Commission-Free Trades: Top 5 Brokers

Read my last blog post...

You'll get answers to these questions...

  1. Do you really think the firms aren't making money on your trades?

  2. They sell your orders, did you know that?

  3. Do you think you would win more if you went to Las Vegas and didn't tip the dealer?

  4. Imagine if you had a system for your trading so it made it almost impossible to lose money?

  5. Would you want that system?

  6. How much would you pay for that system? Click here to read that blog post

Top 5 Brokers with $0 Zero Commissions

Robinhood

The first commission free broker allows you to Invest in stocks, ETFs, options, and cryptocurrencies, all commission-free, right from your phone or desktop.

Charles Schwab

Peter Crawford, Schwab’s chief financial officer, acknowledged in a statement that the elimination of trading commissions had been pretty much inevitable.“We are seeing new firms trying to enter our market — using zero- or low-equity commissions as a lever,” Mr. Crawford said. “We’re not feeling competitive pressure from these firms … yet. But we don’t want to fall into the trap that a myriad of other firms in a variety of industries have fallen into and wait too long to respond to new entrants.” The commission-free trading structure will go into effect Monday 10/7/2019 for accounts of all sizes, wiping out Schwab’s $4.95-per-trade charge.

What does this really mean?

Firms must stay competitive and they MUST move fast so they don't lose customers. Losing customers means losing assets.

Firms that forgo fees can make money in other ways, Mr. Bryan said. For example, the cash in your brokerage account — money you haven’t yet invested — may be pushed into the firm’s money market account during hours when the market is closed. While you do earn interest as a result, it’s below the market rate, and the firm pockets the difference.

The new plan will cost Schwab roughly 3 to 4 percent of its total net revenue — perhaps $100 million each quarter. But the firm noted that its “commissions per revenue trade” have been falling for several years, which may have given Schwab the confidence to become the first major firm to eliminate commissions across the board.

Schwab’s move follows Interactive Brokers Group’s announcement last week of IBKR Lite, a service that will offer unlimited commission-free trading on domestic stocks and exchange-traded funds. (E.T.F.s are similar to index funds but trade like stocks on an exchange, meaning investors must pay commissions whenever they buy or sell shares, which also carry underlying investment fees.)

IBKR Lite is the hassle-free way for clients in the US and India to trade.

We offer unlimited, commission-free trading on US exchange-listed stocks and ETFs, as well as low cost access to global markets without required account minimums or inactivity fees.


TD Ameritrade

Announcing $0 commissions on online stock, ETF and option trades**. Get our best-in-class platforms, award-winning service & education and extensive branch network, now with commission-free trading.

E*TRADE announced it will eliminate retail commissions for online US listed stock, ETF, and options trades. It will also reduce the options contract charge to $0.65 per contract for all traders while maintaining its active trader pricing at $0.50 per contract. These changes will take effect on October 7, 2019.

“E*TRADE customers benefit from working with the best online broker in the industry, defined by the number one options trading platform, intuitive and easy-to-use online and mobile tools, with exceptional service from financial professionals 24/7,” said Mike Pizzi, Chief Executive Officer. “With this new commission schedule we are further raising the bar, delivering an unrivaled experience at price points that cannot be beat—main street investors will now trade the stocks and ETFs of their choice for $0, while our most active derivative traders will continue to enjoy our industry-leading contract rate, which when combined with the $0 base rate, our first-class derivatives platform, and world class active trader service team, results in an unparalleled value proposition.”The Company estimates that the revenue impact of the commission changes on Q2 2019 operating results would have been approximately $75 million.

Thanks for reading hoping you have better idea of why this historic event happened.

Keep it profitable,

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