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Are Commissions Included in Transactions?

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Q: Are Commissions Included in the ETFOptimize Transactions? 

A: We no longer include commissions on trades.

The average commission charged by online brokers on ETF trades has steadily decreased, from $75 in the 1980s to $19 per trade in 2000 to $9.95 in 2010, and then to $4.95 around 2015.  

Then, in October 2019, we eliminated the commissions used in all of our strategies when virtually all major brokers dropped their commissions on stock and ETF trades.

Changes to commission costs can be substantive to overall performance when compound interest is taken into consideration over long periods of time. Commissions costs have plummeted by 100% in 20 years, which can have a significant impact on the bottom line of an investment approach over many decades.

If you are charged commissions, do your homework and use it to your advantage when discussing commissions with your broker. Information is power! 

 

 

 
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