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TD Ameritrade: Commissions for Online Stock, ETF or Option Trades

Now $0
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TD Ameritrade is offering $0 Commissions on Online Stock, ETF and Options Trades (A $0.65 per contract fee applies for options trades). Thanks freshsqueezed

$0 Commission applies to:
  • Online equity trades (exchange-listed U.S. Stocks)
  • Online exchange-traded funds (ETFs) trades (domestic and Canadian)
  • Online option trades (Contract fees now only $0.65, plus no assignment or exercise fees)
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Select the 'Commission-Free Trading' option from the landing page here for more information. Refer to the forum thread for additional deal details & discussion. -SaltyOne

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Edited October 2, 2019 at 05:14 AM by
I just got an email from my broker. This is going to save me a fortune! Thinkorswim is the most robust trading platform IMO, and I've used them all!!

https://www.tdameritrade.com/home.page

Our award-winning investing experience, now commission-free
Announcing $0 commissions on online stock, ETF and option
trades**, starting on Thursday, October 3. Get our best-in-class
platforms, award-winning service & education, and extensive
branch network, now with commission-free trading.


**applies to exchange listed US stock, domestic and Canadian ETF, and option trades. $.65 per options contract fee, with no exercise or assignment fees.
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Last Edited by ebr October 5, 2019 at 07:00 PM
I could write paragraphs about this but here is some quick advice.
Most of us in the industry knew this day would come. Brokerage firms make more money off clients sitting in cash earning 0.50% than they do on trades. It's not a good idea to sit on a lot of cash at at brokerage firm unless you go out of your way to move it into a high yielding money market. But there isn't much of a place for cash in a portfolio(exception is your emergency fund) anyway when there are great liquid bond index funds.

95% of the 'average Joe' I am going to pick some 'good' stocks end up failing. I don't care if you know this X industry better than anyone. The odds are stacked against you. Diversify your money. It's more impactful to 'survive' the next 10-20-30yrs in the market than to try to get above normal returns. The latter will win.


Other generic non-investment financial advice:
-You need an Umbrella insurance policy - $1mill of almost blanket liability coverage for $300/yr - your car insurance company will offer this.

It depends on the person. Some people don't have $300/year to spend on liability insurance let alone any assets to protect. (Agree - anyone with assets and earning power needs this)

-You need a Will, Financial Power of Attorney, & Medical Power of Attorney.

A trust is better than a will. A trust avoids probate. A will is effectively a request to the probate judge. If you have a house and kids, set up a trust and avoid probate. (Agree - a Revocable Living Trust is a good idea for a lot of people with assets. Setting up the trust is the easy part - going around and getting everything into the name of the trust is equally as important. Also - revocable trust offers no asset protection, thus need for umbrella policy)

-Your 18+yr old children desperately need Medical POA's - you have no quick authority if your adult child is in the emergency room.

In my emergency room experience, unfortunately I have a lot, they will follow the wishes of the closest relative POA or not.

-You need to freeze your credit with all 3 bureaus and attempt to stop most forms of identity theft.

There are more than 3 credit bureaus. There are more bureaus than credit bureaus. You need to contact all of them for freezes.

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wow! Free trading! Recession is coming, wall street needs your money to let them escape first
67 Helpful?
Apparently same for Schwab. Sorry if a repost!

https://www.cnbc.com/2019/10/01/c...-etfs.html

It will be interesting to see how long these firms can keep up this business model...

The company, with a market value of about $54.7 billion, is hoping the lost fee revenue will be made up for in new assets for the firm. The last time the financial services company, with about 12 million active brokerage accounts, lowered its commission fee was in February 2017, and assets under management grew from $2.92 trillion to the current $3.72 trillion, according to a Charles Schwab spokesperson.

Since the start of 2013, the year of Robinhood's launch, Charles Schwab has returned only 7.9% per year, below the 11% annual return of the S&P 500. TD Ameritrade has returned even less at just below 5% a year.

Schwab's announcement is likely to pressure TD Ameritrade and E-Trade to drop commission fees. However, trading commissions make up about 25% of TD Ameritrade's annual revenue and 16% of E-Trade's yearly revenue, JMP noted, a much larger portion of revenue than Schwab's 7% annual revenue, the firm estimates.
64 Helpful?
Just a side note for those of you thinking to switch. These free models are for basic trading only. Like robinhood, you will NOT get priority execution for your orders. Also, the types of orders you can place will be limited as well. Service support will also be limited compared to the paid commission services that are offered.
Source - I work in the business
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#4
Apparently same for Schwab. Sorry if a repost!

https://www.cnbc.com/2019/10/01/c...-etfs.html

It will be interesting to see how long these firms can keep up this business model...

