Commission-Free Trading and Vanguard ETF Trade Limits
Summary
The discussion addresses how to reduce brokerage commissions when testing a system expected to trade frequently in an S&P 500-like instrument. It points to commission-free ETFs and mutual funds offered by several providers, but supplies no detailed comparison of eligibility, fees, or trade limits. One answer notes that a provider’s website would need to be checked for any cap on commission-free trades.
A further answer clarifies the cited Vanguard rule: trading the same Vanguard ETF more than 25 times in a 12-month period may lead to a 60-day restriction on buying that ETF through a Vanguard Brokerage account. The limit described is therefore a possible purchase restriction on a particular ETF, rather than a blanket ceiling on all trades. The post is a dated collection of pointers and a clarification, not a current brokerage survey; terms and product availability should be verified with providers before relying on them.
Key ideas
- Commission-free funds may reduce transaction costs for frequent system testing.
- The discussion lists several providers but does not compare their trading terms.
- The cited Vanguard rule concerns repeated trades in the same ETF and may restrict further purchases.
- Brokerage terms can change, so provider conditions need direct verification.
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Full text
# Maximum friction-free trades # Maximum friction-free trades I have a trading system I would like to test for the S&P 500, or another very similar instrument. I'm looking to make approximately 10-15 trades per month. I know if you have a Vanguard account, you can trade their ETFs for no commission, but them limit you to 25 trades in a 12 month period. Are there any other brokerage that let you trade certain instruments without paying a comission? ## Answer by bill_080 (score 3, accepted) https://quant.stackexchange.com/a/1026 Take a look at Schwab: http://www.schwab.com/public/schwab/investment_products/etfs/schwab_etfs http://www.schwab.com/public/schwab/investment_products/mutual_funds/no_fee_funds.html Pro-funds ========: http://www.profunds.com/overview/content/faqs.html http://www.proshares.com/faqs/ Rydex ========: http://www.rydex-sgi.com/products/mutual_funds/home/mf_home.rails http://www.rydex-sgi.com/products/etfs/home/etf_home.rails ## Answer by Joshua Chance (score 4) https://quant.stackexchange.com/a/1028 Here's a rundown of the various commission-free options out there. Doesn't give any info on maximum number of trades but that shouldn't be very hard to find on the providers' websites. ## Answer by Tangurena (score 3) https://quant.stackexchange.com/a/1052 I think you've misread the weasel words about Vanguard ETF trades: > If you buy and sell the same Vanguard ETF in a Vanguard Brokerage account more than 25 times in a 12-month period, you may be restricted from purchasing that Vanguard ETF through your Vanguard Brokerage account for 60 days. Source.
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