“In its second price cut in four months, Charles Schwab Corp. yesterday unveiled a new fee menu that lowers its base commission for Internet stock trades by a third,” writes Gaston Ceron in today’s Wall Street Journal.

“The new pricing — which is effective Nov. 1 and comes on the heels of cuts by other discount brokerage firms — will bring down the commission for Schwab clients’ online orders to $19.95 from $29.95. The base rate applies to orders to buy and sell up to 1,000 shares; an additional per-share fee of 1½ cents will be levied on shares beyond the threshold.”

“San Francisco-based Schwab will also make it easier for clients to qualify for a lower per-trade rate of $9.95 that the company announced in May and made effective in June.”

“Previously, individual-investor customers needed more than $1 million in assets at Schwab to qualify for the $9.95 rate, but now they can also get it if they make 30 or more stock or options trades a quarter, regardless of assets held at Schwab.”

“The company also made other pricing changes, such as reducing prices on options trades and on stock trades made through an automated telephone service. Options-trading fees were also lowered for clients of independent investment advisers who work through Schwab.”

“Schwab’s rivals have also been cutting their prices. TD Waterhouse Group recently set a new flat rate of $9.95 for online traders who make 30 or more trades in a rolling 90-day period or who have at least $500,000 in assets of combined accounts. Fidelity Investments this year started offering its best customers a flat stock-trading fee of $8 for online orders. Other firms that have cut fees recently include Harrisdirect, a unit of BMO Financial Group, and E*Trade Financial Corp.”