The company, with a market value of about $54.7 billion, is hoping the lost fee revenue will be made up for in new assets for the firm. The last time the financial services company, with about 12 million active brokerage accounts, lowered its commission fee was in February 2017, and assets under management grew from $2.92 trillion to the current $3.72 trillion, according to a Charles Schwab spokesperson.

Since the start of 2013, the year of Robinhood's launch, Charles Schwab has returned only 7.9% per year, below the 11% annual return of the S&P 500. TD Ameritrade has returned even less at just below 5% a year.

Schwab's announcement is likely to pressure TD Ameritrade and E-Trade to drop commission fees. However, trading commissions make up about 25% of TD Ameritrade's annual revenue and 16% of E-Trade's yearly revenue, JMP noted, a much larger portion of revenue than Schwab's 7% annual revenue, the firm estimates.
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Last edited by freshsqueezed October 2, 2019 at 12:53 AM.
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#5
Quote from freshsqueezed
:
I just got an email from my broker. This is going to save me a fortune!
Exactly - nice money savings for me too. I always liked TD better than some of the free alternatives - Wells, Bofa-Merrill etc. - so I kept all my accounts at TD. .

I have Fidelity and Schwab due to work related things but never liked their interfaces. Good thing is that TD always matched Schwab prices for my accounts. Fidelity outright sucked when it came to more complicated trades - there is a time I spent 30 minutes on the phone with them to understand why I could not place a trade and their reasoning was terrible.

This change obviously beats everything - have the platform that I like and pay no money - it can't get better than this - can it?
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#6
Quote from PrincipalMember
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Exactly - nice money savings for me too. I always liked TD better than some of the free alternatives - Wells, Bofa-Merrill etc. - so I kept all my accounts at TD. .

I have Fidelity and Schwab due to work related things but never liked their interfaces. Good thing is that TD always matched Schwab prices for my accounts. Fidelity outright sucked when it came to more complicated trades - there is a time I spent 30 minutes on the phone with them to understand why I could not place a trade and their reasoning was terrible.

This change obviously beats everything - have the platform that I like and pay no money - it can't get better than this - can it?
Agreed! I was paying $4 per trade as negotiated due to activity, but free is much better! At some point they will be charging elsewhere to make up for the huge revenue loss as I noted above.

I had considered You Invest from Chase recently, yet both their platform and trade support are absolutely pathetic.

This will definitely kill Robinhood and other similar start ups, who are already operating at losses.
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Last edited by freshsqueezed October 2, 2019 at 04:44 PM.
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#7
Excellent news. I'm a small fry trader, but I've been limited by the trade costs, instead sitting on stocks long-term by going with dividend stocks. If I don't have to factor in a cost for each trade, I'll be more likely to play with growth stocks.
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#8
Good news... just got the email this morning... I was about to switch to RobinHood... waiting for ETrade to follow... their platform is best...
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Last edited by NM 156 October 2, 2019 at 05:01 AM.
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wow! Free trading! Recession is coming, wall street needs your money to let them escape first
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#10
I have both TD Ameritrade and Vanguard accounts and was disappointed that Vanguard only charged $2 per trade versus TD charging $6. Free is awesome - just in time for the bear market...
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#11
Just curious what your thoughts are about how this will affect market swings? My opinion is that there will be much less hesitation by small investors to buy/sell when there is not a fee involved thus creating larger market swings. The only traders that can fully take advantage of this are the large institutions that have algorithms doing their trading for them.
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#12
Out of all the ones mentioned here Schwab has by far and away the best platform and overall suite of products. Their bank product has been ranked number #1 for some time. No fee ATMs and they rebate any ATM fees charged by other banks. Couple this with their advice offerings and everyone else is vying for second place.

You can tell who this will actually hurt as TD was down 26% yesterday and Schwab 10%.
I don't see Robinhood making it through this one as their business model just got overtaken and they don't come close with the product suite or best execution the others offer.
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#13
Wonder if this apply to Thinkorswim which is also owned by TD...
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Quote from Maiablt91
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Out of all the ones mentioned here Schwab has by far and away the best platform and overall suite of products. Their bank product has been ranked number #1 for some time. No fee ATMs and they rebate any ATM fees charged by other banks. Couple this with their advice offerings and everyone else is vying for second place.

You can tell who this will actually hurt as TD was down 26% yesterday and Schwab 10%.
I don't see Robinhood making it through this one as their business model just got overtaken and they don't come close with the product suite or best execution the others offer.
Not so sure it will hurt TD... the entire market tanked yesterday... just look forward to ad based trading platforms...
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Last edited by NM 156 October 2, 2019 at 05:17 AM.
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#15
Hope eTrade does this too. Otherwise, I will switch.
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