Finally, a Win for Retail Traders
As the financial services realm continues to move from the 1980’s into the 21st century, it was only a matter of time until incumbent institutional trading brokerages caved. In a surprise announcement, Charles Schwab announced October 1st it would follow mobile trading app RobinHood’s lead and reduce all trading commissions on U.S. Stocks, ETFs, and Options to $0 (though Options will remain $0.65 per contract). Unsurprisingly, hours later trading platform behemoth TD Ameritrade and mainstay E-Trade joined the $0 commission club. This shift echoes the driving force and mainstream adoption of modern technology into financial services, and traders should indeed rejoice. Other brokerages will likely make similar announcements in due time, as this puts any remaining fee-based brokerage at a tremendous disadvantage, as customers now have top tier zero-cost options to choose from. Get your capital ready.