Author Topic: $0 stock trading commissions  (Read 1756 times)

Montecarlo

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$0 stock trading commissions
« on: September 28, 2019, 09:55:43 PM »
Offered by Interactive Brokers

Car Jack

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Re: $0 stock trading commissions
« Reply #1 on: October 02, 2019, 08:21:09 AM »
And now Schwab and TDAmeritrade.

Buffaloski Boris

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Re: $0 stock trading commissions
« Reply #2 on: October 02, 2019, 09:49:34 AM »
...hopefully to expand to other brokers.

This is great as it allows those of us who arenít so keen on index funds to in effect build our own indexes/ portfolios on the cheap.

Chris Pascale

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Re: $0 stock trading commissions
« Reply #3 on: October 02, 2019, 11:20:30 AM »
Saw this on Ameritrade today, too.

Travis

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Re: $0 stock trading commissions
« Reply #4 on: October 02, 2019, 03:04:00 PM »
...hopefully to expand to other brokers.

This is great as it allows those of us who arenít so keen on index funds to in effect build our own indexes/ portfolios on the cheap.

Yeah, but that gives indexers one less expense to rub in the face of day traders.

Montecarlo

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Re: $0 stock trading commissions
« Reply #5 on: October 02, 2019, 06:30:53 PM »
I'm with e-trade for half my portfolio.  If they don't join the bandwagon before the end of the year I'm transferring.  I got some losers to loss-harvest.

bwall

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Re: $0 stock trading commissions
« Reply #6 on: October 03, 2019, 06:00:47 AM »
I think that they are able to offer this service by selling the trade input data to others, thereby allowing them to front run trades.

Be sure and always use limit orders, preferably below market price when the order is placed.

Stimpy

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Re: $0 stock trading commissions
« Reply #7 on: October 03, 2019, 12:30:49 PM »
...hopefully to expand to other brokers.

This is great as it allows those of us who aren’t so keen on index funds to in effect build our own indexes/ portfolios on the cheap.

Yeah, but that gives indexers one less expense to rub in the face of day traders.

Does it?  Robinhood has had this since day 1...  Still gets rubbed in many a faces I am aware of.  I suspect it will die down (more), but maybe never truly go away.

As for not being keen on index funds, I can't see a reason not to be.  Beyond that Moral investment thing but that's a whole other box of worms!   Granted I am not saying sell all your stocks and go index now!  Nor would I.  But I see indexing as a great alternative for anyone not really wanting to learn much about stock investing, but still be able to invest.   Hence why I always recommend indexing to friends and family!

Lets all go celebrate these zero commissions and buy a good quality stock (or index)!

BDWW

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Re: $0 stock trading commissions
« Reply #8 on: October 03, 2019, 12:43:28 PM »
I'm with e-trade for half my portfolio.  If they don't join the bandwagon before the end of the year I'm transferring.  I got some losers to loss-harvest.

Saw a notification when a logged in this morning about $0 dollar trades.  Of course I've noticed some(most?) ETFs have been commission free for awhile now.

edit: https://www.investopedia.com/e-trade-also-drops-commissions-to-usd0-4772135
« Last Edit: October 03, 2019, 12:50:08 PM by BDWW »

Montecarlo

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Re: $0 stock trading commissions
« Reply #9 on: October 03, 2019, 04:45:19 PM »
I made a post a long while back about tax loss harvesting.  There were some errors in the initial post, but zero commissions makes the strategy a lot more attractive, especially for non-millionaires

Cadman

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Re: $0 stock trading commissions
« Reply #10 on: October 16, 2019, 02:59:05 PM »
FYI Ally (who bought out TradeKing) also went commission free as of last week. Seems like it's catching on!

bacchi

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Re: $0 stock trading commissions
« Reply #11 on: October 16, 2019, 03:15:49 PM »
Ok, that's good, but what's their profit? No one gives anything for free, that's a rule that I have learned a long time ago.

Loaning shares, margin fees, cash deposits, and payment for order flow. And as a loss leader.

Buffaloski Boris

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Re: $0 stock trading commissions
« Reply #12 on: October 17, 2019, 07:52:23 PM »
Charles Schwab to allow trading fractional shares similar to M1

https://finance.yahoo.com/news/brokerage-giant-charles-schwab-allow-181122881.html

Car Jack

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Re: $0 stock trading commissions
« Reply #13 on: October 18, 2019, 07:11:23 AM »
Ok, that's good, but what's their profit? No one gives anything for free, that's a rule that I have learned a long time ago.

Do you have a bank or credit union account that pays you interest?  Well, there ya go.  Wall Street has been charging fees because they can because everyone has been.  Now, that's blown out of the water.  This, of course follows Fidelity's Zero funds (and the much less known SALT funds that have negative ERs....yes, they pay YOU to put your money in through them....although they say it's temporary). 

Brokerages make plenty of money without a lot of their fees.  I have nobody calling me up from Fidelity to try to move my low cost index investments to high priced, actively managed funds, even though they know who I am when I've walked into an office to get some help on a form.  "Oh, you're the indexing guy".  Yup, I'm the indexing guy with well over a million dollars of non managed, low or zero cost investments.

Jack Bogle:  "You get what you don't pay for".  I live that.  My average ER over my entire portfolio (as of this morning) is 0.0196%.  If I include my US Savings bonds, it's 0.0168%.  And there is room to reduce those numbers.