TradeStation Joins Zero-Fee Race Among US Stock Brokers
- Considering the bar set by Interactive Brokers, TradeStation’s response might be all the rest of the industry can do.

Commission-free trading appears to be the trend that isn't going away, and TradeStation Securities is the latest company to join the race to the bottom. To stay competitive, the US broker-dealer arm of Japanese financial services giant Monex Group is slashing its brokerage fees on stocks, options, and ETFs to zero.
Charles Schwab, E*TRADE, and TD Ameritrade also announced the same commission-free cost structure.
Starting Monday, Schwab is dropping its $4.95 commission while TD Ameritrade is also ending its $6.95 commission, effective today. E*TRADE quickly responded yesterday by saying it too would eliminate commissions for online stock, ETF, and option trades. The changes will apply to securities on Canadian exchanges, as well.
Considering the bar set by Interactive Brokers last week, which beginning next week removes commissions on virtually the entire Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term-traded products, TradeStation’s response might be all the rest of the industry can do.
"By offering commission-free trading to our customers on our web and mobile platforms, we're breaking down yet another wall to help traders access the markets," said John Bartleman, President of TradeStation Group.
Robinhood closing in on big rivals
The stock-trading business model of those financial giants now resembles Robinhood’s model, which makes money from interest on customer accounts, securities lending, and a small amount from payment for order flow.
Earlier this year, the no-fee investing app launched its latest round of funding, bringing in $323 million at a $7.6 billion valuation.
When it comes to valuation, Robinhood also doesn’t pale in comparison to E*Trade, which is currently valued at nearly $8.5 billion.
Commission-free trading appears to be the trend that isn't going away, and TradeStation Securities is the latest company to join the race to the bottom. To stay competitive, the US broker-dealer arm of Japanese financial services giant Monex Group is slashing its brokerage fees on stocks, options, and ETFs to zero.
Charles Schwab, E*TRADE, and TD Ameritrade also announced the same commission-free cost structure.
Starting Monday, Schwab is dropping its $4.95 commission while TD Ameritrade is also ending its $6.95 commission, effective today. E*TRADE quickly responded yesterday by saying it too would eliminate commissions for online stock, ETF, and option trades. The changes will apply to securities on Canadian exchanges, as well.
Considering the bar set by Interactive Brokers last week, which beginning next week removes commissions on virtually the entire Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term-traded products, TradeStation’s response might be all the rest of the industry can do.
"By offering commission-free trading to our customers on our web and mobile platforms, we're breaking down yet another wall to help traders access the markets," said John Bartleman, President of TradeStation Group.
Robinhood closing in on big rivals
The stock-trading business model of those financial giants now resembles Robinhood’s model, which makes money from interest on customer accounts, securities lending, and a small amount from payment for order flow.
Earlier this year, the no-fee investing app launched its latest round of funding, bringing in $323 million at a $7.6 billion valuation.
When it comes to valuation, Robinhood also doesn’t pale in comparison to E*Trade, which is currently valued at nearly $8.5 billion.