Some brokers offer you free cash to transfer your brokerage to them, E*Trade  is just offering up 500 free trades. You can see the offer on this page , where they explain you can trade free for 60 days if you open a new Power E*Trade Account with at least $2,000. The offer is for 500 free trades in stock or options trades made within the first 60 days of the funds clearing and accounts must be funded within 60 days of account opening. Afterwards, you pay regular commissions.
How valuable are 500 trades? Well if you use them all, the rate is $9.99 for the first 149, then $7.99 for the rest for a grand total of $4,293 saved. If you make 500 trades in 60 days, this is a screaming hot deal. If you don’t, as I suspect most people don’t, this offer is only as good as often as you think you’ll use it.
Some more specifics:
- You pay for the trade commissions when the trade is executed and the commissions will be refunded in 8 weeks.
- Funds must remain in your account for at least six months, or you will forfeit the bonus.
- Offer expires December 31, 2010.
- It does not appear that the promotion is taxed in any way.
If you aren’t sure how good this offer is, check how many trades you’ve made in the last 60 days. If you haven’t made any, skip on this offer unless you’ve been waiting for one to open an E*Trade account. If you’ve made 500+, kudos to you, this is a smoking deal and a way to save on whatever you pay for trades.