Wells Fargo to offer more free trades

Wells Fargo has announced that it will offer qualifying customers 100 commission-free online trades through its WellsTrade online brokerage, making it the latest big bank to undercut online stock brokers.

The San Francisco-based bank will waive online trading fees for customers who have a combined $25,000 in deposits or loans with them.

For customers with a mortgage with Wells Fargo, only 10 per cent of the balance can apply towards this requirement.

"We're thrilled to offer our customers the best free trade program in the industry," said Rachel Perkel, a senior vice president with Wells Fargo investments.

The initiative follows on from the recent introduction of a similar package by the Charlotte, North Carolina-based Bank of America.

Both banks are relinquishing some of their brokerage revenue with an aim of attracting more low cost borrowing and encouraging more borrowing.

With the lower threshold, approximately 2.5 of the bank's customers will be eligible for free online trade

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