3 major brokers stop charging commission | Metals Mine

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3 major brokers stop charging commission

  • #1
  • First Post: Oct 2, 2019 12:34pm Oct 2, 2019 12:34pm
What a great day to be a trader! Interactive Brokers announced they were doing away with commissions for equities and ETFs first, then Schwab and TD Ameritrade followed suit yesterday. I think the whole industry will have to do away with commissions now.

This is amazing news for traders. I don't know how many thousands of dollars I've spent on commissions over the past 14 years.
Self-sufficiency is the greatest of all wealth. - Epicurus
  • #2
  • Oct 2, 2019 1:57pm Oct 2, 2019 1:57pm
Quoting Ef5
What a great day to be a trader! Interactive Brokers announced they were doing away with commissions for equities and ETFs first, then Schwab and TD Ameritrade followed suit yesterday. I think the whole industry will have to do away with commissions now. This is amazing news for traders. I don't know how many thousands of dollars I've spent on commissions over the past 14 years.
Well yeah but I am always careful with this... I would like to see the whole picture, meaning.. deposit X amount, make trades... withdraw... Divide withdrawal over deposit(s)... Then I would see where all the hidden costs are It was similar to "low spread" at some but then they charged for commissions... Now I wonder where they get the money from.. Some fees.... BTW some compensate with swaps or whatever... Some earn also with withdrawal fees etc... So again, would be careful until I see what goes IN and what OUT, compared to other brokers.... Some big differences among brokers... They are masters in this, how to hide the real costs

I mean just check, some people think BUY swaps are negligible... they don't even realise...
Can you afford to take that chance?
  • #3
  • Oct 3, 2019 12:24am Oct 3, 2019 12:24am
Quoting auricforecas
{quote} Well yeah but I am always careful with this... I would like to see the whole picture, meaning.. deposit X amount, make trades... withdraw... Divide withdrawal over deposit(s)... Then I would see where all the hidden costs are It was similar to "low spread" at some but then they charged for commissions... Now I wonder where they get the money from.. Some fees.... BTW some compensate with swaps or whatever... Some earn also with withdrawal fees etc... So again, would be careful until I see what goes IN and what OUT, compared to other...
Normally I have a healthy distrust for brokers, but in my experience these 3 are pretty good. I have accounts at each of them and I've never had any real problems to speak of.

I'm not too clear how these guys are going to make money now. They'll still get some from margin interest and they can probably do overnight lending, but I don't know if there's really enough money in that to support their huge workforces. IB is particularly interesting because they pay decent interest on idle cash and have low margin rates so their spread is especially low.
Self-sufficiency is the greatest of all wealth. - Epicurus
  • #4
  • Oct 3, 2019 12:25am Oct 3, 2019 12:25am
Etrade announced today they're ending commissions too!
Self-sufficiency is the greatest of all wealth. - Epicurus
  • #5
  • Oct 3, 2019 12:54am Oct 3, 2019 12:54am
Quoting Ef5
What a great day to be a trader! Interactive Brokers announced they were doing away with commissions for equities and ETFs first, then Schwab and TD Ameritrade followed suit yesterday. I think the whole industry will have to do away with commissions now. This is amazing news for traders. I don't know how many thousands of dollars I've spent on commissions over the past 14 years.
There is no free lunch! So they have to adjust their business model to make other ways to maintain profit margins. I guess they will be bundling and unbundeling services etc.

some thoughts

  1. paying for charting software
  2. selling your trading data
  3. Let algo firms front run you etc

persistence and determination alone are omnipotent
  • #6
  • Last Post: Oct 4, 2019 12:30am Oct 4, 2019 12:30am
Quoting Ll1979
{quote} There is no free lunch! So they have to adjust their business model to make other ways to maintain profit margins. I guess they will be bundling and unbundeling services etc. some thoughts paying for charting software selling your trading data Let algo firms front run you etc
That sounds pretty accurate to me. IB has charges for live data, but the other brokers couldn't get away with that. I think points 2 and 3 are very possible, but they've probably already been doing that.
Self-sufficiency is the greatest of all wealth. - Epicurus
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