By Anil K. Ambastha and Kuldip K. Ambastha
On September 26, Interactive Brokers (IBKR) announced a new IBKR Lite service effective from October that will feature unlimited, commission-free trades of U.S.-listed stocks and exchange traded funds (ETFs) along with no account minimum or inactivity fee. This news caused only a mild reaction on September 26 when the stock prices of major discount brokerage firms such as Interactive Brokers (IBKR), Charles Schwab (SCHW), E-Trade Financial (ETFC), and TD Ameritrade (AMTD) dropped by 0.4%, 2.2%, 4.8%, and 6.5%, respectively. But on October 1, it was a completely different story when the stock prices of Interactive Brokers (IBKR), Charles Schwab (SCHW), E-Trade Financial (ETFC), and TD Ameritrade (AMTD) dropped by 9.4%, 9.7%, 16.4%, and 25.8%, respectively. All of these major discount brokerage firms announced their own commission-free trade programs this week following the lead of Interactive Brokers’ announcement of September 26. What a week it was for the investing public – absolutely amazing!
Keywords – Interactive Brokers, IBKR, Charles Schwab, SCHW, E-Trade Financial, ETFC, TD Ameritrade, AMTD, commission-free trade, discount brokerage firm, IBKR Lite, exchange traded fund, ETF, account minimum, inactivity fee.
Disclosure – The principals of Ambastha Financial LLC have no positions in IBKR, ETFC, and AMTD, and no equity position in SCHW. They do have a short option position in SCHW. The clients of Ambastha Financial LLC have no positions in IBKR, SCHW, ETFC, and AMTD.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2019 – Ambastha Financial LLC.