What is commission-free trading in the UK?

And the amount of commission depends on which broker, investment platform or trading app you invest with in the UK. ‘Commission-free’ trading or ‘commission-free investing’ just means the broker doesn’t charge you for the service of buying or selling shares. And the benefit is that more of your money gets spent on investing rather than fees.

Are commission-free trades a good thing for investors?

So commission-free trades are almost certainly a good thing for investors. Still, don’t necessarily think that they offer an excuse to trade more as that may hurt more than it helps.

What is a trading commission?

When you place a trade order to buy or sell stocks, bonds, exchange-traded funds, options or other securities in a brokerage account, the commission is the fee the brokerage charges for its role in completing the process. Trading commissions are just one of the various fees brokerages charge to make profits on the services they provide.

What is Charles Schwab's commission-free trading policy?

Charles Schwab will begin offering commission-free online trading for U.S. stocks, exchange-traded funds and options on October 7, the company announced Tuesday. Previously, each trade cost investors $4.95. Commission fees are charged by a brokerage when you buy or sell a stock, ETF or other type of investment product.