Fidelity Offers Flat $25 Online Trading Rate for Active Traders

Business Wire, May 8, 1997

BOSTON--(BUSINESS WIRE)--May 8, 1997--

Available through www.fidelity.com and Fidelity On-line Xpress

Spartan Brokerage Services, the deep discount arm of Fidelity Investments, today announced a flat commission rate of $25 for active traders who trade stocks online through the Web or through Fidelity On-line Xpress . Unlike some other flat rate services, Fidelity does not charge active traders for representative assistance or additional customer services.

Active traders will pay a flat fee of $25 for up to 1,000 shares. Trades from 1,001-4,999 shares are $25, plus $.03 for each share over 1,000; trades over 5,000 shares are $25, plus $.02 a share for each share over 1,000. For stocks trading below $1, traders will pay 3 percent of principal with a minimum commission of $25. Spartan Active Trader pricing is exclusive to Fidelity brokerage customers who trade at least 36 times per year and maintain a minimum balance of $20,000.

"We're committed to providing our active traders with commission savings, superior service and easier access to timely information," said Robert Mazzarella, president of Fidelity Brokerage Services. "Our ability to provide this new pricing service helps meet the needs of very active and sophisticated investors and is another example of how Fidelity delivers value."

The new commission discount is part of Spartan Brokerage Services year-long campaign to highlight a new product or service each month. Recent active trader account enhancements include access to IPOs and other public offerings, and the benefits of cash management features coupled with deep-discount Spartan Active Trader pricing. Spartan also offers some of the lowest margin rates in the industry.

"The significant changes that we have made to our Spartan Service provide our customers with the products and services they demand to help them successfully trade and manage their portfolios," Mazzarella continued. "We believe that the new commission savings we are providing are another reason for active traders to consolidate their assets with Fidelity."

In the coming months, Fidelity will announce additional products and services, including enhanced online trading capabilities, access to a broader range of research and statement and reporting improvements.

Fidelity Investments is the nation's largest mutual fund company and one of the leading providers of financial services. Fidelity offers investment management, retirement, brokerage and shareholder services directly to individuals and institutions and through financial intermediaries. The firm also is the No. 1 provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans. At March 31, 1997, Fidelity had total managed assets of $498.1 billion.

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Fidelity Brokerage Services, Inc. Member NYSE, SIPC.

CONTACT: Fidelity Investments

Corporate Communications, 617/563-5800