ZERO Commission Impact ?

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RIMDBogle
Posts: 146
Joined: Thu Jul 12, 2018 10:13 pm

ZERO Commission Impact ?

Post by RIMDBogle » Wed Nov 06, 2019 10:55 pm

ZERO Commission Impact ?
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Thanks for your replies to my threads.

I know this question has been asked, but here goes...

FIDO/TDA/Schwab/Etrade started offering ZERO commission on trades. This lift the restrictions on captive ETF list.

If have ETF portfolios in many accounts/brokerages, will I need to pick the same ETF across brokerages to fit Asset allocation?

How does ZERO commission impact investing?

Thanks for sharing.

Jack FFR1846
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Re: ZERO Commission Impact ?

Post by Jack FFR1846 » Wed Nov 06, 2019 11:00 pm

You don't have to pick the same ETF.

For example, for US equity, I hold FZROX, FXAIX, SCHB, VTI, SPTM in various places, all now at zero commission to trade. Although I could go to one, I don't see any reason to. They are all very similar and close enough for me.

If YOU want to make them all the same, there's nothing wrong with that either, now that it can be done for no cost.
Bogle: Smart Beta is stupid

rkhusky
Posts: 7829
Joined: Thu Aug 18, 2011 8:09 pm

Re: ZERO Commission Impact ?

Post by rkhusky » Thu Nov 07, 2019 8:50 am

No impact for me since I don't trade and use mutual funds.

Using the same ETF makes it easier to compute your AA and manage your portfolio. But if you don't keep close tabs, perhaps it is not a big deal. Some might just track stocks versus bonds and don't really care whether the stocks are small or large or US or International or whether bonds are US or International or government or corporate or AAA or BBB.

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JoMoney
Posts: 8141
Joined: Tue Jul 23, 2013 5:31 am

Re: ZERO Commission Impact ?

Post by JoMoney » Thu Nov 07, 2019 9:03 am

Don't forget Vanguard, at least as far as zero commission to trade most ETFs goes.
https://investor.vanguard.com/etf/commission-free-etfs

As far as the impact... not sure yet. I remember when ultra-low cost Internet brokers came about in the late 1990's it coincided with the growth of lots of individual day-traders/trading schemes, which likely contributed to the pumping up of stock values.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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