Schwab cuts commissions to zero on US stocks, options and ETFs

Is $0 commissions for futures even possible? (beyond the Tradovate model where you pay a subscription price per month for unlimited trades) I didn't think they could sell order flow information for futures and thus there are no rebates on the back-end... In any case, they might need start cutting these commissions on futures to compete.
 
Hey, just wondering if more widow and orphan stocks (IBM, VZ, ADM, MCD) will be bought and held with the 0 commissions platform? Small value investors may choose to buy 10 shares of MCD every month...
 
RedDuke said:
I doubt we would see 0 comm on futures. Centralized exchange and small compared to equities.
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I am totally comfortable paying my commish on futures trades. My broker is inexpensive enough. A commish war between futures brokers would be very very interesting, but very destructive for said brokers I think.

If my trading comes down to make or break on commish, I need to rethink my strategy. Oi!
 
I'm guessing zero commission does not apply to exchange and clearing fees. Today (first day of zero commission) and Ameritrade charged me just under $2 per trade, which it was just under $10 yesterday (counting commission and fees) so that's an improvement.
 
El_Cubano said:
Can someone clarify that schwab is or isn't allowing use of desktop application? I've heard conflicting information.

Thought I read was just on mobile and web like IB
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" Clients, both new and existing, will be able to select between using IBKR Lite and IBKR Pro for a limited number of times. Like other competitors, Interactive Brokers will route IBKR Lite orders to market makers in exchange for order flow payments. IBKR Pro users will continue to receive the best prices the brokerage can secure via sophisticated algorithms " -- IBKR

https://finance.yahoo.com/news/interactive-brokers-announces-commission-free-220537924.html
 
Maverick2608 said:
"The retail investor is left with two choices in the current market, pay the spread, or remain unexecuted. Passively bidding for or offering stock for sale is a dead end, the opportunity no longer exists."

http://www.nanex.net/aqck2/4713.html
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It's not generally true because it's on Nanex or in "Flash Boys". They have a story to sell, for lots of stock/situations this is not how it works in practice... Effectively they're describing the worst case...
 
ironchef said:
I have trading accounts with two different brokerages, both $0 commission. I like Schwab because they seemed to be able to get me best prices and rapid execution. I often got better price than limit which is significant for options.
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You mean a limit order that is executable immediately? Because I would be surprised if a standing order on an actual venue (i.e. not "hold back" by the broker) is executed other than at it's own price.
 
trader99 said:
if you don't mind what are the names of the 2 brokerages that offer $0 commision that you use? I only have RH and TradeZero for $0 commission. For everything else(futures trading), I use IB. TradeZero has $0 commissions for OPTIONS too just like RH except TradeZero is a real trading platform as opposed to the slow mobile app that is RH. I would be super excited if TradeZero, RH, or IB start to offer $0 commission for futures since that's what I do the most(my bread and butter). Now with TradeZero, I've been scalping equities more given it costs nothing. So I'm starting to tiptoe back into active equities trading too given the zero cost structure now. Trading very liquid names and throw out more sizes but for smaller moves.
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My bank offered me $0 commission trades for years. Schwab, I twisted their arm a couple of years ago to get $0 commission.

Now most brokers offer $0 commission.
 
Saving $4.95 on an options trade doesn't mean much for a lot of us if you're still paying $0.65 per contract. Robinhood does not charge a commission OR a per-contract fee on options trades. Does TradeZero charge per contract?
 
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