Zero Commission Era Has Arrived, Is It Really That Good?
Last week, something interesting happened: Interactive Brokers and then Schwab announced zero commission stock and ETF trades. This led to many other firms like TD Ameritrade, ETrade and Ally to follow suit. By now, other than Fidelity and Vanguard, all major brokerages have offered some form of unlimited commission free stock and ETF trades. So it does seem that the era of unlimited commission free stock and ETFs trade has arrived.
On the surface, this seems to be an exciting news. But is it really that good?
Of course, unlimited zero stock commission is not new. The most representative one before the news last week was Robin Hood, a firm that tries to cater millennial investors by offering zero commission. Merrill Edge offers 100 free stock and ETF trades a month to its platinum tier customers. JP Morgan’s new youinvest also offers some forms of large free commission trades.
Please login or register an account to view the newsletter