This week Charles Schwab announced that they will no longer charge for online trading of stocks, ETFs, and options. Prior to the announcement, Schwab was charging $4.95 per trade. Just this morning, TD Ameritrade also announced that they will cease charging customers trading commissions for online trades of stocks, ETFs, and options (see the official press release here). That’s great news for investors!
Going back to 1998, investors at Schwab paid $29.95 for online trades and Ameritrade charged $8 for market orders*. The drop in trading costs reflect how technology has helped the global financial system become more efficient and reduce costs for investors over the last 20 years!