Wondering if it’s possible to buy a stock without paying a commission? Yes it is! There are quite a few ways to get free stock trades. From my research for the best stock brokers, I’ve noticed a recent trend.
Many brokers are offering free trades when signing up. If you have a large amount of cash to invest, this could help minimize your transaction fees when signing up to a new brokerage firm.
Granted this isn’t the same as our list of commission-free ETFs brokers list, or the completely free trades firms like Robinhood or LOYAL3. But the brokerage firms listed below are more feature rich services than the no frills free brokerage firms.
If you are deciding on using a broker that offers initial free trades and commission-free ETFs, you’ll want to maximize the use of both. First, invest in stocks/mutual funds/ETFs that charge a fee and use up the initial free trades. Then, once the promotion ends, use their commission-free ETFs to continue paying no fees for your trades.
It’s critical you minimize your transaction fees! Transaction costs eat into your returns, and unlike investment returns, is a known cost. The less you pay in transaction fees, the bigger your possible return of investment. Over a lifetime of investing can be a significant drag on your returns.
With the current round of free trade promotions, discount brokerages either place a limited time on their offer, limit the amount of trades you can make, or both. These are five free stock trading promotions I’ve discovered and are in no particular order. I also have highlighted the firms that offer commission-free ETFs in addition to their initial free trade offer.
- TD Ameritrade – Free Trades for 60 days (Commission Free ETFs Available)
- E*TRADE – Trade Free For 60 Days (Commission Free ETFs Available)
- OptionsHouse – 100 Commission Free Trades for 60 Days
- TradeKing – $500 in Free Trade Commissions
- TradeStation – Get 20% Off Commissions
TD Ameritrade – Free Trades for 60 days
TD Ameritrade offers up to $600 in cash, with their 60 days of free trading. Visit their website for more details. You must deposit at least $3,000, to gain access to the 60 days free trading. TD Ameritrade only allows up to 500 trades and the deposit must come from an external non-TD Ameritrade account. Offer ends on March 31st, 2017 and is only valid for new customers. TD Ameritrade not only offer free trades, but also offers over 100 commission free ETFs.
E*TRADE – Trade FREE For 60 Days
With this offer, you must deposit at least $10,000 This E*TRADE promotion is only available to new customers. Once you’ve made the deposit, you’ll get 500 commission-free trades and must be used within 60 days. The trades can be used for stock or option trades. E*TRADE also offers over 100 commission free ETFs.
OptionsHouse – 100 Commission Free Trades for 60 Days
New accounts opened with OptionsHouse will receive 100 commission-free trades for stock or options executed within 30 days of funding the new account. It is valid for IRA accounts and a deposit of $5,000 is needed to qualify for this offer. Enter 60FREE1 as the promo code when you create your new account. This coupon is set to expire on June 30, 2017. You will not receive cash compensation for any unused free trade commissions.
TradeKing – $500 in Free Trade Commissions
This offer is available to new customers and you need to deposit $500. You must enter the promo code TRADE500 to get the credit. The free trades are available for 60 days. This promotion ends March 24, 2017.
TradeStation – Get 20% off Commissions
This offer isn’t exactly free trades, but you save on each trade you make — 20% off.
TradeStation —Trade for as Low as $4.99 per Trade. Open and fund a new TradeStation brokerage account by March 31, 2017, and get up to $1,500 in commission rebates through June 30, 2017. Plus, you receive TradeStation and RadarScreen® FREE for 60 days! The minimum deposit to get in on this offer is $5,000.
|Initial Deposit||Maximum Commission Rebate|
|$5,000 – $99,999||$500|
|$100,000 – $249,999||$1,000|