TD $0 commission on US online stock and ETFs seems too good to be true. Is there any hidden fees? How do they earn with this business model? - Seedly
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Anonymous

Asked on 05 Aug 2020

TD $0 commission on US online stock and ETFs seems too good to be true. Is there any hidden fees? How do they earn with this business model?

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Nicholas B
Nicholas B
Level 6. Master
Answered on 05 Aug 2020

TDA and many other fee-free brokerages make money off $0 commission trades through order flow execution, where they receive a small payment for routing your order through a wholesaler. You can find this information in each broker's SEC Rule 606 disclosure report.

This may be disadvantageous to you, especially if you are executing large orders. In this case, you may want to consider other brokers such as IBKR Pro that do not receive payment for order flow execution and pride themselves on having significantly better price improvement than the industry average.

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Frankie Rappaport
Frankie Rappaport

05 Aug 2020

But i feel, from a pragmatic view (not a day trader but the opposite) I am very happy with TD A
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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Updated on 05 Aug 2020

No, I am an TD Ameritrade U.S. customer, no important hidden fees, it works, they made their money (mostly) not by your former trading fees but by 'order routing'. for the U.S. markets at least a lot of other Singapore brokers should follow soon. there are with TDA some, mostly irrelevant, other than trading fees.

https://www.tdameritrade.com.sg/why-td-ameritrade/pricing.html​​​

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Thank You!
Can you clarify
I wonder if
This is so helpful 👍
What about
Post