.90
+ 10 contracts per leg x 2 legs x $0.65 for each options contract = $13.00

New price is $11.95 (48% savings):
$8.95 base charge covers all option legs
+ 10 contracts per leg x 2 legs x $0.15 for each options contract = $3.00

About TradeKing

TradeKing (http://www.tradeking.com) is a nationally licensed online stock and options broker offering simple, low cost online trading fees ($4.95 per trade plus $.65 per option contract, $8.95 per trade plus $.15 per option contract for more than eight contracts) with no hidden costs or account minimums.¹ A pioneer in integrating new financial social media as part of its innovative online equities, options trading and fixed-income trading platform, TradeKing has received multiple discount broker awards from top industry sources and was rated best in customer service by SmartMoney² Magazine, ahead of OptionsXpress, Scottrade, Fidelity, and TD Ameritrade. (June 2010 SmartMoney Broker Survey).

Follow TradeKing on Twitter at http://twitter.com/TradeKing,
Facebook at http://www.facebook.com/tradeking,
YouTube at http://www.youtube.com/tradeking,
LinkedIn at http://www.linkedin.com/company/tradeking.

Options involve risk and are not suitable for all investors. For more information, please review the Characteristics and Risks of Standard Options brochure available at www.tradeking.com/ODD before you begin trading options. Options investors may lose the entire amount of their investment in a relatively short period of time.

TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. The content of this press release is provided for educational and informational purposes only, does not constitute a recommendation to enter in any of the securities transactions or to engage in any of the investment strategies presented herein, and does not represent the opinions of TradeKing or its employees.

Online trading has inherent risks due to system response and access times that vary due to market conditions, system performance and other factors. An investor should understand these and additional risks before trading.

*Commissions and fees from published web sites as of 02/18/11. Some brokers may offer more competitive fees than the ones published if certain balances or level of activity are met. Please contact each broker individually to confirm their commission schedule. GTC orders: Partial executions received on different trading days will be charged separate commissions.

+ Multi-leg base charge applies to option-only trades. For option trades involving a stock position, the stock trade is charged separately.

^**Commission-free buy to close offer does not apply to multi-leg trades.

Multiple leg options strategies involve additional risks and multiple commissions, and may result in complex tax treatments. Please consult a tax professional prior to implementing these strategies.

Member FINRA/SIPC.

(1) $4.95 for equity and option trades, add 65 cents per option contract. Trade more than 8 contracts, and we'll automatically lower your cost to $8.95 per trade plus 15 cents per contract. TradeKing charges an additional $0.35 per contract on certain index products where the exchange charges fees. TradeKing adds $0.01 per share on the entire order for stocks priced less than $1.00. See www.tradeking.com/fees for details on commissions on low-priced stocks, option spreads, and other securities.

(2) TradeKing was ranked #1 in Customer Service in the SmartMoney June 2010 Broker Survey based on the following categories: Mutual Funds & Investment Products, Banking Services, Trading Tools, Research, and Customer Service. SmartMoney is a registered trademark of SmartMoney, a joint publishing venture between Dow Jones & Company, Inc. and Hearst Partnership. Supporting documentation for any claims, comparison, statistics, or other technical data, will be supplied upon request by calling 877-495-5464 or via email at service@tradeking.com.

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