Every six months or so comes news of a significant financial investment industry development which demonstrates their race to reduce prices in some way, and Schwab has just become the latest to offer zero commission online stock, ETF, and options trades – quite an impressive development indeed!
Recent years have witnessed an impressive move to lower cost, commission-free funds across many major investment brokerage firms. Here are just a few examples of this trend:
Vanguard recently reduced fees across all funds, Fidelity released zero-cost index funds with reduced fees, and both Vanguard and Fidelity increased commission-free ETF trading by 1,800+ ETFs (Schwab did the same thing on the same day)
Even with these developments, I was dubious we’d reach the point where major investment brokers offered free stock and ETF trading. But my doubts have been dispelled as major brokerage houses now offer such free trading platforms for stock and ETF investments.
Investors familiar with investing over the last decade may recall Zecco entering the $0 stock trading arena and realizing after some years it wasn’t viable as a business model, infuriating customers by charging trading fees, before being bought out by TradeKing (later acquired by Ally Bank and rebranded Ally Invest).
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