“Charles Schwab said on Tuesday that it is ending commissions for online trading in U.S. stocks, exchange-traded funds and options.
Shares of Schwab fell 5% Tuesday. Rival brokerage firms TD Ameritrade plummeted more than 20% and ETrade shares cratered more than 18%.
Starting on October 7, Schwab, which holds about $3.72 trillion in client assets, will be slashing its trading commission cost for U.S. stocks, ETFs and options from the previous $4.95 to zero. Trading options will continue to cost 65 cents per contract.
The changes will apply to securities on Canadian exchanges as well.
The last time the financial services company, with about 12 million active brokerage accounts, lowered its commission fee was in February 2017, and assets under management grew from $2.92 trillion to the current $3.72 trillion, according to a Charles Schwab spokesperson”. Read more