Bank of America Gives Investors Free Stock Trading

Bank of America’s unexpected reduction of commissions down to Zero ($0) for self-directed investors who have $25,000 invested with them.

Free ($0) online equity trades at BAI represent the latest opportunity for consumers nationwide to benefit from a broader relationship through Bank of America, with preferred pricing across banking and investment products. Approximately fifty-two million American households, or forty percent, are immediately eligible for this offer based on household assets.

What is this going to do to the big 3? Ameritrade, E*Trade, and Schwab? Will they lower fees to be competitive? It will be interesting to sit back and watch.

My traditional IRA and Roth IRA are both at Schwab. My costs, since I invest in no-fee mutual funds, are zero. But I have thought about using ETFs (Exchange Traded Funds). Being able to trade those at no cost would be a big plus.