Dear Valued Mastertrader.com Trader,

Changes in routing options and pricing are happening almost every month. During the next few months these changes will accelerate.

Some changes are occurring as of August 1, 2006. To see how these changes might affect you, we ask that you visit our website and review the following two sections:

The first section is the “Fees - Order Routes” section located on our web site at: http://www.mastertrader.com/fees/routes.asp.

You will notice that we have simplified our ECN pricing, no longer splitting out charges to the one-hundredth of a penny, and added more market maker routes such as Lehman (LEHM), Citigroup (CITI) and Auto (ATD) at prices that may save you money over routing choices that you currently make.

With these additions, we believe that our offering of order routes is among the broadest in the industry.

The second section is the “Fees – Software” section located on our web site at: http://www.mastertrader.com/fees/software.asp.

Recent changes in Exchange pricing, such as now passing through the costs of the ASE, NYS, OPRA, PHLX, S&P Index and DJI Indices to the end user, have required Mastertrader to change its charges for exchange data too.

Going forward, Mastertrader will reduce the charge for RealTick from $265 per month to $250 per month. The above exchanges plus NASDAQ will be packaged together in the “RealTick Standard Exchange Package” for a cost of $25 per month. The “RealTick Standard Exchange Package” charges will be independent of whether you do the required 25 or 50 trades per month to have the software fee reduced or waived. Meeting the 25 or 50 trades per month threshold will not waive the monthly “RealTick Standard Exchange Package” charge.

The software fee for MTDirect Pro will be reduced from $55 to $40 per month. The NYSE, AMEX and NASDAQ will be packaged together in the MTDirect Pro “Standard Exchange Package” for a cost of $20 per month and will be waived with the standard 15 trades per month.

Mastertrader realizes that changes are occurring faster than most of our customers can keep track of and ask that you email support@mastertrader.com or call 800-424-3934 with any questions.

Sincerely,

Mastertrader.com
7-11 South Broadway, Suite 210A
White Plains, NY 10601

The risk of loss in electronic trading can be substantial. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. System access and trade executions may be delayed or fail due to market volatility, system failure, high volume or other factors. To read important disclosures, click on the following four links Day Trading Risk Disclosure, Margin Disclosure, Futures Risk Disclosure and the Characteristics and Risks of Standardized Options.