Fidelity One-Ups Online Brokers With Lower Trading Commission and Free ETF Trades
Tweet
Share
E-mailGet Alerts SCHW Hot Sheet
Join SI Premium – FREE
Investment giant Fidelity Investments stepped up the online broker and ETF price war today, creating selling pressure in the shares of its rivals.
Fidelity said on Tuesday that it will offer its retail customers commission-free online trades for 25 iShares funds in a partnership that has been made with BlackRock.
The global leader in Exchange Trade Funds also announced that it has cut its online U.S. equity trade commissions to a flat rate of $7.95 for all customers, no matter the trading level. The program starts on Wednesday.
"Our new $7.95 online commission is a great value and will automatically reduce and simplify trading costs for millions of investors, whether they place hundreds of trades per year with Fidelity or just a handful," said James C. Burton, president of Fidelity’s retail brokerage business.
The commission-free offering is for all online buy and sells orders through the company’s online and wireless channels. The program will be made available to the current 12 million brokerage accounts with Fidelity and will reduce some customers’ commissions by as much as 60 percent.
Investors will have the ability to trade more than 800 ETFs form more than 40 providers for the new low cost with Fidelity.
"Fidelity has partnered with the leading ETF provider in the market to bring investors the best brokerage offering in the industry today," said Kathleen A. Murphy, president of Personal Investing at Fidelity Investments. "Simply put, we’re offering the broadest selection of commission-free ETFs from the undisputed ETF leader, and it's only available through Fidelity."
The new pricing model from Fidelity comes as the demand for ETFs continues to grow among investors. The trading flexibility, low costs and potential tax benefits of ETFs have spurred their growth.
In a survey taken by the retail broker has shown that more than 50 percent of active investors plan to increase their ETF trading in the next year. Global ETF assets have grown by 145 percent since 2005, now totaling more the $1 trillion.
The partnership with BlackRock will bring in the No. 1 ETF provider, as it holds 50 percent of the market share in the U.S.
"We’re very excited that Fidelity, a proven leader in the retail brokerage industry, is promoting ETFs and furthering iShares availability to investors," said Michael Latham, head of US iShares, BlackRock.
For at least the next three years Fidelity and BlackRock said they will offer trading for the 25 iShares ETFs commission-free.
The news hurt Charles Schwab (Nasdaq: SCHW) which fell 1.1 percent today, E*TRADE Financial Corporation (Nasdaq: ETFC) which was down 3.8 percent and TD AMERITRADE (Nasdaq: AMTD) which fell 3.2 percent.
Fidelity said on Tuesday that it will offer its retail customers commission-free online trades for 25 iShares funds in a partnership that has been made with BlackRock.
The global leader in Exchange Trade Funds also announced that it has cut its online U.S. equity trade commissions to a flat rate of $7.95 for all customers, no matter the trading level. The program starts on Wednesday.
"Our new $7.95 online commission is a great value and will automatically reduce and simplify trading costs for millions of investors, whether they place hundreds of trades per year with Fidelity or just a handful," said James C. Burton, president of Fidelity’s retail brokerage business.
The commission-free offering is for all online buy and sells orders through the company’s online and wireless channels. The program will be made available to the current 12 million brokerage accounts with Fidelity and will reduce some customers’ commissions by as much as 60 percent.
Investors will have the ability to trade more than 800 ETFs form more than 40 providers for the new low cost with Fidelity.
"Fidelity has partnered with the leading ETF provider in the market to bring investors the best brokerage offering in the industry today," said Kathleen A. Murphy, president of Personal Investing at Fidelity Investments. "Simply put, we’re offering the broadest selection of commission-free ETFs from the undisputed ETF leader, and it's only available through Fidelity."
The new pricing model from Fidelity comes as the demand for ETFs continues to grow among investors. The trading flexibility, low costs and potential tax benefits of ETFs have spurred their growth.
In a survey taken by the retail broker has shown that more than 50 percent of active investors plan to increase their ETF trading in the next year. Global ETF assets have grown by 145 percent since 2005, now totaling more the $1 trillion.
The partnership with BlackRock will bring in the No. 1 ETF provider, as it holds 50 percent of the market share in the U.S.
"We’re very excited that Fidelity, a proven leader in the retail brokerage industry, is promoting ETFs and furthering iShares availability to investors," said Michael Latham, head of US iShares, BlackRock.
For at least the next three years Fidelity and BlackRock said they will offer trading for the 25 iShares ETFs commission-free.
The news hurt Charles Schwab (Nasdaq: SCHW) which fell 1.1 percent today, E*TRADE Financial Corporation (Nasdaq: ETFC) which was down 3.8 percent and TD AMERITRADE (Nasdaq: AMTD) which fell 3.2 percent.
You May Also Be Interested In
- Susquehanna Downgrades The Trade Desk (TTD) to Neutral
- AMTD IDEA receives NYSE non-compliance notice over ADS price
- AMTD IDEA's Receipt of NYSE Letter Regarding ADS Trading Price's Below Compliance Standards
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Fidelity InvestmentsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
