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Vanguard Takes Commissions to Zero


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Photograph by Mike Mergen/ Bloomberg News

Another big-name brokerage has cut trading commissions to zero.

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Vanguard said Thursday on all online stock and options trades, as my Barron’s colleague Daren Fonda reports777彩票地址. (Vanguard will still charge a $1 fee for each options contract.) The fund giant already offered commission-free ETF trades.

The announcement isn’t a surprise as Fonda reported last week that Vanguard was expected to take the ax to stock and options commissions.

The move seems like an about-face given comments Vanguard CEO Tim Buckley made following a wave of commission slashing in the fall by discount brokerages including Charles Schwab, TD Ameritrade, and E*Trade. “We go for a different investor,” he told Barron’s in mid-November. “We’ve made the choice not to provide all the services for people who want to churn and burn their account.”

777彩票地址But Vanguard’s head of retail investing, Karin Risi, says the change was in the works for months and is part of Vanguard’s long-term mission of reducing the investment costs.

Jack Bogle, the company’s late founder, championed low-cost investing777彩票地址 using index funds, and Vanguard led the way in pruning fund fees. Yet its price leadership has been under attack from other mutual fund and ETF providers, Fonda notes.

--Ross Snel


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