Woo hoo! My broker, TD Ameritrade, now has ZERO commissions. I am very excited about this.
TD Ameritrade announced this a couple days ago, after Charles Schwab announced they were doing the same. The zero commission trades on stocks, ETFs and options started this morning; Charles Schwab rolls their zero commission out on October 7.
I can only assume this is the latest, greatest, and next big thing to hit the online broker market. We can all thank Robin Hood for this, as they were the first to do so a while back.
This is really fantastic news in my opinion. Prior to this morning, I paid TD Ameritrade $6.95 for stock and ETF trades, and $6.95 PLUS .75 cents PER contract for option trades. YIKES! For options, that adds up quick! There is still a per contract fee for options, but it’s only .65 cents per contract and that’s it.
If you are a long-term investor and hold your investments for 6 months, year, 2 years, etc., then the fees were probably no big deal to you. However, for people like me – swing traders and day traders – the fees added up QUICK!
I placed my first option trade this morning with the new zero commission thing, and it felt GREAT!!