Popular brokerages are now offering commission-free online trading for U.S. stocks and ETFs.
More firms are announcing free trade options.
Major brokerages such as Interactive Brokers, Charles Schwab and E-Trade, among others, recently announced that they would stop charging commissions to their clients who trade stocks and exchange-traded funds. Anytime people can pay less or nothing to invest, it helps them boost returns by keeping more money. Market watchers say brokerage houses’ decision to drop certain trading fees is part of a trend of lower investment costs in general over the years such as falling expense ratios. But brokerages aren’t offering free trading services because they’re altruistic. These companies are fending off competition from newer online brokerages. Here are eight facts you should know about free trades.