There was a time in 2011 when free commissions were a craze, but the period of time it was applied to was a few months, or a year at the longest. However, this time, the applied period is at least one year, and five years at the longest.
Of course, stock firms are throwing us a bone in order to increase their clients, but as an investor, wisely using the benefits could result in big savings.
According to industry watchers, Korea Investment & Securities and KDB Daewoo Securities are launching a campaign that applies zero stock trading fees for as long as five years.
Samsung Securities is providing free trading fees for three years to clients that activate a dormant account they previously had.
Though different in the benefits and the length of privileges, Eugene Investment & Securities, Kiwoom Securities, Daishin Securities and Mirae Asset Securities are all in progress of free stock trading commission events.
The events are a marketing method to draw more clients to stock trading companies. Although the trading fees are free, by securing a client, they can lure them towards other products such as financial management services or annuity savings. “We somehow feel a little bitter because this feels like cutthroat competition, but it is a good chance for clients. Many are changing stock firms aiming for the free commission benefits.”
However, slight inconveniences occur adopting to the new online trading system after switching firms. Also, while commissions to the stock firms are waived, securities transaction taxes (0.03 percent of what you sell) or interagency commissions (0.0003 percent) still have to be paid.
By Kevin Lee (email@example.com)