USAA Brokerage 50 Free Trades Promotion

I heard about USAA’s banking and insurance services many times in the past, but didn’t know it also has a brokerage unit until it was recognized in 2010 SmartMoney broker survey as the best broker in the Commissions & Fees category early this year. Even after that, I didn’t pay much attention to it because, unlike many other discount brokers which pretty much everybody can use, USAA brokerage service is only available to those who are eligible to become a USAA member, i.e., active military, veterans, spouse of USAA members, and individuals whose parents are/were USAA members, etc. Therefore, even though USAA offers many excellent services, most of us are not able to enjoy them because of the membership restriction.

Anyway, if you are eligible, USAA brokerage service may be a nice alternative to other brokerage services, especially if you trade a lot, even though it may not be the best choice from purely the cost perspective. USAA broker has two-tier commission structure. For regular membership (Gold membership), the standard commission for stock trades is $8.95, plus additional $0.75/contract for options trades. That’s hardly cheap in my opinion. If you are active traders and trade 25 times or more  in a rolling 90 day period or 16 time or more trades in a rolling 90 day period and have $50,000 or more in eligible assets, then you are eligible for a Platinum membership, which will reduce your trading cost to $5.95 per trade for stocks, plus $0.75/contract for options. Those are just base commissions. If your order is large, you may need to pay extra fees. Particularly, an additional $.005 and $.01 per share is charged for each share over 1000 for Platinum and Gold member, respectively.

Honestly, I don’t know exactly why SmartMoney chose USAA for the best in Commissions & Fees because there are many discount brokers out there that charge a flat fee for a trade order, regardless the number of shares.

Well, if you are using other services of USAA and considering a brokerage account with them as well, then there is currently a promotion that can save you some money on commission. The promotion will give you 50 commission free trade if you open an account before June 30, 2011. Details of this promotion are

Free trade offer expires June 30, 2011. Offer not eligible for transaction fee mutual funds. Free trades limited to domestic, NYSE, AMEX or NASDAQ-listed securities, up to 1000 shares placed on the Internet or self-service telephone system. After 25 free trades or 60 days, whichever comes first, account will revert to gold or platinum fee schedule, depending on asset and activity levels. Offer limited to one account per person. Valid for U.S. citizens or permanent residents. Void where prohibited. Offer may be modified or terminated without notice prior to application and is not valid with any other offers. Other restrictions may apply. Commissions may change without notice.

Check it out if you are interested.

Related posts:

1. Scottrade Promotion: Get Three Commission Free Trades
2. SogoTrade 100 Commission Free Trades Promotion
3. OptionsHouse Promotion Code for 100 Free Trades
4. ShareBuilder Educational Account Promotion: 3 Free Trades
5. Firstrade 100 Commission Free Trades Promotion

Original Post on The Sun’s Financial Diary

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USAA Brokerage 50 Free Trades Promotion

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