No Transaction Fee (NTF) Funds
Non Transaction Fee or NTF funds, also known as No Transaction Fee Mutual Funds, are no-load mutual funds without any commission charges. Like no-load mutual funds which are usually offered directly through the investment company without any commission charges, NTF funds are offered through a brokerage firm without any transaction fee.
Non transaction fee funds are advantageous for investors who wish to reduce the commission charges and have long-term profit goals. Often there is not much performance difference between NTF funds (or no-load funds) and funds with transaction fees (load funds). So it is always a good option to reduce trading costs. Brokers offering NTF funds are benefited by 1) attracting more customers by providing a range of low/no fee products, and 2) by getting compensation from mutual fund issuing firms – usually as marketing firms.
Not all brokers offer no transaction fee funds; and also the number and type of funds available differ considerably between brokers. At times the trader/investor needs to meet certain conditions/terms for getting no transaction fee. Usually there are restrictions in short-term fund redemptions. Some brokerage firms charge price for Broker assisted trading of NTF funds.
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Non transaction fee funds are advantageous for investors who wish to reduce the commission charges and have long-term profit goals. Often there is not much performance difference between NTF funds (or no-load funds) and funds with transaction fees (load funds). So it is always a good option to reduce trading costs. Brokers offering NTF funds are benefited by 1) attracting more customers by providing a range of low/no fee products, and 2) by getting compensation from mutual fund issuing firms – usually as marketing firms.
Not all brokers offer no transaction fee funds; and also the number and type of funds available differ considerably between brokers. At times the trader/investor needs to meet certain conditions/terms for getting no transaction fee. Usually there are restrictions in short-term fund redemptions. Some brokerage firms charge price for Broker assisted trading of NTF funds.
NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage
posted by Daniel Pipitone at
4:59 AM
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