Wow, that’s all I have to say for my initial reaction when I heard the news. Once one brokerage went to the “Zero Commission” trading model, then all of the other major discount brokerages had to follow or die. It’s the ultimate example of dominoes falling once the first one toppled into the rest.

Zero payment for a service is a horrible business model for business, but luckily most of the brokerages make their money in their other branches of business. Ha, I wonder if the brokerages are going to run online Ads like other internet businesses? I joke, but some might actually do this, and it might not be a bad idea if done intelligently and in a limited fashion…

Anyway, for me personally, no commissions open up entirely new strategies for me to experiment with, and for those considering investing for the first time, this is the perfect time to test the waters.

One HUGE benefit of this change is that you can now invest with little money without any negative effects. When you have $50 to invest and the commission was $5, you start your investment with an instant 10% loss. With the commission penalty gone, young and starting investors have no reason not to jump into the investing arena.

I can’t way to start creating different strategies that commission fee would limit me at before!

Anyway, short post today, in my mind, I’m still reeling in all the possibilities.

Big win for us all!

Don