Well, what I’m about to say is quite an unpopular opinion, and I’m probably going to get roasted for it. It’s my pure opinion that I don’t mind paying fees. There, I said it. I don’t know who on earth came up with the idea of “zero fees” in the brokerage industry. Brokers taking commission or fees is as old as the stock market itself; technically, it’s how the whole industry used to make a profit itself. It’s how it’s supposed to work. I’m glad T212 is taking this step, because it’s a sign they’re taking their service to the next level.
Over the past couple years, investing/trading has largely seen the gamification of itself by the brokerage industry, especially with zero fees. For that reason, it’s lured way too many individuals into the investing space, only to “gamble” away their life savings because they think the stock market is a casino. It is not. This sort of mentality is hurting the companies willing to raise capital, the large institutional investors and also, yes, even the little guy. It’s causing a trading frenzy that has practically ruined the functionality of the US stock market; the volatility just isn’t going away ever since the 2020 crash. And it is clear what the impact of the GameStop squeeze has had on other parts of the market. Sure, the HFs got burned - but so did the little guy also holding puts. But the biggest victims are the small individuals (with no prior trading experience) who bought GameStop at $450 with all their life savings. I remember seeing posts all over the internet, people asking “what is the stock market?” or “how do I buy GameStop”. Melvin Capital still exists and it’s business as usual, but that’s not quite the same for the bagholders. This is what happens when you gamify investing. And fees will deter such individuals.
So I guess this recent increase in trading frenzy is what is prompting these recent moves by brokerages to introduce fees. I’m not surprised at all at such a move by T212. I’ll say it again, it’s not a game. So I’ll gladly keep using T212.