Mish is reporting on the Robin Hood service that will offer zero commission stock market trades.
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Plenty of people are excited about $0 commission trades on Robinhood. The app is still in beta test phase, but nearly 340,000 people have signed up on the company's website to gain early access.Yikes, 340,000 is a big start for people who want to trade on their own. But trade what? False economy equities? Time spent moving deck chairs around, methinks.
Those who trade frequently will be among those who benefit the most. And ultimately, this will cost Schwab, E*Trade, Scottrade and others some business. In response, commissions will drop everywhere, even if not to zero. Increased competition always leads to lower costs. And that is a good thing.Sure, lowering the cost of moving deck chairs is good, is suppose. Less net damage. But the ship is still going down.
Feel free to forward this by email to three of your friends.
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