This past week, I was informed that three of my brokerages have reduced their commissions. TD Ameritrade reduced their trade commissions from $9.99 to $6.95 per trade. E*TRADE also reduced their rate from $9.99 to $6.95 per trade. And, I found that Fidelity lowered their price from $7.95 to $4.95 per trade. This is an all out price war among online brokers!
In an October 2006 post, I mentioned that I stopped paying much attention to commissions when they dropped below $20 per trade, saying that "The difference of few dollars is not a big deal." But, it is interesting to note that stock commissions are still going down -- a true race to the bottom.
And yes, PFStock has been around since 2006. As the tagline goes:
PFStock: Providing Food for Thought and helping you to reach the Pinnacle of your Finances since 2006.
Creating a Retirement "Paycheck"
2 months ago
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2 comments:
Schwab dropped to $5.95 initially, and then matched Fidelity at $4.95 when Fidelity announced. I remember when I used to pay $50 a trade with discount brokers in the 80s/90s. And I thought that was a great deal versus full service brokers.
Well, I don’t know much about stock markets and investments but I’m looking for the information because I want to start investing my money. As I understand, it’s not very good that brokers have declined their commissions. I’m interested in investing funds because I want to provide myself a reliable future. Investing money is a passive income and I’d like to find myself making money without any special efforts. I hope that in the future I will find a reliable source for making money.
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