I’m intresting in purchasing some ETF shares using Scottrade.com. My question is whether there are any additional fees or commission that are applied to trading ETF’s? Since they trade like stock, are they charged the same dollar trading fee? I appreciate the help,.
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You will pay the $7 to trade the ETF just like any other stock. For whatever reason, a few of my trades with Scottrade were $7.01 and $7.02. I’m not to worried about it though.
I know nothing about Scottrade but as you are buying a fund, you are paying for two transactions; the purchase or sale of the ETF and the purchase or sale of the underlying shares held by the ETF.
Sometimes this is attractive – for example sometimes you can buy a closed end fund for less than its NAV or get exposure to things you could not buy directly.
You will only pay the standard fee for the ETF just as if it were any other stock. You pay no more for an ETF than for buying shares in GE or IBM.