<div><p>NEW YORK (Reuters) - E*Trade Financial Corp <ETFC.O> will cut trading fees for low-volume customers, the U.S. online brokers said on Friday, making its move in a pricing war that erupted among rivals in recent weeks.</p><p>The company said all customers will pay $9.99 or less for a stock or options trade, down from $12.99, starting on Monday. Options trades have an additional 75 cent fee. Highly-active traders will still pay $7.99 per trade, E*Trade said.</p><p>The broker will also eliminate annual IRA account fees, and commissions for larger trades. In the second quarter, it will drop all account service fees.</p><p>The move, announced late on Friday, comes days after mutual fund giant Fidelity Investments said it planned sharp price reductions and about a month after Charles Schwab Corp <SCHW.O>, the biggest online brokerage, announced a cut of about $4 per trade.</p><p>E*Trade, which has reported a string of quarterly losses due to bad bets in the mortgage market, said the move is meant to streamline pricing by eliminating its tier-based structure. It "increases simplicity, value, and transparency for current and prospective customers," E*Trade said in a statement.</p><p>Analysts mostly expected the move, which amplifies the industry's recent shift toward flatter fee plans that could play into the hands of smaller investors.</p><p>The recent price cuts come as individual investors face uncertain markets, and reflect a battle for market share as online brokers struggle with low trading volumes and interest rates.</p><p>Fidelity plans to charge $7.95 per equity trade, down from a previous tiered fee structure of $8 to $19.95, while Schwab began last month began charging $8.95.</p><p>E*Trade's move leaves TD Ameritrade Holding Corp <AMTD.O>, the second-biggest U.S. online brokerage, as a notable exception to recent cuts. TD Ameritrade Chief Executive, Fred Tomczyk, said on Thursday it does not plan to cut fees because rivals came down to its price of $9.99 per trade.</p><p>E*Trade shares slipped a penny to $1.45 on the Nasdaq after the close of markets.</p><p>(Reporting by Jonathan Spicer; editing by Andre Grenon, Leslie Gevirtz)</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68535358&bid=informcom" /></div><div id="copyright"><div>

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