Comments on: Schwab is Introducing ETFs That Trade Commission-Free http://allfinancialmatters.com/2009/11/05/schwab-is-introducing-etfs-that-trade-commission-free/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 21:48:35 +0000 hourly 1 http://wordpress.org/?v= By: Lucas http://allfinancialmatters.com/2009/11/05/schwab-is-introducing-etfs-that-trade-commission-free/comment-page-1/#comment-440420 Lucas Thu, 05 Nov 2009 22:36:27 +0000 http://allfinancialmatters.com/?p=4206#comment-440420 OK. Read the prospectus. The fund(s) will pay a 12b(1)fee of .25% starting a year from now which will far exceed the discount (online) brokerage commission rate. In addition trading (internal brokerage commissions) will reduce net assets. Let's be honest. Schwab will have opportunities to make money at many, many points; advisory fees, brokerage fees, distribution fees, you name it. Smoke & mirrors at best. @Collections: They're in business to make money by taking money out of your account. It's the business model. Your loss is their gain. PT Barnum. OK. Read the prospectus.

The fund(s) will pay a 12b(1)fee of .25% starting a year from now which will far exceed the discount (online) brokerage commission rate. In addition trading (internal brokerage commissions) will reduce net assets. Let’s be honest. Schwab will have opportunities to make money at many, many points; advisory fees, brokerage fees, distribution fees, you name it. Smoke & mirrors at best.

@Collections:
They’re in business to make money by taking money out of your account. It’s the business model. Your loss is their gain.

PT Barnum.

]]> By: Collections Man http://allfinancialmatters.com/2009/11/05/schwab-is-introducing-etfs-that-trade-commission-free/comment-page-1/#comment-440418 Collections Man Thu, 05 Nov 2009 20:44:53 +0000 http://allfinancialmatters.com/?p=4206#comment-440418 They are in business to make money. This is just part of the cost of doing business. Not all firms are created equal. Just because of an issue with one firm you shouldnt loss faith. Simple research can solve most problems They are in business to make money. This is just part of the cost of doing business. Not all firms are created equal. Just because of an issue with one firm you shouldnt loss faith. Simple research can solve most problems

]]> By: JLP http://allfinancialmatters.com/2009/11/05/schwab-is-introducing-etfs-that-trade-commission-free/comment-page-1/#comment-440417 JLP Thu, 05 Nov 2009 19:27:06 +0000 http://allfinancialmatters.com/?p=4206#comment-440417 I mentioned the spreads because I knew if I didn't that someone would and I would be criticized for not posting that information. Lucas, firms have to make money, do they not? I mentioned the spreads because I knew if I didn’t that someone would and I would be criticized for not posting that information.

Lucas, firms have to make money, do they not?

]]> By: Rick Francis http://allfinancialmatters.com/2009/11/05/schwab-is-introducing-etfs-that-trade-commission-free/comment-page-1/#comment-440416 Rick Francis Thu, 05 Nov 2009 19:22:09 +0000 http://allfinancialmatters.com/?p=4206#comment-440416 I think it's a great perk for Schwab account holders. Are there any brokerages that don't have spreads? I've never heard of one. I would think they would have enough volume that the spread will be pertty small too. Sounds like I need to look into a Schwab account! -Rick Francis I think it’s a great perk for Schwab account holders. Are there any brokerages that don’t have spreads? I’ve never heard of one. I would think they would have enough volume that the spread will be pertty small too. Sounds like I need to look into a Schwab account!

-Rick Francis

]]> By: Lucas http://allfinancialmatters.com/2009/11/05/schwab-is-introducing-etfs-that-trade-commission-free/comment-page-1/#comment-440414 Lucas Thu, 05 Nov 2009 19:11:43 +0000 http://allfinancialmatters.com/?p=4206#comment-440414 "Of course, free doesn’t mean that they won’t have spreads—the difference between the bid and ask price" Schwab will make their money like all the firms do, by hiding their profit through opaque products. I lost faith in these firms some time ago. Doing business with them is just giving them a license to steal from you. PT Barnum said it most famously. “Of course, free doesn’t mean that they won’t have spreads—the difference between the bid and ask price”

Schwab will make their money like all the firms do, by hiding their profit through opaque products. I lost faith in these firms some time ago. Doing business with them is just giving them a license to steal from you. PT Barnum said it most famously.

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