Welcome to “no trading fees.”
Fidelity will also offer zero-commission online trades on stocks, options, and ETFs.
Fidelity said it would cut fees to $0 on online trades of U.S. stocks. For investment advisers, commissions will be cut to zero by November 4, 2019.
“With this decision, Fidelity is taking a different path from the industry,” Kathleen Murphy, president of Fidelity Investments’ personal investing business said, as quoted by CNBC. “We are providing customers unmatched value while challenging industry practices that appear to give value in one place when they are actually having customers pay in other ways.”
Charles Schwab Cut Fees Last Week
Charles Schwab cut all commissions for stock trading, ETFs and options on its mobile and web platforms. The move comes just a week after Interactive Brokers Group rolled out its IBKR Lite service, which also cut commissions for U.S. listed stocks and ETFs. All as the entire industry faces heavy competition from upstarts like Robinhood.
For Schwab, “From day one, my passion has been to make investing easier and more affordable for everyone,” said Charles Schwab, as quoted by the company. “Eliminating commissions ensures my ultimate vision is realized — making investing accessible to all.”
As more brokers join the push for zero commissions, their stocks are quickly recovering. In fact, many top industry names have become oversold on the initial shock, including TD Ameritrade, E-Trade Financial, and Interactive Brokers.
