Fidelity Latest Company to Eliminate Fees for Online Trading
Fidelity Investments said that it is eliminating trading commissions, becoming the latest company to reduce brokerage fees. Fidelity boasts $2.46 trillion in assets that it manages for clients and has 21.8 million accounts with total assets of $6.8 trillion. Before Thursday’s move, Fidelity charged $4.95 for online stock trades.
There were already many apps that offered no fee trading such as Robinhood, WeBull, Moomoo and many many more. But it was Charles Schwab that started the no fee trend for established companies. TD Ameritrade, E-Trade and Interactive Brokers soon followed.
Fidelity has long argued that the firm trades stocks more efficiently than many of its peers, saving money for clients. Two months ago, Fidelity unveiled a plan to divert clients’ cash into higher-yielding money-market funds. That differs from most other companies that profit from paying very low rates on cash.