Interactive Brokers Enters Commission-Free ETF Fray
Interactive Brokers (Nasdaq: IBKR) is the latest online broker to throw its hat into the commission-free ETF ring, announcing that it will offer Global X ETFs to its clients sans trading costs. Connecticut-based Interactive Brokers will offer the Global X ETFs free of charge on its Trader Workstation platform.
Interactive Brokers joins firms such Charles Schwab (NYSE: SCHW), TD Ameritrade (Nasdaq: AMTD), Scottrade, Fidelity, Vanguard and First Trust in offering commission-free trading on select ETFs.
By selecting Global X ETFs, Interactive Brokers becomes the first brokerage firm to offer commission-free trading on funds from one of the industry's up-and-coming issuers. Schwab and Vanguard only offer their own ETFs on a commission-free basis while most of the commission-free offerings from TD Ameritrade and Fidelity are from larger ETF issuers.
Interactive Brokers has agreed to waive the flat-rate and cost-plus brokerage commissions for transactions in Global X Funds ETFs and will not impose short-term trading fees, according to a statement issued by the company.
Interactive Brokers said the “promotion currently applies to a variety of Global X exchange traded funds.”
On its Web site, Interactive Brokers lists 26 Global X funds that will be available commission-free, but Global X now has 29 ETFs currently trading, including three new offerings that were introduced this week.
New York-based Global X has $1.8 billion in assets under management and is one of the fastest-growing U.S. ETF issuers.
