Bank Of America Brokerage Rating And Information
Banc of America Investment Services Commissions
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Market:
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$0-$14.00
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Limit:
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$0-$14.00
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Options:
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$19.95 + $1.50 per contract
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Rate this Broker
Bank of America Brokerage, also known as
Banc of America Investment Services, has attempted to revamp its image offering commission-free stock trades. However, despite their heavy-handed media and online promotional campaign, the conditions required to get free trades are so onerous that they appear to be little more than a marketing ploy.
Bank of America Brokerage Services
Banc of America Investment Services offers up to 30 free trades per month to investors who meet their requirements. However, the requirements are almost comical. In order to receive free trades, one must maintain a minimum balance of $25,000 in BOFA
deposit accounts, such as checking, savings, and CDs. That's right, your brokerage account balance
does not count. Considering that Bank of America's rates for deposit accounts are abysmal, the cost in lost interest returns of maintaining such a high balance in their bank accounts will likely wipe out any potential savings from commissions.
Private Banking customers receive the free trades automatically. However, private banking is typically reserved only for the wealthiest clients.
Checking account holders who don't meet the $25,000 balance requirement are charged $10.00 per trade. If you don't maintain any Bank of America deposit accounts, trades cost $14.
Further, Banc of America Investment services charges a veritable smorgasbord of "miscellaneous fees," all of which are quite high compared to other discount brokerages. Broker assisted trades are $42.50, and if you do not maintain at least one Bank of America deposit account, you will be slapped with $50 semi-annual maintenance fees.
Bank of America Brokerage Reviews in the Media
Media coverage of Banc of America Investment Services has been thin. Most comments have been limited to a discussion of their high fees and the high requirements for their heavily-advertised "free" trades.
Downsides to consider
There's not much else to say beyond what's been said above. Bank of America has long held a reputation for poor service and lots of hidden fees for its banking services. It appears that Bank of America Brokerage carries on that tradition.
Bottom Line
If you're interested in free online stock trades, sign up with
Zecco.com. You can get free stock trading there without all the restrictions, fine print, and hidden fees. Only a $2,500 balance is required (in your
brokerage account, not deposit accounts with lousy returns).
User Rating
Latest User Review for Bank of America Brokerage
Notable Features
Free trades if you have $25,000 in deposit accounts.
Investments Available
Stock trading, options, bonds, mutual fund investing.
Alternate Spellings
BOFA Brokerage,
Banc of America Investment Services
Based on 5 votes.
Bank of America has proven it should be a market leader to me. They offer great service and exceptional response to questions about my account whenever I ask. They are prompt, courteous, and thorough in their explanations - even to a novice investor like me. My rep even contacted me the other day to explain how I might be earning a better return on my investments if I connected some of my other Bank of America accounts to my investment account. A significant increase in my returns and no transfer charges. Great customer service in my book!