Fidelity Investments will cease paying brokerage trading costs inclusive of soft-dollar arrangements beginning July 1, The Wall Street Journal reports. Fidelity said it paid $815 million in trading commissions last year, of which $160 million, or roughly 19%, went for soft dollar research or market data.
Fidelity expects the move will decrease investors fees, although it did not indicate by how much. Fidelity also anticipates that the elimination of soft dollars will increase its own market data and research costs, but only by $40 million to $50 million a year, Eric Roiter, general counsel of Fidelitys investment management division, told The Journal. "We are simply putting our money where our mouth is," Roiter said. "We hear the consternation about soft dollars."