Definition of 'No-Fee ETF'
An exchange-traded fund (ETF) that a broker does not charge a commission or fee to be traded. Most ETFs require an investor to pay each time a buy or sell order is executed, which increases the cost associated with placing frequent trades. A no-fee ETF is used as an incentive to get an investor to move his or her account to a particular broker, with the broker forgoing a transaction fee in order to gain access to the investor's assets. This in turn allows the broker to provide other financial product and services to the investor.
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