Lower Trading Fees Benefit Clients

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Lower Trading Fees Benefit Clients

[/fusion_text][fusion_text]It seems that many of the largest brokerage firms are engaged in a price war, and our clients are benefitting by having their investment costs drop. Fees have recently become a hot button issue and are at the forefront of many investors’ minds. In order to keep their existing customers and compete for new customers, Schwab, Fidelity, and TD Ameritrade each recently lowered their trading commissions.

The most recent round of changes to our custodian’s pricing schedules started late in February when Fidelity announced that they were lowering the fee to trade stocks and ETFs to $4.95 (from $7.95) per trade. Not to be outdone, Charles Schwab announced just a few hours later that they too were lowering their stock/ETF trading fee to $4.95 per trade (down from $6.95). It is worth noting, that assets held at Schwab must either be worth $1,000,000 or be receiving electronic statements in order to receive this rate, otherwise a rate of $12.95 per trade will apply.

Several days later, TD Ameritrade announced that they would not only be lowering the cost to trade stocks and ETFs to $6.95 per trade (from $9.95) but would also be lowering the cost to trade DFA mutual funds to $10 (from $24). Check mate.

At Adam Smith Advisors, it has always been a primary focus of ours to keep our clients’ investment costs low.  We try to be as efficient as possible when trading in our clients’ accounts, and as buy-and-hold investors we don’t trade all that often. We appreciate our custodians’ continuing efforts to save our clients money.[/fusion_text][separator style_type=”single” top_margin=”” bottom_margin=”” sep_color=”” icon=”” width=”” class=”” id=””][fusion_text]

Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. ASA gathers its data from sources it considers reliable. However, ASA makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.