Commission-free platforms for exchange traded funds are popular throughout the brokerage industry with some of the largest brokerage firms, including E*Trade, Schwab and TD Ameritrade, offering expansive of ETFs on a commission-free basis.
However, the largest commission-free lineup in the brokerage business now belongs to Firstrade Securities, Inc., which said Monday it is making more than 700 ETFs available to clients on a commission-free basis. That gives Firstrade a larger commission-free platform, in terms of number ETF offerings, than E*Trade, Fidelity and TD Ameritrade combined.
“Under the just introduced program, Firstrade investors will have a wide selection of ETFs to choose from across eight asset classes, three exchanges, 82 categories and 40 fund families,” said Firstrade in a statement. “These available ETFs are designed for long-term investors and must be held for at least 30 days (if less than 30 days, the low-cost commission is $2.95). Also included are low expense ratio ETFs from leading fund families — Vanguard, iShares, SPDR State Street and First Trust, among others. In order to minimize risk, no leveraged ETFs are being offered.”
ETF Trading Platform Rivals
Earlier this year, E*TRADE Financial Corporation (NASDAQ:ETFC) on Friday unveiled a massive expansion to its its commission-free exchange-traded fund (ETF) lineup. With the new additions, E*TRADE now offers 225 ETFs on a commission-free basis, making the broker home to one of the largest commission-free ETF platforms in the industry.
“Since August 1, 2017, E*TRADE has added 80 commission-free ETFs from seven providers to its Commission-Free ETF Program,” according to a statement. “New additions include ETFs from IndexIQ, iShares, Janus Henderson, John Hancock Investments, Legg Mason, NuShares, and PIMCO.”
Schwab ETF OneSource now offers commission-free ETFs from 16 providers, including ALPS, Deutsche Asset Management, Direxion, ETF Securities, Global X Funds, Guggenheim Investments, IndexIQ, John Hancock Investments, J.P. Morgan Asset Management, OppenheimerFunds, PIMCO, PowerShares, State Street Global Advisors SPDR® ETFs, USCF, WisdomTree and Charles Schwab Investment Management. OneSource was expanded in January.
The Firstrade commission-free platform features 703 ETFs, more than three-quarters of which have received a Morningstar Rating three, four or five stars. In September, Firstrade pared its commission for stocks, ETFs and options from $4.95 to $2.95 per trade.
In addition to ETFs from, Vanguard, iShares, SPDR State Street and First Trust, the Firstrade platform features ETFs commission-free from ARK, WisdomTree, PIMCO, Global X and VictoryShares, among others.
For more information on the ETF industry, visit our current affairs category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. 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.