Fidelity cuts online trading fees to zero, becoming the latest brokerage to make the move
- Fidelity Investments announced Thursday that it will cut fees on online stock, exchange-traded fund, and options trades to zero from $4.95.
- The decision follows a slew of other brokerages who made the move earlier in October.
- Read more on Business Insider.
The brokerage price wars continue to rage, and Fidelity Investments is getting in on the action.
The firm announced Thursday that it will cut fees for online stock, exchange-traded fund, and options trades to zero from $4.95, following in the recent footsteps of its competitors. The changes will take place October 10 for individual investors and November 4 for registered investment advisors.
The online brokerage is the latest to up the ante on the price wars shaking the industry. The rise of passive investing has pushed down the cost to trade, putting pressure on traditional brokerages to continue to add value for their clients.
Fidelity also said it will continue to automatically direct retail investor cash into higher yielding alternatives for brokerage and retirement accounts, something the firm says makes it stand apart from competitors.
"With this decision, Fidelity is taking a different path from the industry," Kathleen Murphy, president of Fidelity Investments' personal investing business, said in a press release. "We are providing customers unmatched value while challenging industry practices that appear to give value in one place when they are actually having customers pay in other ways."
Fidelity is the largest online brokerage firm with 21.8 million accounts, and has opened nearly 10,000 new brokerage accounts each trading day this year, the company said.
Read more: Dyslexic, failing at school, and partially blind: How Larry Hite overcame the odds to become one of the most successful self-made stock traders using a strategy that's 'accessible to anybody'
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