Posted by William Charles on October 2, 2019
Brokerage Bonuses

Published on October 2nd, 2019 | by William Charles

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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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G
G

Waiting for Fidelity

Jon
Chuck

Thanks, posted now

AndreRamirez
AndreRamirez

What I don’t get is- why are all these brokerages making this announcement at the same exact time? Was this pre-meditated? They’ve been incredibly slow to adapt for years and then randomly in 1 day 3 brokerages go zero commission…crazy.

Bob Roberts
Bob Roberts

Three words:
Competition
Competition
Competition

Schwab gets less revenue from commissions than the others. So they cut first and rivals have to follow.

soulespada
soulespada

I think they didn’t want to implement it because they could still get money from the fees but when Schwab implemented the change yesterday, the rest had no choice but to follow suit as to not lose their investors and keep up with their competitors

Jeremy
Jeremy

+1

MoreSun
MoreSun

Because Schwab would have taken most of their customers and their deposits if they didn’t match. Heck, I went to tweet at eTrade about this today until I saw other customers were already getting the message across lol!

raj
raj

They can read the writing on the walls and had the transition prepared. I guess schwab broke ranks and they had to follow suit before people start to move money.

Ben
Ben

Fidelity???

MoreSun
MoreSun

They’ll have to. Don’t know why they’re still holding out. Go make some noise at them on Twitter if you’re annoyed. Everyone else will be, basically, fee free by Monday…

Melvin
Melvin

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

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

SamL
SamL

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.

AV
AV

Also waiting for fidelity and TIAA to remove their commissions.

Newbie
Newbie

When are they going to remove fee on options contract.

BrokerMania
BrokerMania

Robinhood and Firstrade already removed them

Jon
Jon

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.

Ferris
Ferris

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

park dan il
park dan il

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

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

cnqr
cnqr

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

CT
CT

Guess we should thank Robinhood that started all this?

SamL
SamL

Vanguard started it over 40 years ago.

Tyler L
Tyler L

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

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

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

MoreSun
MoreSun

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.

Alicia
Alicia

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

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

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

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

Vince
Vince

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

Its all a conspiracy maaaaannnnnnn

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