Fidelity Investments has joined its biggest competitors in offering zero commission trading while the brokerage industry continues its low fee makeover.
The company tweeted that it has eliminated commissions on all industries involving stocks, options and exchange-traded funds, a burgeoning $ 4 trillion industry that has done about the way Fidelity and its peers do business.
In the final chapter of an ongoing tax war, Charles Schwab, E-Trade, TD Ameritrade and Interactive Brokers recently announced that they were dropping the trading commissions. The news sent shares in the companies that expired as the revenue drivers for the companies became even cloudier.
Fidelity boasts $ 2.46 trillion in assets it manages for clients and has 21
"With this decision, Fidelity is taking a different path from the industry," Kathleen Murphy, president of Fidelity Investments & # 39; personal investment business. said it in a statement. "We give customers unparalleled value while challenging industry practices that seem to provide value in one place when they actually make customers pay in other ways."
While competitors, especially Schwab, gave high-profile announcements when they eliminated trade commissions, Fidelity chose to go with the lower key.
In the statement, the company said it would also automatically transfer client money to more return accounts in the money market and offer zero payment for order flow on where it sends its trades for execution.
"We made this decision after careful consideration of our customers and made sure we met their full needs," Murphy added.