The exchange traded fund industry’s competitive landscape continues to grow as more fund sponsors enter the market and slash expense ratios to attract a larger customer base. However, expense ratios aren’t the only costs when it comes to investing in ETFs.
To attract trading volume, a few brokerage houses have promised to offer commission-free ETF trades.
Here is a sampling of some of the players offering commission-free ETFs, including Charles Schwab, Fidelity, TD Ameritrade, Vanguard, and more recently Scottrade.
In the last quarter of 2010, Schwab launched its first ETFs and started advertising commission-free trades on its ETFs. The company started off with a selection of ETFs that cover Treasuries, TIPs, and domestic and international equities. The brokerage firm continues to build upon its ETF lineup and is working on ETF-based 401(k)s. [Schwab Sees Growth in ETF Business.]
Fidelity has an agreement with iShares to offer commission-free ETF trades on some of the most popular iShares funds, and the firm also offers free trades on its own ETF. [The ETF Price War Goes to Another Level.]