On October 1, Charles Schwab announced that they were reducing their online trading commissions for U.S. and Canadian-listed stocks, options, and ETFs to $0, effective October 7. That’s zero dollars, as in completely free. Schwab previously charged commissions of $4.95 per trade before this announcement. In rapid succession, other major brokerage firms announced they too will be eliminating trading commissions.
Eliminating trading fees may have cost the major discount brokers each hundreds of millions of dollars a year in revenue, this is actually great news for the individual investor. Here is a list of online brokers who’ve dropped trading fees, and find out how this is possible.