Normally, when investing in exchange traded funds (ETFs), there are commission fees that apply every time you buy or sell, same as with trading a stock. Recently though, some in the trading and investment community are offering free trades. Once such firm is Zecco.com, which introduced 40 free trades per month. They require no annual fee for regular accounts and require $2,500 for a start up, reports Tom M. Anderson for Kiplinger’s Personal Finance. Wells Fargo (WFC) and Bank of America (BAC) offer free trades per month as well. The catch is that "free" is defined by certain boundaries, such as how long you hold idle cash in your account. Zecco pays 1% on uninvested cash and little for market-research tools. If you are looking for lower commissions, check around and make sure you understand what constitutes a "free" trade.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.