When Robinhood first launched in 2013, the small startup revolutionized the stock brokage industry by providing commission-free trading to its customers while other major brokers such as Charles Schwab and Fidelity were nickel and diming their customers for each trade they made. Thankfully, and thank to Robinhood for taking the initiative, commissions on stock trading is a thing of past. In order to stay on a competitive level with each others, most major stock brokers were forced to offer zero commission trading for each trade.
If you would like to migrate from Robinhood, or simply want to trade with another broker that does not charge any fees, here’s a list of the top brokers you should consider…
Although Robinhood attracted a few millions of customers in a short amount time due to its commission-free trading service, no major brokerage firm bothered following Robinhood footsteps and remove their fees which each trade; Robinhood was just too small for being considered a threat to these financial giants. This was until Charles Schwab made it clear that it would be eliminating commissions for stock trading on their platform. Schwab took the initiative of being the first giant stock broker to eliminate commission fees due to the small impact those fees had on their net revenue each quarter, as reported by CNBC.
You can open a Schwab account by signing up directly from their website or by signing up through their iOS (iPhone) or Android app. Download it at schwab.com/mobile.
Another major stock broker who jumped on the commission-free trading bandwagon not too long ago was TD Ameritrade. The broker now offers free trading for any company stock or ETF on their platform. On October 2019, the brokerage firm eliminated the $6.95 fees they charged per trade, they will also gladly cover the transfer fee if you bring your stock from another broker into their platform. Although this decision sounds great for customers, chief financial officer Steve Boyle said that this will approximately remove $220-240 million per quarter of revenue from the company. TD Ameritrade was basically forced to offer commission-free trading in order to stay competitive with other brokers.
Fidelity Investments also allows you to trade stocks and ETFs without having to pay any commissions. This change came into effect on November, 2019. Fidelity Investments is known for its great customer service among traders and for its simple-to-use user interface across their apps and website. You can sign up for Fidelity at fidelity.com or through their mobile app locate at fidelity.com/mobile.
E*Trade was another broker who follow suit and got rid off their commissions. The brokage firm now offers commission-free trading for online US-listed stocks, ETFs, and options. While having a clean website and offering a mobile app for iOS and Android devices, the firm also allows you to open a checking, saving, and even invest into an IRA all within your E*Trade account. You can open an E*Trade account at us.etrade.com and download their mobile app from us.etrade.com/platforms/mobile-platforms.