Investing

US trading fees are comparable to Canada if not higher. Why?

  • Last Updated:
  • Apr 17th, 2016 8:01 pm
Tags:
None
[OP]
Deal Addict
Sep 5, 2010
2330 posts
363 upvotes
Toronto

US trading fees are comparable to Canada if not higher. Why?

In the US, almost everything is cheaper than in Canada. That we agree on....


But I just did a quick search to see what they pay in trade fees for stocks, on 4 different discount brokerages (Ameritrade, E-Trade, Fidelity, Scottrade) and I was shocked to find out they pay almost the same as we pay here.

-The first was Fidelity, where you pay $7.95 per online trade, which is not too bad.

-For E-Trade, you pay $9.99 per trade (or $7.99 for +150-1499 , $6.99 1500+)

-On Ameritrade, you pay $9.99 per online trade...

-Scottrade , was actually the cheapest, at only $7 per trade, but still higher than some of our cheap discount brokerages here in Canada like Questrade, Interactive Brokers and others.....


I am sure there are many other discount brokerages, but these 4 are pretty common and popular. Some of these did offer free ETF trading and other perks, but my research was strictly on online trading fees.

I am with RBC Direct Investing, which is a lot more expensive that Questrade, but the $9.95 I pay per trade is still cheaper than what you woiuld pay with E-Trade or Ameritrade.
My Signature is empty. My signature space is not for sale. You may not contact me to advertise your RFD-related activities here. I repeat, this signature-space is not for sale, unless it is a ......day
6 replies
Sr. Member
Aug 1, 2006
993 posts
85 upvotes
I was asking myself the same. And couldn't find an explanation - other than a higher regulatory context in US and monopolistic situations?
I was keeping a list of all significant online discount brokers somewhere, some more obscure than the others, and if I recall correctly, the cheapest was to the tune of $5.00
Hope to find my list.
Newbie
Mar 16, 2015
99 posts
40 upvotes
Edmonton, AB
There is a app or site called Robinhood that allows US residents to buy and sell US Stocks and ETF commission free. They state they make their money off of uninvested cash sitting in the customers accounts. I think they are expanding globally too, Australia seems to be the first.
Deal Fanatic
Jun 3, 2009
5106 posts
1052 upvotes
Montreal
IB seems to be the way to go over there.
Deal Addict
May 28, 2006
2389 posts
181 upvotes
cn_habs wrote: IB seems to be the way to go over there.
IB in the US seems to be lower commission than Canada's IB and margin interest rate is lower too. $0.005/share compared to Canada's $0.01 on fixed commission. US tiered $0.0035/share on first 300,000 shares than $0.002/share all the way down to $0.0005/share.
Deal Fanatic
Jun 3, 2009
5106 posts
1052 upvotes
Montreal
Psycho44 wrote: IB in the US seems to be lower commission than Canada's IB and margin interest rate is lower too. $0.005/share compared to Canada's $0.01 on fixed commission. US tiered $0.0035/share on first 300,000 shares than $0.002/share all the way down to $0.0005/share.
It also charges the least spread for FX unlike other online brokers.

Top