If You Own One of These ETFs, Fidelity Is About to Charge You $100 to Trade It
View original at finance.yahoo.comIf You Own One of These ETFs, Fidelity Is About to Charge You $100 to Trade It Starting June 1, Fidelity will charge a $100 fee on purchase trades on more than 120 exchange-traded funds (ETFs)…
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Fidelity is telling ETF issuers to subsidize the platform fee or investors will be charged $100 every time they purchase shares of the affected ETFs.
60% confidenceFidelity's decision to charge a $100 fee on ETF purchases is one of the most investor-unfriendly decisions seen in a while.
60% confidenceFidelity is not threatening to remove affected ETFs from its platform, but is making investing in them less attractive.
60% confidenceIt is not the ETF issuers who will suffer immediately from Fidelity's fee; it will be investors who want to buy shares of the affected ETFs.
60% confidenceWhile trades are free for investors on many platforms, they still cost money for brokerage platforms, and many ETF issuers subsidize the fee themselves so that funds remain accessible.
60% confidenceFidelity's fee policy immediately makes Vanguard look more attractive as a competing platform.
60% confidence
