CharlesSchwab Brokerage Eliminating Commissions

[Go2Guy]

Whoa; you're gonna need that $0 Commissions after you see how the stock (SCHW) is tanking,

"....Starting on October 7, Schwab, which holds about $3.72 trillion in client assets, will be slashing its trading commission cost for U.S. stocks and ETFs from the previous $4.95 to zero. Trading options will continue to cost 65 cents per contract.The firm’s chief financial officer estimates the commissions fed about $90 million to $100 million in quarterly revenue, about 3% to 4% of total net revenue."

https://www.cnbc.com/2019/10/01/cha...ssions-for-trading-in-us-stocks-and-etfs.html

 

[Trice]

John Bogle is dead but the Vanguard Effect lives on.

 

[DarkStar]

Compared to the numbers from TD Ameritrade, they are doing a lot better then them.

 

[ArgentCy]

Are they front running my trades and lending my shares out to short sellers? Those are more important than $5 / trade.

 

[SayMyName]

I've recently moved some funds into their offering of a "robo-advisor" portfolio, which appears to be made up of mostly Schwab branded / packaged ETFs. Will be interesting to track performance compared to an alternate approach of just dollar-cost averaging at regular intervals into a low-cost index fund (like S&P or Total Market).

 

[DarkStar]

Are they front running my trades and lending my shares out to short sellers? Those are more important than $5 / trade.

They all do that. Look at rate of return compared to actual index to see how bad they are abusing being their own market.