Commission fees are usually tacked on to trades in the stock world. There’s no way around them, as you will have to pay to play. Charles Schwab is leading the brokerage industry by offering a sexy perk: allowing commission free trades on their own ETFS in the NYSE Arca exchange. We’re hopeful that others will follow.
The CEO of Charles Schwab insists that it’s a long-term strategy and not a promo. It’s a bold move that could attract more clients. There’s nothing investors love more than fee-free offers.
Globe and Mail provides the inside look at the ETFs offered:
The first Schwab ETFs included Schwab U.S. Broad Market ETF
(SCHB-N 24.86 0.29 1.18%); Schwab U.S. Large Cap ETF
(SCHX-N 24.84 0.31 1.26%); Schwab U.S. Small-Cap ETF
(SCHA-N 24.72 0.13 0.53%)and Schwab International Equity
(SCHF-N 24.99 0.36 1.46%).
The first two have management expense ratios of 0.08 per cent while the others charge 0.15 per cent.
If you find yourself trading ETFs on the regular, then you might want to take a look at Charles Schwab as a broker.
*Image courtesy of Good as Goeldi.
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