Ten years ago, a brokerage charging $0 for stock trades was unimaginable. Today, zero-commission trading is universal across every major US brokerage platform β a transformation so complete that most American investors under 35 have never paid a trading commission. This is the story of how that happened and what it has meant for the 100 million Americans who now own individual stocks.
Robinhood launched with zero commissions in 2013, attracting a generation of younger investors who had been priced out by $7-$10 per-trade fees that made small portfolio building economically irrational. Within six years, competitive pressure had forced Fidelity, Charles Schwab, TD Ameritrade, E*Trade, and every other major US broker to eliminate commissions entirely.
The democratization effects are real and significant. Stock ownership among Americans aged 18-35 increased from 27% to 54% between 2013 and today. The average account size has fallen from $87,000 to $22,000, reflecting the entry of millions of smaller investors. The S&P 500 has become accessible to people who would never have opened a brokerage account in the commission era.
The unintended consequences are also real. The combination of zero commissions, mobile-first design, and gamification features contributed to the meme stock phenomenon and crypto speculation that wiped out an estimated $30 billion in retail investor wealth in 2022.
