E-Trade is getting rid of commission fees on U.S. stock, ETF and options trades.
The move comes within a week of Interactive Brokers, Charles Schwab and TD Ameritrade all dropping their commission fees.
E-Trade estimates a quarterly revenue impact of $75 million from dropping fees.
Retail brokerage firm E-Trade announced Wednesday it will drop commission fees on online U.S. stock, ETF and options trades.
The move comes within a week of Interactive Brokers, Charles Schwab and TD Ameritrade all dropping their commission fees. Shares of all the brokerage firms have been getting hit this week on fears that a lack of commission revenue with hurt margins.
E-Trade’s new fee structure will start on October 7. Options will still have a 65 cents charge per contract.
An interesting development occurred this week. Schwab announced that they are reducing their trading fees to ZERO. TD Ameritrade quickly followed suit. My personal expectation is that Fidelity and the other major brokerage accounts are going to follow suit. Here are a few questions I’d love to hear your opinions on:
-If you have a brokerage account that charges trading fees, would you consider switching to Schwab or TD Ameritrade based on their announcements? If not, why?
-If you have the Robinhood App because of the zero trade fees, would you switch away from Robinhood to a larger Brokerage that offers more services?
Can’t wait to hear your responses