No Fee Brokerage Firms Overview
In recent years, investors have been demanding fewer fees from their brokerage houses. Firms have
responded by slashing a wide range of charges. This article will take a look at some of the specific
savings, and see which firms are truly no-fee brokers.
Fees
Just ten years ago, most brokers charged a host of fees. Establishing an IRA carried a fee, and
there was an annual fee for the retirement account as well. An account with a low balance was usually
charged something, and accounts with high balances would be charged an annual maintenance fee.
Traders who didn't have sufficient activity would also be assessed a fee. Brokers would also charge
a fee just for closing an account.
Today, this landscape is changing and has already changed quite a bit. Many brokers, although not
all, have eliminated a lot of these fees. And there is now an expectation among investors that
brokerage houses shouldn't charge unnecessary fees.
Several brokers in particular have taken the lead in reducing or eliminating excessive charges. Here's
a rundown on some of them.
TD Ameritrade
Some of the fewest fees can probably be found at TD Ameritrade. The broker doesn't charge anything to setup an IRA, to maintain it, or even to close it. Most brokers do charge a fee to close a retirement account. The same policy applies to a regular trading account. There are no low-balance fees or charges for inactivity.
There are no fees for cash management features, either. The broker sends out checks and a Visa debit card free of charge. Even ATM fees that are incurred while using the card are reimbursed by the broker.
TD Ameritrade has eliminated trading fees for stocks and ETFs. The broker, however, still charging
$49.99 on many mutual funds and 65 cents on each option contract.
TD Ameritrade has excellent trading tools, but yet doesn't charge a dime to use them. There are no account minimums to access the technology, nor are there any trading requirements. The broker offers two desktop platforms, three mobile apps, and an app for Apple Watch. All of them are free for all clients.
Learn more in
TD Ameritrade review.
TD Ameritrade Promotion
$0 stock/ETF trades and a transfer fee refund.
Open TD Ameritrade Account
Firstrade
Firstrade Securities offers the ultimate no fee account. Not only there are no account fees but there are also no brokerage
commissions. That's right - you pay $0 commission on all stock, ETF, options and mutual funds trades.
No other broker managed to offer so many $0-commission products as Firstrade.
Learn more in
Firstrade review.
Firstrade Promotion
2 free stocks & $0 fees on all mutual fund, stock, ETF, & option trades.
Open Firstrade Account
Fidelity
A brokerage account can be setup at Fidelity with any balance, and the broker doesn't assess any fees. There is no annual or inactivity fee for a regular brokerage or retirement account with the firm. However, Fidelity does charge a $50 fee for closing an IRA. Paper statements can be selected for any account free of charge. While the broker's advanced desktop system does carry active trader requirements, cash management tools are free, and ATM charges are refunded.
Fidelity does not charge trading fees for stocks and ETFs. It does, however, charge
$49.95 on most mutual funds and 65 cents on option contracts.
Learn more in
Fidelity Investments review.
Schwab
A Schwab brokerage account comes with no special fees. The broker has waived all maintenance, inactivity, low-balance, and annual charges. StreetSmart Edge, the broker's advanced desktop platform, now only requires a $1,000 account balance. An IRA is free to setup and maintain, and there is no charge to close one. Free checks and a Visa card are available, and ATM fees are reimbursed.
Like Fidelity and TD Ameritrade, Schwab has no commissions on stock and ETF trades. The broker
charges $49.95 on most mutual funds purchases and 65 cents on option contracts.
Learn more in
Charles Schwab review.
Ally Invest
An Ally Invest brokerage account carries no special fees. There are no annual, maintenance, or inactivity fees. The broker does not require a
minimum balance for any account. Establishing an IRA carries no charge, nor is there an annual fee for one. Closing an IRA, however, costs $50.
There is also no fee, account minimum, or trading requirements to use the broker's desktop platform. The company has the lowest commissions in
this list after Firstrade.
Learn more in
Ally Invest review.
Ally Invest Promotion
Up to $3,000 cash bonus + $0 trades + transfer fee rebate.
Open Ally Invest Account
No Fee Brokerage Accounts Summary
As more and more brokerage houses move towards a no-fee structure, traders will have a larger selection of firms to choose from. While many brokers have eliminated
fees in certain areas, they still must find a way to be profitable; so they inevitably will impose fees in some cases. The most common charges at no-fee brokers
nowadays is closing an IRA or requesting paper documents.
