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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Free mutual fund trades

msf
edited August 2018 in Fund Discussions
No mins, no ups, no extras (anyone else remember Earle Scheib?)

Firstrade Moves To Free Online Trading – Stocks, ETFs, Options, Mutual Funds
New York, August 23, 2018 - Firstrade Securities, Inc., a leading online brokerage firm, has eliminated its commissions for all stocks, exchange-traded funds (ETFs), options, and mutual funds, effective today. Firstrade customers will now be able to trade for free with no time restrictions, no limits on the number of trades allowed and no minimum account requirements. ...

https://www.firstrade.com/content/en-us/aboutus/press?page=pr180823

Comments

  • TedTed
    @msf: The only cars that had worse paint jobs other than Earle Scheib were those painted by Maaco.
    Regards,
    Ted


  • rforno
    edited August 2018
    Translation: "Hey, Fido? You think zero-fee funds are awesome? Here, hold our beer...."

    The race to the bottom continues....
  • MarkMark
    Great news.
  • TedTed
    @MFO Members; Anytime the cost of investing is reduced, its a win win for investors.
    Regards,
    Ted
  • rforno

    Sure - but what are you giving up in return for it? Choice? Fees elsewhere? Restrictions of some sort or other? There is no free lunch -- even on Wall Street.
    Ted said:

    @MFO Members; Anytime the cost of investing is reduced, its a win win for investors.
    Regards,
    Ted

  • LewisBraham
    Two things, I wonder if this free promotion at Firstrade is permanent and how much money can they make off securities lending?
  • msf
    edited August 2018
    As I posted in another thread, I don't believe the model is sustainable for mutual funds.

    As the cost to provide accounts tends to zero, the minimum balance for a stock/ETF account (to cover those costs with securities lending) also tends toward zero. So that part might persist.

    In the meantime, enjoy the free ride.
  • Old_JoeOld_Joe
    "The only cars that had worse paint jobs other than Earle Scheib were those painted by Maaco."
    @Ted- your memory seems to be still working pretty good.
    :)
  • carew388carew388
    Maybe if E-Trade implements this pricing scheme, I'll stick with them. Not in the mood to add any new brokerages(possible customer service issues), and would like to consolidate assets at Fidelity, Schwab and Vanguard.
  • wxman123
    I've been with Firstrade for years. Also use Schwab, vanguard, FIDO and TD for various accounts. Firstrade is extremely basic but just fine.
  • VintageFreakVintageFreak
    You know I used to have account with FirstTrade. I closed it. The problem is you don't know how long this will last, for one. And then TDAmeritrade will buy them out, I just know it.
  • carew388carew388
    Yep-TDAmeritrade bought Scottrade and I closed my Scottrade account, due to poor CS issues with an earlier TDAmeritrade account.The idea of buying funds like DODIX GADVX FPNIX OSTIX and BERIX with no TF at the same brokerage seems too good to be true.
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