Big news! As most of you know, we have chosen to use TD Ameritrade as our firm's account custodian. We originally chose them over other institutions for a wide range of reasons including their award winning technology as well as their highly rated customer service.
You may also be aware that TD Ameritrade offered more than 300 ETFs (exchange traded funds) with no transaction fees (yes, they waive the normal $6.95 trade cost for these funds) which we primarily use at our firm in our client portfolios. We do this so when changes need to be made to portfolios we can buy and sell ETFs for clients without any trading costs to you. In recent months, TD Ameritrade increased that list to over 550 ETFs with no transaction fees.
I guess they were itching to add more... so they just added them all!!!
Well, starting today TD Ameritrade will now offer $0 transaction fees/commissions/trading costs on all online or mobile US and Canadian listed stocks, ETFs, and options trades ($0.65 fee per option contract still apply with no exercise or assignment fees). Transaction costs for mutual funds and over the phone trades still apply as well. But, we do not use any of that for clients.
What does this mean for RIAG clients?
The foundation of our current portfolios are the 550+ non transaction fee ETFs, however, this announcement allows for any stock or ETF to be bought or sold for a client account with no trade cost. This is huge because for the entire history of investing there was always some sort of cost to own or buy into an investment.
Most recently, trade costs at TD Ameritrade were $6.95 per stock or ETF trade which isn't so bad considering you really do not get into or out of a stock or fund too many times in a year. However, when you start to need more like portfolio rebalancing or having to make bulk trades across multiple client accounts, it was cost prohibitive.
Now close to 2000 ETFs and 4500 publicly traded company stocks will be available with no trading costs! Funds and stocks that were not considered for certain portfolios in the past are now back in as options!
Well, over the next few days I will be putting out more information. We will spend this time to review all new available ETFs and stocks that should be considered for future quarterly portfolio updates.
All in all, great news! We appreciate everyone's continuing support and are thankful for your business. Look out for our next update early in the week. Thanks and have a great day!