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The vast majority of that is due to transaction fees/commissions, which RH doesn't have. I would still expect this to hold up even on a zero-commission basis, b
by icelancer 9y ago
The vast majority of that is due to transaction fees/commissions, which RH doesn't have. I would still expect this to hold up even on a zero-commission basis, but the effect would be significantly diminished.
- prostoalex 9y agoThe transaction fees start to matter when the number of transactions goes up. Fidelity's thesis was the account growth was correlated to complete lack of transactions (except for DRIP, I guess). On a side note, zero-fee instruments are not that rare for brokerages nowadays. Fidelity itself lists 3,691 mutual funds https://www.fidelity.com/fund-screener/research.shtml https://www.fidelity.com/fund-screener/research.shtml and 93 ETFs https://www.fidelity.com/etfs/overview https://www.fidelity.com/etfs/overview as fee-free, and I think they're not even the leader in the space.