The nation's largest mutual fund company has done it again.

Fidelity Investments announced yesterday that it has decided to halve the per contract charge on options trading for all tiers--Gold, Silver and Bronze--to 75 cents.

On a trade of 10 option contracts, for example, Gold clients could save upwards of 33%, Silver clients enjoy a 51% cut, and Bronze clients earn a 42% savings.

Fidelity has also lowered the base commissions for retail online options trades to $10.95 for Silver member customers and to $19.95 for Bronze member customers. The commission schedule for Gold level customers will remain at $8.

All of the cuts are effective immediately and signal yet another salvo in an industry-wide fee war that began 20 months ago.

"These reductions are massive," Jeff Carney, president of Fidelity Personal Investments told Reuters news service. "We don't make moves like this without making sure they'll make us the most competitive."

As of March 31, Fidelity had $1.1 trillion in assets under management.

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