TradeStation Joins Zero-Fee Race Among US Stock Brokers

Commission-free trading appears to be the trend that isn't going away, and TradeStation Securities is the latest company to join the race to the bottom. To stay competitive, the US broker-dealer arm of Japanese financial services giant Monex Group is slashing its brokerage fees on stocks, options, and ETFs to zero.

Charles Schwab, E*TRADE, and TD Ameritrade also announced the same commission-free cost structure.

Starting Monday, Schwab is dropping its $4.95 commission while TD Ameritrade is also ending its $6.95 commission, effective today. E*TRADE quickly responded yesterday by saying it too would eliminate commissions for online stock, ETF, and option trades. The changes will apply to securities on Canadian exchanges, as well.

Considering the bar set by Interactive Brokers last week, which beginning next week removes commissions on virtually the entire Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term-traded products, TradeStation’s response might be all the rest of the industry can do.

"By offering commission-free trading to our customers on our web and mobile platforms, we're breaking down yet another wall to help traders access the markets," said John Bartleman, President of TradeStation Group.

Robinhood closing in on big rivals

The stock-trading business model of those financial giants now resembles Robinhood’s model, which makes money from interest on customer accounts, securities lending, and a small amount from payment for order flow.

Earlier this year, the no-fee investing app launched its latest round of funding, bringing in $323 million at a $7.6 billion valuation.

Hitting more than 5 million users isn’t the only milestone for Robinhood. The company has reportedly attracted more than $170 billion in transaction volume since its introduction. The impressive metrics mean that the New York Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c Read this Term has been able to bring on nearly as many customers as E*Trade, which has been in the online brokerage industry since 1982.

When it comes to valuation, Robinhood also doesn’t pale in comparison to E*Trade, which is currently valued at nearly $8.5 billion.