Free trading thru Fidelity 401k's.

S

seasideheights

I was browsing around & noticed that Fidelity offers FREE trading for up to a year (depending on account balance) for 401k accounts.

Where do they make money doing that?

My guess is skimming a bit from the uninvested cash balances.

Does anyone have a 401k with them? What's the deal?
 
Quote from jimrockford:

I've said it before, and I'll say it again.

Nothing is free.
More...

Really? If my memory does not fail me, in another thread, this ET member repeately charged other ET members who were trying to share opinions with strongly worded accusations.

Thread is here:

http://www.elitetrader.com/vb/showthread.php?s=&threadid=118256&perpage=6&pagenumber=10

I hope that this person now realizes that voicing an opinion has nothing to due with accusing a broker with anything. I have not looked at the Fidelity offer, and therefore cannot judge it, but one has to be consistent if one is to be trusted.

I am interested to know more about the Fidelity's free trading offer. Could we buy on the bid and sell on the offer?
 
Quote from seasideheights:

I was browsing around & noticed that Fidelity offers FREE trading for up to a year (depending on account balance) for 401k accounts.

Where do they make money doing that?

My guess is skimming a bit from the uninvested cash balances.

Does anyone have a 401k with them? What's the deal?
More...

https://scs.fidelity.com/other/offe...=00233&banner=homepage&psite=homepage&refhp=c

You have to roll over your 401-K into an IRA.

See the fine print. Essentially you get up to 60 or up to 100 free equity trades (as defined in the fine print) for a deposit of at least $25,000.

The object of the game for Fidelity or any brokerage firm is to get as much assets under management. Thus, the brokerage firm can earn money from commissions, fees, and interest.

Yes, your uninvested cash balances will be placed in a money market account (Fidelity Cash Reserves for retirement accounts). Fidelity, will earn a few basis points from this.
 
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