Fidelity's fee increase creates opportunity for Schwab and Interactive Brokers

What?? TD doesn’t margin Ishare ETFs for 30
Days?

 

Fidelity has that still. Pretty nuts considering how many major ETFs that rules out for active trading. One rep told me they would get rid of that restriction at some point but that was a year ago.

 

Yah TD has over 100 ETFs on a list, no margin for 30 days after sold.

 

Something else at Fidelity:
Free commission offer applies to online purchases select ETFs in a Fidelity brokerage account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal).

POS...

 

I spoke to them today. No public list. Requires a case by case inquiry.

 

It is very amateurish actions by Fidelity. It is penny wise and pound foolish. They will lose business to smarter firms, who don't nickel and dime their customers.

 

It has to be a unpopular certain segment that can be gotten around. Why would you 1: get portfolio margin, 2: reduce margin req on indices if you’re going to make people hold for 30 days.

there has to be more to the story

 

Fidelity receives payment from the ETF sponsor when the client holds the ETF for 30+ days.

 

I don't know this is still true. as you can see, this article was written in May. 6, 2019, 09:15 AM (though I haven't paid attention to this. I think I should).


https://markets.businessinsider.com...covering-90-morningstar-categories-1028171757

May. 6, 2019, 09:15 AM


"Short-Term Trading Fee (Holding Period for 30 Days). ETFs available commission-free that participate in the ETF Market Center may be subject to a holding period that commences with any purchase and extends through the following THIRTY (30) calendar days. An account owner must hold all shares of an ETF position purchased for a minimum of THIRTY (30) calendar days without selling to avoid a short–term trading fee where applicable. There is no limit to the number of purchases that can be effected in the holding period. Any order to sell within THIRTY (30) calendar days of last purchase (LIFO – Last In, First Out) will cause an account owner's account to be assessed a short–term trading fee of $13.90, where applicable. For the purposes of calculation, the day of purchase is considered Day 0. Day 1 begins the day after the date of purchase. The short–term trading fee may be applicable to each purchase of each ETF where such ETF is sold during the holding period. The short–term trading fee may be more than applicable standard commissions on purchases and sells of ETFs that are not commission-free."

 

You have to talk to the margin team, regulars customer service people at TD often do not know about this list. I spoke to several ppl at TR and confirmed this.