Month: October 2019

Commission-Free Trades and What It All Means

On October 1, Charles Schwab & Co. surprised the world by announcing that it would eliminate commissions for online trading of U.S. stocks, exchange-traded funds, and options trading. Trading costs were previously $4.95 and went to zero on October 7th. Company Chairman and Founder, Charles Schwab announced on CNBC, “We have a great deal for investors. You can buy and sell stocks for no commission.”

Interactive Brokers Group Inc. had launched its free product in September, and rivals TD Ameritrade Holding Corp., and E*Trade Financial Corp. have quickly followed. Fidelity Investments announced that as of this morning, it stopped charging individual investors commissions. For investment advisers, commissions will be cut to zero on November 4th.

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