Global discount broker TD Waterhouse has launched its online brokerage with commission-free trades u...
Global discount broker TD Waterhouse has launched its online brokerage with commission-free trades until 8 January 2000.
After that period, commissions for online trading of shares will start at £12.95 per transaction.
The group, the world's second largest discount broker, will offer the ability to trade in all UK equities listed on the FTSE 100, 250, 350, small cap and All-Share indices. Each order is automatically sent to four retail service providers to poll the market for the best possible price at the time an order is placed online. Users have a window of 15 seconds in which to accept the price or not.
One of the added features on the site is the use of a free alerting system. This allows the investor to be notified, either by e-mail or an SMS message sent to a mobile phone, on how far a stock has moved, along with the date and time the change occurred.
The site is designed so that at any time users are never more than two clicks away from the ability to trade, according to Bharat Masrani, executive vice president of TD Waterhouse Europe.
He said: "Online investors will be able to track their portfolio at any time by receiving stock information over their mobile phone.
"They can also use the portfolio evaluation service which enables investors to track their account history and trading activity on a dedicated section, which monitors the value of each portfolio."
Market information is regularly updated along with stock quotes, graphs and news.
TD Waterhouse has included a frequent traders club, which requires a minimum of 15 transactions per year.
Benefits of this include a flat commission fee of £14.95 for each purchase and sale up to a value of £100,000. It also includes a freephone number for dealing, price quotations and help.
In the first quarter of 2000, the group plans to add trading in US securities and later developments will include the addition of investment products such as unit trusts and Oeics.
Masrani said: "The timing of this is uncertain at the moment but it is very much a part of our strategy such as our Canadian and US service provides. This is just the start of a long road here to expand our product range."
The group features access to a stocks and shares, maxi and mini, self-select type Isas initially but does plan to offer other Isa products later on.
Investment trusts, because they are traded on the stock exchange, can be accessed through the online service. While not popular trading vehicles on online brokerages such as TD Waterhouse, investment trusts are becoming more popular vehicles and people will start to see the advantages in the ability to trade them on a retail electronic platform, Masrani added.
Investors who use the site are given nominee accounts and money is held in a cash management account. Upon sale of shares, the proceeds from the transaction are automatically credited to the account as cleared funds following settlement. The settlement times for the service are transaction plus five days (T+5).
Online applications for the service can be found at www.tdwaterhouse.co.uk.
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