That was followed by the explosive growth of available mutual funds by which investors could swap an entire portfolio with just one phone call, and later just a click of a computer mouse, with no transaction cost if handled directly with the mutual fund, and only one small commission if handled through a discount broker.
When investors buy or sell mutual funds through discount brokerage firms' "no transaction fee" marketplaces, part of the funds' expense charges are going to compensate the brokerage firms.
Contrast this with the 0.05% annualized transaction costs (with no front-end load) for our highest rated small-cap growth mutual fund, Virtus Equity Trust: Virtus Small-Cap Core Fund (PKSFX).