Dear DTA,
I saw a lot of brokerages are now offering free commissions. What’s the best way to approach this? Any downsides to the free trades?
-Jack B.
Hi, Jack.
Thanks so much for writing in. We appreciate your readership.
Free trades!
It’s fantastic.
Pretty much every major discount brokerage is now offering this perk.
I’ll tell you the best way to approach this.
Take advantage of it.
I wouldn’t necessarily alter much about how you’re already trading or investing, but free is certainly better than not free.
I can’t think of a single downside to this, other than if you were to let it somehow negatively adjust the way you go about managing your money.
For example, you wouldn’t want to start trading significantly more often now just because commission fees have been eliminated.
Jumping in and out things with no thought process, simply because it’s free and easy to do so, isn’t very intelligent.
So what is intelligent?
Well, I’d argue that buying high-quality dividend growth stocks at attractive valuations and holding for the long term is very intelligent.
If you’re not already using the dividend growth investing strategy, Jack, I’d recommend to take a good look at it.
It could radically change your life.
Dividend growth investing has definitely radically changed my life.
This is the investment strategy I used to go from below broke at 27 years old to financially free at 33, as I lay out in my Early Retirement Blueprint.
I’m now in my 30s and retired.
Indeed, my FIRE Fund generates the five-figure passive dividend income I live off of.
It’s the life of my dreams.
And you could be living the life of your dreams, too.
So what is dividend growth investing?
It’s a long-term investment strategy that advocates buying shares in high-quality companies that pay their shareholders reliable and rising cash dividend payments.
The Dividend Champions, Contenders, and Challengers list contains hundreds of examples of these stocks.
Do you homework.
Buy shares when they’re undervalued.
Hold for the long term.
Collect and reinvest your growing dividend income.
Become rich.
It sounds simple.
That’s because it is.
Of course, it’s not easy.
Nothing worth having in this life is easy, Jack.
But it’s definitely not complicated.
And these free trades make it even less complicated than before.
So do take advantage of this.
It’s never been more straightforward, cheap, or simple to pick up shares in a high-quality company.
This is your opportunity to build significant and sustainable long-term wealth and passive income.
Don’t let it pass you by.
Speaking of opportunities, make sure to read through fellow contributor Dave Van Knapp’s Dividend Growth Investing Lessons.
It’s a phenomenal resource. It teaches the A-Z of DGI. And it’s totally free.
It’s your opportunity to educate and empower yourself.
You should learn as much about money and investing as possible.
After all, nobody will care about your money more than you.
If you take care of your money, your money will take care of you.
Once you’ve educated and empowered yourself, it’s time to put some capital and free trades to work.
Be sure to check out my Undervalued Dividend Growth Stock of the Week series before you make your next trade.
I take time every Sunday to share a compelling long-term dividend growth stock idea with the community.
I present ideas when quality and valuation merit consideration.
Said another way, they’re high-quality companies. And I highlight them when shares appear to be undervalued.
Free trades are fantastic.
Don’t let it alter your path, though.
Instead, allow free trades to magnify what you were already doing.
And if you’re not already using dividend growth investing, you should definitely think twice.
Either way, I’ll leave you with my last piece of advice.
Start taking advantage of your opportunities today.
I wish you luck and success.
Jason Fieber
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Disclaimer: Jason Fieber is not a licensed financial advisor, tax professional, or stock broker. Please consult with a licensed investment professional before investing any of your money. If your money is not FDIC insured, it may decline in value. To protect the privacy of our readers, any names published in this article are under aliases. In addition, text may be edited, omitted or paraphrased for grammar or length.