On Monday, October 7th Charles Schwab and E-Trade are ending their retail commission fees on Stocks, ETF’s and Options. TD ended their commission fees yesterday.
Popular companies like Charles Schwab, E-Trade and TD Ameritrade are trying to compete with startups like Robinhood, dough, and Webull which already have commission-free trading.
The changes in fees is expected to incur relatively large losses the first year. E-Trade expects the change to cost them $300 million in the first year. Charles Schwab expects the change to cost them $400 million in the first year. TD Ameritrade expects the change to cost them around $960 million in the first year.
After the recent fee change announcements, as well as the projected losses the companies are expecting to incur, the stock prices for Charles Schwab, E-Trade and TD Ameritrade, have dropped over 10%.
