Investors play the stock market in the hopes of increasing their wealth but often find the commissions they must pay on trades are slowing their progress. Although these fees appear reasonable on the surface, over time they add up and take away from the investor’s overall portfolio. When a person is just starting, even a fee of $10 per trade is significant.
Furthermore, when one stops to think about it, buying a $100 share in a company when a $10 fee must be paid means the share must increase by a minimum of ten percent for the investor to break even. The more a person purchases in a single transaction, the less he or she will pay in fees as a percentage. Nevertheless, this means investors may miss out on some great deals if they have to wait until they have the funds to make a big purchase and offset the cost of the transaction.
Fortunately, there are ways to avoid these fees. Certain brokerages now allow investors to trade stocks with no fee. Investors need to take advantage of this whenever possible. What are the benefits of fee-free trading and why is TradeZero a preferred stock trading platform today?
The Benefits of Fee-Free Trading
The obvious benefit of trading stocks for free is the investor has more funds to purchase stocks. Men and women often don’t realize how much small commissions add up over time. This is especially true for those people who choose to invest money every paycheck or on a schedule such as this. With fee-free trading, the person can do so without having a large portion of his or her money eaten up by commission fees. A person can buy just a few dollars worth of stock any time he or she has the funds available.
In addition, investors often find they can choose to take their dividends and reinvest them for free. Most platforms now allow for this. The benefit for the investor is that they can boost their long-term returns with little effort on their part.
Why should a person choose to invest with TradeZero? With many fee-free trading platforms to select from, why is this the preferred choice? There are a number of reasons investors choose this company over the many others available today.
Stock trading is commission-free, and investors obtain access to the United States stock and options market. The platforms are in real-time and individuals choose between streaming web and mobile trading options. Furthermore, the investor may trade between the hours of 4AM to 8PM, even when the markets are closed for the day.
Hard to borrow stocks can be obtained with the help of TradeZero, which investors appreciate, and customers have access to live support around the clock.
Additional Benefits of Working with TradeZero
Individuals using the TradeZero platform receive access to a stock’s price action, including in-depth information. Choose level 2 and receive a ranked list of the best bid and ask prices. In addition, investors obtain real-time alerts for those stocks breaking their day highs and lows along with those that are breaking their 52-week highs and lows.
The breaking news scroll ensures platform users know exactly what is happening at any given time. They can make timely decisions knowing they have the latest information. Furthermore, the dynamic charting is of great help when these decisions must happen rapidly.
Investors wishing to trade on the NYSE, AMEX or NASDAQ find they can do so with TradeZero. There is a $0 commission as long as the symbol trades on one of these three markets and is priced $1 or greater.. However, investors need to be aware that the SEC and FINRA fees might apply. Investors find they can track their order history easily with the help of this software as well.
Investors wishing to trade OTCBB, PINK sheets or stocks under $1 pay $0.0002 per share, and the same is true for those trades conducted between the hours of 4:00AM EST and 7:00AM EST. The fees apply to those OTCBB and PINK Sheet trades greater than $0.10 and securities that trade for less than $1. Furthermore, investors wishing to buy or sell securities not traded on the AMEX, NASDAQ and NYSE can make use of this method to complete their transactions.
Every person making use of TradeZero needs to understand additional fees may be charged based on the type of transaction completed. Hard to borrow short locates are charged a fee at cost, and those hard to borrow overnight shorts come with a fee of seven times the market rate cost for one night. Additional days will be charged at one time the market rate. Furthermore, hard to borrow overnight short positions with odd lot positions are rounded up to the nearest hundred.
Margin debit interest comes with a fee equal to the Fed Funds Rate plus 300 bps, something the company only recently implemented. The TAF is $0.000119 per share and is assessed only on the sell side while the SEC fee is 0.0000207 x dollar amount and is likewise only assessed on the sell side. Investors pay an NSCC fee of $0.00003 per share, with a $0.18 maximum and $0.033 minimum. Finally, be prepared to pay a FOCUS fee of $0.0000007 per share and a SIPC fee of $0.000015 per share.
For those investing $50,000 or more, premium-level service is offered. With this option, investors obtain a 100 percent free trading platform, a reduced margin interest, discounted short locates and more. TradeZero looks to serve investors at every level and does so with great success.
Other platforms offer free trading all or some of the time. Investors should consider all options to find the one that best meets their needs. Following are some additional ways an investor can trade stocks with no associated cost. However, be aware of the drawbacks seen with each platform, as the cost could be more than an investor anticipated when signing up.
Loyal3 is an additional option for investors wishing to obtain fee-free trading. Nevertheless, there are drawbacks to using this platform that aren’t seen when a person works with TradeZero. For example, the investor must choose to buy stock from one of 66 companies, as these companies have reached an agreement with Loyal3 to pay any fees associated with the transaction. This limits the investor’s choices.
In addition, investors need to be aware that trades aren’t completed immediately. Loyal3 pools the orders collected throughout the day and executes the trades once or twice each day. This may lead to an investor paying a different price than they were shown when the order was placed.
Robinhood likewise offers fee-free trading for investors. However, be aware that fee-free investments cannot involve a broker or foreign-listed security. To complete a broker-assisted trade over the phone, investors pay $10. When a foreign-listed security is selected, the cost per trade is $50. These fees can quickly add up, and these exceptions to fee-free trading are one reason many investors prefer TradeZero. In addition, margin or “Gold” accounts will cost users $10 a month for that privilege.
Promotions by Fee-Based Brokers
Another way to save on trades is to take advantage of promotions offered by traditional online brokers. An investor might need to establish an account with a certain amount of money or add to an existing account to take advantage of the free trades, however. The promotion typically depends on the broker selected and the amount of money available for investing. This is not a concern when investors work with TradeZero.
Other Fee-Free Trading Options
An investor might also find they can obtain additional shares of a company by contacting the company directly after they have made their initial stock purchase using a broker. Numerous companies now offer this option, known as a dividend reinvestment plan (DRIP), which involves obtaining additional shares or fractional shares by reinvesting any dividend payments in more stock as opposed to obtaining a cash payout.
These programs might offer additional benefits, such as allowing the investor to obtain stocks at a discount or purchasing additional shares using cash instead of reinvested dividends. However, only the registered stock owner can participate in these types of programs. In addition, the terms and conditions of the DRIP need to be carefully reviewed, as some companies charge a fee for trades. Others allow investors to make their initial investment directly.
Research all fee-free investment options to find the one that is right for you. Many investors are discovering this company is TradeZero, as it offers more options than competitors and the fees are clearly laid out. Men and women invest money to make money, and TradeZero allows them to do so with no hassle, commission-free stock trades and extended fee-free trading hours. This is one company every investor should investigate.
The content provided here is solely for informational and educational purposes and does not constitute an offer to sell or a solicitation to buy any security or instrument which may be referenced upon the site, or an offer to provide advisory or other services by TradeZero in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. Investors are advised not to rely on the information contained in this writing to make an informed investment or financial decision. TradeZero explicitly disclaims all liability for any action taken based on any information contained in this writing.