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 for 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. 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, it 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 number 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
TD Ameritrade charges $0.00 per trade for all investors. TD Ameritrade not only offers free trades but also offers over 100 commission-free ETFs.
Robinhood – Free Trades
Robinhood doesn't offer any commission-free ETFs because all trades are free! That's right any ETF or stock you purchase within Robinhood is commission-free. Robinhood is a no-frills app-only service. If you are currently looking to trade via a web browser they currently don't offer this feature but in the works. Not only can you trade stocks and ETFs, but recently added options and cryptocurrencies into the mix.