E*Trade To Remove Commission On Stocks, ETFs & Options

Following on from announcements made by Charles Schwab & TD Ameritrade E*Trade has announced that it will be removing commission on all online US listed Stocks, ETFs & Options. Options contracts will still be charged at $0.65 per contract (same as Schwab & TD). These changes will go into effect on October 7th, 2019.

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Vince
Vince (@guest_818585)
October 4, 2019 13:51

I think the shoe is about to drop in the stock market. They are trying to reel in as many people as possible.

Jon
Jon (@guest_818825)
October 5, 2019 02:37

Its all a conspiracy maaaaannnnnnn

Alicia
Alicia (@guest_817949)
October 3, 2019 09:51

Anyone who has avoided Interactive Brokers because of their min activity charges etc might be interested in the IBKR Lite option, also in October, commission free ETF and US stocks in Mobile platform and iBot (can be used from desktop, I seem to recall but check it…):

https://www.interactivebrokers.com/en/index.php?f=45196

(scroll down to the Compare Plans link)

cnqr
cnqr (@guest_818032)
October 3, 2019 12:33

IBKR Lite is terrible in comparison. You’ll get worse fill prices and they will make money off your trades wherever they can.

There is a reason they introduced it as a completely different platform.

Alicia
Alicia (@guest_818538)
October 4, 2019 12:56

I’ll be sticking with TWS. Ive used Mobile once, with near enough instant fill at least as far as could reasonably expect over a phone. Everyone is making $ somewhere, it’s a given. I can see a possible use for Lite for those managing Family Accounts with infrequent trades. Dealing with one less broker night make life simpler for some.

MoreSun
MoreSun (@guest_818556)
October 4, 2019 13:18

How do you know? Platform literally hasn’t launched yet, it’s still “‘coming in October”…

Tyler L
Tyler L (@guest_817829)
October 2, 2019 23:27

So where do these companies make profit at now? Kickbacks from ETFs?

I’ll be keeping an eye on my accounts to make sure they stop don’t start sneaking in fees.

Willy Brandt
Willy Brandt (@guest_817890)
October 3, 2019 02:46

The sell your order flow details. Upstream markets are able to buy and sell your order before you and make 0.0001/share profit.

Read the book “Flash Boys” from Michael Lewis, if you wanna know more.

C
C (@guest_817927)
October 3, 2019 08:48

They do this already? Or will they start doing this with the changes?

MoreSun
MoreSun (@guest_818565)
October 4, 2019 13:28
  C

They already do that. Etrade will take about 15-20% earnings hit I think was the stat I saw. TD Ameritrade will get hit worse.

CT
CT (@guest_817825)
October 2, 2019 23:22

Guess we should thank Robinhood that started all this?

SamL
SamL (@guest_817893)
October 3, 2019 03:12
  CT

Vanguard started it over 40 years ago.

park dan il
park dan il (@guest_817751)
October 2, 2019 21:00

They’re all scrambling to catch up with the times and not end up like the dinosaurs. Apps like WeBull and Robinhood are where it’s at these days.

Brandon
Brandon (@guest_817840)
October 2, 2019 23:57

Robinhood will die after these changes go into affect… really no reason to stay

cnqr
cnqr (@guest_818031)
October 3, 2019 12:30

0 fee options is still an advantage for people who buy many contracts.

Ferris
Ferris (@guest_817730)
October 2, 2019 20:32

How to make your stock price drop by 25% in a day made simple.

Newbie
Newbie (@guest_817678)
October 2, 2019 19:08

When are they going to remove fee on options contract.

BrokerMania
BrokerMania (@guest_817707)
October 2, 2019 20:06

Robinhood and Firstrade already removed them

Jon
Jon (@guest_818823)
October 5, 2019 02:36

Robinhoods options suck. Unless I’m missing something when I go into an option chain all I see is options like a month out. Want to trade SPX options with an expiry date next week? Unless I’m missing something you can’t even do that with Robinhood.

AV
AV (@guest_817674)
October 2, 2019 18:58

Also waiting for fidelity and TIAA to remove their commissions.

SamL
SamL (@guest_817666)
October 2, 2019 18:42

If the brokerage bonuses dry up, then there will be no reason not to be at Vanguard, especially for those of who prefer mutual funds to ETFs (though ETF trading was already free at Vanguard). Their funds are free to trade, they have the best cash rates by far, and they’re certainly best aligned to investors’ interests.

I only go to these other brokerages to pick up bonuses (and MEdge for Pref Rew), and I’ll keep doing that while it lasts.

Free ETF trades is actually a nothingburger, and it’ll probably drive down bonuses, but whatever, things change.

Melvin
Melvin (@guest_817647)
October 2, 2019 18:13

I wonder if Fidelity will follow. They just had a big national campaign touting their $4.95 trades, so if they did it would show their fear of losing market share to a few competitors. I know they lead in a few different ways (no min funds and super low or zero ERs), but those $4.95 commercials are probably getting pulled now lol.

SamL
SamL (@guest_817669)
October 2, 2019 18:46

They have the best HSA, though that’s a pretty small market (by AUM).