TD Ameritrade has stepped in with the biggest move yet in the exchange traded fund (ETF) price wars. Not since Charles Schwab pioneered the idea of a mutual fund supermarket has something been so appealing, especially for the retail investor.
Beginning today, 101 ETFs traded on TD Ameritrade’s platform will be commission-free. This is the largest offering of commission-free ETFs the industry has seen to date, though it’s not the first. This year, Vanguard made its 47 ETFs commission-free on its platform, Schwab charges no commission on its 11 ETFs when traded on their platform and Fidelity offers free trades on 25 iShares ETFs. [5 Ways to Cut the Cost of ETF Investing.]
There’s a small catch with the free trades offered at TD Ameritrade: to take advantage, you have to hold the ETF for 30 calendar days. If it’s sold before then, TD Ameritrade’s standard $9.99 fee will be levied. [Where You Can Go for Cheap ETF Trades.]
But there’s no doubt that this market is a game-changer for the ETF industry in several ways: