All customers get 100 free stock or ETF trades in the first year, an offer that becomes permanent for those with Premier-level bank accounts, which require a combined $15,000 held at the bank.
Those with Chase Private Client, a higher account that typically requires at least $100,000 in holdings, get unlimited trades. The bank is currently considering adding other tiers that would incentivize people to pull money from other brokerages.
he number of free trades a user has left is prominently displayed on the app. Keough said that most investors don’t typically need more than 100 trades a year, but if they exceed that amount, they’ll be charged $2.95 per trade, which still undercuts most rivals.
Do people really trade that much? I think the most I’ve ever done in a year was like 8 or so, definitely less than 10. So less than $40 with my broker.
lol good point. but this means you can diverisfy more with a small amount of money. i mean right now the average is 8k/trade size for 8 bucks. if it was free or at 3 bucks, trade size will prolly drop to 3k.
a lot of people think that trading more means earning more for some reason. they buy into the theory that they, as some shmuck working as a comp sci guy have more insight than everyone in the world. my little bro is like this and his portfolio is like 85% tech companies. he trades around earnings and essentially treats it like a casino where they dont give you free booze.
that said most of those people use robinhood anyway because its free trades
Most people will not come close to 100 trades a year. I guess the charge after that is to prevent the handful of high frequency traders who will exploit the system otherwise.
Also, $15k is “premier” and $100k “private client”? Who opens a brokerage account without $15k? I guess that is the point.
back in my prior career, one of my coworkers asked me if he could open a brokerage account with $2k and start day trading. I was like why $2k? “That’s all I got”
I guess I answer my question on who trades that much, time flies, almost forgot about that.
lol when i first started, i think i did the minimum contribution at 2k, then did semi monthly deposits. to max out ira.
anyways free trades help me a lot. personally i drop 10k a trade, but i kind of dont ever trim position until it reaches like 16k, due to comissions.free trades will allow you trim successful positions, in smaller batches.
anyways i cant wait until we can create an entire portfolio for free. instead of this etf/mutual fund a la carte bullshit.
also whats interesting is that banks are encroaching on discount brokerage business. chase banking is great and they are trying to be a 1 stop shop.
I have free trades and supposedly a discounted margin rate, which is still exorbitant. I don’t have $5 million in any single account, but at that point, apparently, someone calls you and tries to get you to buy personal advising services.
When you have $1-2 million in a hacksaw place (like Chase or something, not GS Private Bank), they have a special banker for you. When you go in and want to do some basic banking service, they say, please wait, we have a special person. But then you’re like, what, I just want checks or something.
A few places I know give you free trades, but I don’t know if they tell you unless you’re already a customer. Usually, they pay attention to you when you give them about $1 million. You get assigned some person who calls you once in a while. You can also get discounts on mortgages and stuff like that, apparently. I do have a Vanguard account with $1-2 million, but they don’t really give you any real perks since they are so cheap @ss there and don’t really market a wide range of services like ML or somewhere like that.
