Trade Commissions: Stock Bets and Investors

trade commissions: Inexperienced investors could overtrade or make risky stock bets, unimpeded by fees to make them stop and think a second, advisers told Market Watch, according to Market Watch. Inexperienced investors could overtrade or make risky stock bets, unimpeded by fees to make them stop and think a second, advisers told Market Watch. After the news that Charles Schwab Corp. and TD Ameritrade would soon be dropping trade commissions, some financial advisers and market experts say it's possible mom and pop investors could still end up paying just in a different way. David Bize, an Oklahoma City-based financial planner, said that do-it-yourself investors have had low-cost trades for years, which provided ample rope to hang themselves. Starting Monday, Schwab is dropping its 4.95 commission per stock trade, ETF and option trade. No costs would encourage even more trades, which, he said, most people do poorly, rather than a buy-and-hold' approach, which would be better for them. (news.financializer.com). As reported in the news.