Cost of Trading ETFs

Discussion in 'ETFs' started by dac8555, Aug 30, 2006.

  1. the commissions seem higher on etf's like oih i've traded
     
    #11     Aug 30, 2006
  2. gnome

    gnome

    Commissions shouldn't be higher on an ETF than any listed stock.

    All of the ETF's fees are included in the share price and are deducted *daily*... those fees + broker commissions are the "costs".
     
    #12     Aug 30, 2006
  3. dac8555

    dac8555

    Surdo,

    Thanks you confirmed what i have been thinking, i guess some of the articles i read were a bit confusing to me. Probably written by a mutual fund manager trying to justify his extistence.

    by the way i prefer "buy high..sell higher"...strangely, there is a big difference.

    suerte
     
    #13     Aug 30, 2006
  4. on a stock like oih when i hit arca i'm always paying the full .004 passthrew jsut like hitting the bid or ask on aapl
     
    #14     Aug 30, 2006
  5. ess1096

    ess1096


    Dan,

    The articles you read are probably comparing ETFs to Mutual Funds as INVESTING instruments. Many people dollar cost average into investment accounts. Using ETFs can get expensive since you would pay a commision with every deposit as opposed to depositing into a NTF mutual fund.

    Your post says "Trading ETFs", so don't worry about it.
     
    #15     Aug 30, 2006
  6. S2007S

    S2007S

    True about the mutual fund manager writting it to justify his existence.
    There are over 9000 mutual funds and close to 275-300 ETFS. ETFs are the way to go, no 12b-1 fees included, no minimums no nothing. They trade like a stock so you can sell and buy anytime throughout the day not like mutual funds.

    The market needs more ETFs.
     
    #16     Aug 31, 2006