Brokerage Firms That Offer Free Trades
If you're paying too much in commissions at your current broker, you have found the right article. We're going to show you where you can pay $0 in commissions. That's right, there are several brokerage houses that actually have no trading fees; and it's not just Robinhood. This article will show you how to buy and sell securities while paying zero commissions.
This broker offers zero-dollar commissions on a limited number of stocks. There is a maximum investment of $5,000 per month, with a $2,500 limit on non-IPO equities. The firm takes all customer order requests and combines them into one daily order, which reduces its trading costs. The downside of this obviously is that your order may not, and probably won't, execute when you submit it. This could cause the execution price to differ, perhaps significantly, from where you submitted the order.
Fractional shares can be purchased at Loyal3. In fact, the minimum purchase amount with the broker is just $10. You can buy a stock like Apple or Tesla, both of which trade above $100, for just $10 and hold a fraction of a share. Fractional shares cannot be transferred to the firm, however. IPO's are also available at Loyal3.
While the broker appears attractive in some ways, it isn't currently accepting new account applications. It does have a waiting list, however. You can submit your e-mail address and Loyal3 will contact you when it begins accepting new traders again.
Read Loyal3 account review.
Robinhood $0 Stock Trades
One of the better known brokers to offer free commissions is Robinhood. Stock and ETF transactions are always $0. Trading takes place on the broker's mobile app because it doesn't have much of a website. Charting on the app is fairly basic, with no drawing tools or technical studies.
Customer service is available only during market hours, and the company's phone number isn't toll-free. Robinhood does not respond to e-mails in a timely fashion. Even worse, options and mutual funds cannot be traded with the broker.
Despite the disadvantages, the broker is trying to improve. It recently launched a unique margin account called Robinhood Gold. It costs a flat $10 per month.
Read RobinHood account review.
Merrill Edge No Commission Trades
Believe it or not, Merrill Edge offers commission-free trades in some cases. Even better, this broker doesn't skimp in other areas like Robinhood and Loyal3. Investors who have at least $25,000 in cash deposits in a Merrill securities account receive 30 free trades per month. That's 360 free trades a year! Both retirement and non-retirement accounts are eligible for this enticing offer.
Unlike Robinhood, Merrill Edge does offer trading in options. However, the broker does not offer free commissions for any account size.
Because Merrill is owned by Bank of America, the broker also offers its on-going commission special to bank customers who have the same amount in deposit accounts. Preferred Rewards Platinum clients also are eligible for the thirty free trades. To achieve this level, you have to have at least $50,000 in assets in combined Merrill Edge, Merrill Lynch, and Bank of America accounts.
Advancing to the next level, Preferred Rewards Platinum Honors, qualifies for 100 free trades every month. This tier requires $100,000 and comes with a host of other lucrative benefits, such as bank fee rebates and better interest rates on deposit accounts.
Read Merrill Edge account review.
Vanguard $0 Commission For Wealthy
While Vanguard charges up to $20 per equity trade for small accounts, clients with deep pockets can receive $0 trades. Customers with more than $1,000,000 invested in Vanguard mutual funds and ETF's qualify for 25 free trades per year. After the 25, the commission is just $2. For wealthier clients (above $5,000,000 in assets), the company hands out 100 free trades every year.
Keep in mind that Vanguard always provides free commissions when trading any of its mutual or exchange-traded funds. These include 55 ETF's and over 100 mutual funds.
Read Vanguard account review.
TradeKing Free Trades
While TradeKing's standard equity commission is only $4.95, the broker nevertheless offers new customers free trades for 2 months. Depositing $500 into a new account garners 100 free trades, while a $5,000 deposit qualifies for $1,000 in commission credit. The promo for the first offer is TRADE500, while the second is FREE1000.
The new account must be opened by April 28, 2017, and the required funds must be deposited within 30 days. The commission credits can be used to pay for per-contract derivative fees, but not assignments and exercises.
The offer is not valid for current TradeKing clients or anyone who has had an account with the broker in the past 30 days.
Be aware that TradeKing has a hefty $50 inactivity fee that is applied to a new account after it's been open for 12 months.
Read TradeKing account review.
Get $1,000 in free trade commissions at TradeKing.
TD Ameritrade No Commission Trades
New clients of TD Ameritrade can receive commission-free trading for 60 days. The broker requires a deposit of at least $3,000 to qualify for the special. The new funds must remain with TD Ameritrade for at least one year. This promo would be a good opportunity to try out the firm's excellent trading technology and customer service.
The special has a limit of 500 trades, and they can be used for stocks, ETF's, and options. However, per-contract, assignment, and exercise fees are extra.
In addition to the free trades, new customers can also earn a nice cash bonus. A $25,000 deposit qualifies for a $100 prize. A quarter of a million dollars earns the firm's highest award of $600.
TD Ameritrade also has 101 ETF's and more than 3,700 mutual funds that can be bought and sold without paying a dime in commissions.
Read TD Ameritrade account review.
Promotion link: Trade free for 60 days + get up to $600.
Investors who just can't handle paying for trades can find what they're looking for at several firms. For on-going commission-free trading, Robinhood
looks like the best choice. Wealthy clients who don't trade very often would be best served at Vanguard, while small investors can make little
purchases at Loyal3. TradeKing would be a good choice for short-term trading, while TD Ameritrade offers top trading tools and the best overall package.
Updated on 4/6/2017.