Broker commissions coming down to 0

All of us pay our brokers commissions. Schwab has just eliminated commissions on stock,etf, and options commissions starting October 7th. Never thought we’d get to this level.



Schwab is just matching Interactive Brokers. You won’t get the best price execution and the Broker will still be paid for order flow. From Barron’s:

"Another Salvo in the Brokerage Fee Wars
Sept. 30, 2019 2:58 pm ET

Ken Hawkins
The brokerage race to zero – as in zero commissions – rolls along. Interactive Brokers Group late last week unveiled a new service, IBKR Lite, that offers an unlimited number of commission-free stock and ETF trades.

Some observers say Interactive Brokers made the move to compete with Robinhood, the zero-commission trading app, but it could also ratchet up pressure on pricing models at discount brokerages such as Charles Schwab, E*Trade and TD Ameritrade, writes. Indeed, investors appeared to view the news negatively, with stocks in the three companies selling off Thursday afternoon in the wake of the announcement, according to CNBC.

Interactive Brokers, which Barron’s ranked No. 1 among online brokers, said the new service would have no account minimums or inactivity fees. It will route IBKR Lite orders to market makers in exchange for payments for order flow.

The company is also keeping its existing service, which charges commissions but routes orders through a “smart” system aimed at obtaining the best prices on trades. Interactive Brokers will rebrand this service as IBKR Pro. Customers will be able to switch between the two levels of service up to three times and then once each quarter.

Competition for customers has caused brokerages to lower commissions over the years and drop them entirely for some ETFs. Robinhood has been attracting new customers by charging zero commissions on stocks, ETFs, options and cryptocurrencies, and JPMorgan Chase ’s YouInvest service, launched last year, offers a limited number of free trades, notes."

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JPMorgan Chase ’s YouInvest service, launched last year, offers a limited number of free trades, notes."

Just some quick clarification on this, the number of free trades is limited to 100 a year, unless you have something like $250k or more then it is unlimited.

But, the platform is restricted. You can’t (currently) buy whatever you want. No penny stocks (not even with a fee) and no leveraged ETFs. I looked at YouInvest last year but they would not let me buy QLD so I stuck with Etrade.

Hey guys,

This board is for discussing individual growth stocks. Please end this off topic discussion on brokerage commissions. No more replies to this thread please.

Thanks for your cooperation.

Assistant board manager


I agree with Lennie, Please TAKE THIS DISCUSSION OFF-BOARD.