Before you were paying a few dollars each time you placed a trade, now that cost is zero, though a few hidden costs of free trading may remain. As a rule of thumb you wanted to keep your in-and-out trading costs to about 0.5% of any position. This makes the one free lunch in investing, diversification, a lot easier to achieve for smaller investors. Examine A Broader Range Of ETFsAnother indirect impact of the broad move to commission free trading is that there's a knock-on impact for the ETF industry. So, the rise of commission free trading is generally a good thing for investors, especially smaller investors who found commissions were a large part of their investing costs.

Source: Forbes October 14, 2019 01:41 UTC