Yesterday, TD Ameritrade announced there would be no commissions for equity trades. They reduced the ticket charge from $6.95 to zero on all stock and option trades. This includes Exchange Traded funds-also known as ETF’s. ETF’s are the largest type of security we use in clients’ accounts.
No Commissions for Equity Trades

What Does No Commissions For Equity Trades Mean To You?

In the past, if we were to sell shares of an ETF and buy another, you would incur a total cost of $13.90. Now, these trades will cost you nothing.
 
This has a positive impact on all our clients. But it has the greatest effect on smaller accounts. Before this announcement, we restricted the funds we used for smaller accounts. TD Ameritrade had a limited list of ETF’s available with no transaction fees. While adequate, this opens the entire universe of funds to these clients. This allows us greater flexibility to manage those accounts.

Mutual Funds Not Included

This reduction in costs does not include mutual funds. TD Ameritrade has over 3,000 mutual funds available to our clients with no transaction fees. We give those funds priority in our selection process. Mutual funds not on the list cost $18 or more for purchases and sales. 

Overall Impact

It is difficult to pinpoint how much this will impact each client, but any cost-cutting measure is a good one. Reducing costs was a primary reason we chose TD Ameritrade as our custodian three years ago. Now they have made it even more affordable for our clients.
 
If you have questions about how this impacts you, please call.