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Paul Katzeff: Fidelity Slashes Online Stock, ETF Commission To $4.95, A 38% Cut

FYI: Fidelity Investments is returning fire in the online brokerage industry's price war. Fidelity, which lays claim to the mantle of largest online brokerage firm with its 17.9 million accounts and $1.7 trillion in total brokerage client assets, on Tuesday slashed its base online retail commissions for U.S. stock and ETF trades to $4.95.

That was a $3 per-trade reduction, or 38%, and Fidelity's first commission cut in 7 years.
Regards,
Ted
http://www.investors.com/etfs-and-funds/mutual-funds/fidelity-slashes-online-stock-etf-commission-to-4-95-a-38-cut/

Comments

  • Most excellent news. That announcement pretty much seals where my Scottrade accounts will be going.
  • From what I can tell Fidelity doesn't distinguish between market orders and limit or other types of orders, such as market on close or trailing stop-loss orders, but is anyone aware that that isn't true? At this point I only use my Fidelity account for NTF funds that aren't available in my other accounts, and I don't have extra cash there so I can't test other order types, but I would consider using the account for stocks and etfs if all order types were at the lowest cost. Thanks @Ted!!
  • @LLJB - no difference by order type based upon my trading experience.
  • Now if only Fidelity slashes their MF minimums to $100 which I believe both Schwab and TD have done, that would be just perfect.
  • Trading iShares ETF is free of commission. What I like to see to another round of reduction in purchasing Transaction Fee funds to $10 instead of $49.95.

    As for individual stocks, I don't trade enough to enjoy to make it worthwhile.
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