Interactive Brokers Introduces Free Stock Trading
Interactive Brokers Group (NYSEMKT: IBKR) has always been one of the lowest-cost electronic brokers in the industry, and now it's taking that to its logical conclusion.
The company just introduced a website called IBKR Lite that will offer customers commission-free trades and permits investing with no minimums or inactivity fees, beginning this month. Incidentally, a few days after IBKR's announcement, national broker Charles Schwab (NYSE: SCHW) followed suit, saying it will be ending commissions on U.S. stocks, ETFs, and options trading.
The move highlights just how competitive the electronic trading business is and how much investing has changed over the last decade. Some newer upstart rivals like Robinhood have been offering free online trades on stocks, ETFs, options, and cryptocurrencies for several years now. But Interactive Brokers is the first major brokerage to offer a free trading platform and highlights that the industry may have better ways to make money than charging commissions. Now, it appears the entire industry may be following this trend.
Source Fool.com
