Earlier today, I received an email from TD Ameritrade announcing their commission-free online stock, ETFs and option trades for US-exchange listed securities.
An email banner from TD Ameritrade Singapore offering commission-free trades
When I see the word free, the skeptical side of me started to kick in and I began questioning whether there might be any hidden terms and conditions – after all, nothing is really free in this world.
TD isn’t alone when it comes to commission-free trading. In fact, commission-free trading on US securities has started years ago with Robinhood – the pioneer of commission-free trading. Since then, more online brokerages such as Charles Schwab, Fidelity and E*Trade have started offering free trades.
When we see free, we react differently
Our brains tend to be wired to react differently when things are free. For example, we wouldn’t be able to judge the real value of the product or service when offered something for free....