So in this video we are going to be discussing the recent Commission Free Trading warrants. How commission free trading may actually not be that great for us as traders. Whether it is time for you to switch to a new broker and of course, intrusive trader fashion, we were going to be talking about whether or not this news is a buying opportunity and that's going to be at the end of the video. Okay, so for a bit of context, in the past 72 hours, we've had several of the cookie-cutter and most traditional brokers open their doors to Commission Free Trading.

Most notably, it started about a week ago with interactive brokers introducing a lite version of their current trades that would have commissioned free trading and then we had Schwab And then we had the big Domino Fall TD Ameritrade Who announced they would be joining this commission free race even though it meant giving up perhaps 32 percent of their revenue. So at this point almost all of the major players have joined the Commission Free race and this is good. We as traders, wano and brokers fight for our business. But here at Zip Trader, we always want to remain competitive.

So starting right now to get in on this craze Zip Trader will be offering Commission free hits of that rad machine like button. But with all these major players switching to Commission free, you might be confused as to whether or not you should switch. But like with many trading choices, this is a very personal decision based on how much success you've had with your platform, how much you've grown used to it, and your own personality. What you value in a platform and so I cannot and will not speak for all of you.

However, when it comes to leaving Robinhood let me go ahead and speak for all of you when I say yes I'm just kidding of course, but I do hate Robin Hood goodbye Greenleaf However, the truth is actually a lot more nuanced. You see these early pioneers in the sector like Robin Hood and Weeble. They didn't just give us Commission free trading. They gave us a really simple intuitive application that allowed many new traders who were on the fence about trading to enter the market in a completely new and innovative way that helped many new and curious traders enter the market before eventually moving on to real platforms.

But then as time went on, Robin Hood became more advanced. they improved the platform, they improved their executions, they improved what they offered new Commission's free brokers entered the segment with even more offerings and the difference between paid and free brokers counted became a little bit more blurred and what this has resulted in aka what we have today is a system where a ton of traders are choosing to stick with Robin Hood and people type brokers because of their simplicity and their effectiveness and getting them what they need. A lot of these brokers make good use of their competitive advantage of having free Commission creating for a while. and now that they don't have that competitive edge anymore, they've already locked in a lot of people with their easy-to-use UI and a lot of these are very good quality as you know.

I've been a fan of Weevil for quite some time, but I was a fan. Not because they have a commission free trading platform, but because their tools and resources that they have in the app are much more effective and much less watered-down as compared to Robin Hood and I Knew that a large portion of my base is centered on Robin Hood I recommend we bowl because I know that's going to be a huge upgrade from Robin Hood Both had commissioned free trades and both had an easy-to-use platform app, but it has a lot more features that we could use as day traders to be successful. where Robin Hood was a lot better at targeting new investors that didn't really care that much about day trading skills and day trading indicators and stuff like that. But of course, since they both added a ton of new features.

but the question is, at the end of the day, does it make sense to move from one of these commission-free trading platforms or other competitors? You stop being like Thinkorswim, which is another platform that we use on this channel. While in my personal opinion, TD Ameritrade is the gold Standard, the gold standard of trading platforms, and it has been for quite some time and I've used this on the majority of my videos. However, I don't think it's the best for everybody. Let me explain.

for example, when it comes to mobile trading, they suck. Mobile application is very archaic and I would go so far as to say it's kind of a mess because unlike Robin Hood in Weeble, they didn't start as a mobile centered platform, but they rather started as a professional desktop trading platform. and then they tried to convert that into a mobile app, which didn't go so well. It works and it's effective, but it's not as easy to use as something like Robin Hood or we bullets Robin Hood And we both started by focusing on building a great app and then they'd built out where is Thinkorswim? They started with building a great platform.

they did a great job of that, but when they tried to convert it to mobile, didn't work out so well. I Think very few people will disagree that the Thinkorswim app is lacking. and the reality is that having a good mobile app is very important because a ton of folks on this channel and a ton of folks in this community. They have jobs.

They have other things that they're doing they can't before it. you sit in front of the computer all day and they're not taking every position. they're taking only the best of positions. In those situations, a mobile app is going to be very helpful.

Of course, as a full-time trader, I would never recommend somebody trade solely on their phone, but if you're trading part-time it makes sense. Do you have a really good mobile app? One that's really powerful so that you can make effective trades while also doing other things, taking care of other commitments. and it really depends on your goals and your lifestyle. Some people are able to do it all on their phone I wouldn't want to do it all on my phone, but I like to execute some trades on my phone and I like to have the ability to trade using a powerful app.

But overall, what this comes down to is that these mobile apps were focused on catering to as wide of a market as possible and as a result they made it very easy and intuitive to understand. They've also integrated social aspects, which I thought was really wonderful. Weeble has a great social community with a bunch of different games and stuff that you can play. You could say well, but Charlie I don't like playing games I just want to make money and we all like making money.

but having a community around you is very important. You want to put some sort of social aspect in trading. Ok, so enough talking. What are my conclusions? Well, in short: I think that if you're somebody who likes to trade on the go, you're somebody who is working.

