Schwab drops stock trading commissions as fee war escalates
Tue., Oct. 1, 2019
NEW YORK – Charles Schwab is dropping commissions for online trading of U.S. stocks and exchange-traded funds, the latest slash in an industry battle that’s drastically cut the cost of investing.
Tuesday’s announcement sent shares of other brokerages plummeting. TD Ameritrade lost 25.8%, its worst day in 13 years. ETrade Financial lost 16.4%. Schwab fell 9.7%.
Schwab said commissions for mobile and web trading of stocks and ETFs listed in the U.S. and Canada will drop to zero from $4.95 on Monday.
The industry has been slashing fees across investments for years, as customers demand lower expenses. Stock mutual funds last year kept $55 in fees for every $10,000 invested, according to the Investment Company Institute. That’s down from $100 in 2003.
Local journalism is essential.
Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.
Subscribe to the Coronavirus newsletter
Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.