Author Topic: IMPACT OF FREE TRADING?  (Read 2115 times)


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« Reply #10 on: January 10, 2020, 10:04:40 AM »
A behavior change I've noticed in myself is that I sell options closer to expiry.

It used to be for options contracts that only had small premiums, that the commission would take out a huge chunk of the return if I wanted to roll a contract before expiry OR if I was selling contracts on low-$ positions.

Now that commissions are zero, I trade near-expiry options way more frequently.

If other market participants are doing this too, I would imagine the spread between short-dated and long-dated options might narrow.


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« Reply #11 on: January 10, 2020, 04:37:30 PM »
For those who care. Vanguard finally joined commission free trading on equities. Also looks like they will finally update their online experience (about time).

I really like Vanguard's dilapidated look (though sometimes I get the updated screen edition and it looks worse). I keep my core holdings there and the interface is so clunky it pains me to even think about trading on it. This is probably the reason why I haven't had many sell transactions on Vanguard over the years and that portfolio has been outperforming my actively managed account by a wide margin.  I guess, I'm glad that the fees are now 0.  :)

I like the way you think.
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