You were somebody who trades part-time etc so on and so forth. Maybe you're in school, or you're someone who likes to analyze thoughts without all the fluff of having all these different indicators and things set up. Odds are strong that we Bowl and Robin Hood will have the same appeal as they did before I do prefer weeble of the two though link below. but if you're somebody who is adventurous and broker curious and wanted to try out a bunch of different, more traditional platforms, but we're specifically kept from doing so because of the high commission fees, then this is a great opportunity to check them out and I recommend you do so.

The point is, when it comes to brokers, there really isn't a one-size-fits-all approach. I Recommend that you go out and you try a ton of different brokers and see what works best for you. And as a side note, it's not a bad idea to open up with multiple brokers for those of you who are struggling with PDT disease, that disease that makes it so you can only trade 3 times within a 5 day period. Can easily double that or triple that by signing up with 2 or 3 different brokers if you opened one with we've bought one with Robin Hood and one with TD Ameritrade and you'd have nine day trades and they'd all be commissioned free.

Ok, so let's go ahead and talk about sort of the business side and what the downsides are of commission free trading. And in order to do that, let's go ahead and go back to the beginning. So this rush to $0 commissions really started and gain traction about five years ago when Robin Hood exploited the fact that trades cost very little for the broker to actually execute as they are done electronically and automatically and thus effectively had a very miniscule cost to the broker. They also discovered that most of the revenues from commissions could be quickly made up by the sheer volume of people adopting their platform.

The most notorious way is through marking up your execution sprint. For example, when a broker fills your order, they may execute you in or out at a price that is slightly different than what you're actually getting it for. This goes through the market maker and then the broker ends up profiting from the order flow. In other words, the system.

The current system that we have is set up so that you were overpaying. For sure you buy and are being underpaid for sure as you sell and even paid brokers do this. Everyone does this and they knew going in that they wouldn't have to have the huge overhead that other big brokers, more established brokers like TD Ameritrade had. but there's also margin fees, account balance, interest than a ton of other little different nifty education that they sell and ton of other little nifty things that broker sell to traders.

But with Commission's making up over a quarter of TD Ameritrade revenue, how is it that these brokers will come out ahead in the long run? Well, this is 100% my speculation, but let's just go ahead and dive into my thoughts anyways. brokers are the only guaranteed party that wins each and every single time you trade. Doesn't matter if we as traders win or lose, the broker always makes money. So at the end of the day, brokers are betting that taking a short-term loss in revenue will both allow them to stay competitive in an ever more crowded market.

and at the end of the day, encourage more people to trade and make more trades per person. If people are not paying a fee each time they trade, they're more likely to trade more often. So brokers are betting that they can make up for the loss in revenue by encouraging a larger volume of traders to trade and a larger volume of trades per trader to happen and thus increasing a larger volume of trades overall which will then lead to them having more profit. But our Commission's free trades good for us as traders.

Well on the surface, yes, they are good. Trading is a business. In every single time that you lower your expenses, you have more room to make a profit. It's having Commission free trades means that you're going to be over trading now because you don't have to pay commissions, then you are likely going to lose more money than you ever even paid in commissions.

I Always say trade like a spoiled brat. You only trade when you have the best of setups. Just because you don't have to pay commissions now, doesn't mean that you trade using bad setups. But other than that, taking Commission's out of the trading process means that we may end up having poor customer service, worst platform support, and worst performance overall.

And it also might mean slower executions and wider execution sprint. So these are of course some of the things that I think you should consider as we dive headfirst into the Commission free trading world. And last but not least, has this recent DEP created a buying opportunity in TD Ameritrade TD Ameritrade Stock has gotten beaten down like none other than a rabid dog and the initial overreaction had a green period that was nothing short of a pansy bar. We hate pansy bars and we could speculate all day on whether or not this stock will continue down trending as investors struggle to figure out what this commission-free training thing actually means for the broker.

Will it help them in the long run? Will it hurt them? Investors are betting that it will hurt them, but no one really knows yet. But we as traders aren't really in the business of speculating on business models. We are on the business of speculating on price action. But unfortunately, TD Ameritrade Long term has been in down where territory.

It has kept fighting to get into an uptrend, but it just doesn't hold there and once it accepts an uptrend, it just rejects it and goes back down. This downtrend has been accelerated by the fact that TD Ameritrade is going to be leaving 32% of their revenue on the table. So while we may still be in a period of massive overreaction the end of the day, this still is a downtrend in stock. so we'll need to see signs of a reasonable price strength recovery before taking a position.

And when I say price drinks I don't just mean confirmation, but we want to at least reach the previous overreaction lows and then show some strength above that, because again, every reaction in the stock market is an overreaction. But if we can't even make it to overreaction lows, then how are we going to trade often? But anyways, folks, I Hope this video was useful. If you have any questions whatsoever, feel free to reach out to us in the comment section below or join our free zip trader circle Facebook group. Anyways, folks, have a great day and I'll see you in the next video.

Goodbye Greenleaf Leave Leave Leave Leave leave goodbye Robin Hood.