Schwab Cuts Commissions To Zero, As Free Trading Edges Toward The Norm
The traditional online broker is cutting commissions from $4.95 per trade to zero. Charles Schwab is under pressure from newer firms like Robinhood, which are app-based and target younger customers.
Wall Street is in a race to the bottom. On Tuesday, Charles Schwab said it will slash its commissions for online trades to zero in response to looming competition from app-based upstarts like Robinhood.
The brokerage firm's stock was down 10% inIts competitors took a bigger hit, with TD Ameritrade shares falling 25% and E-Trade down about 17%. In its , Schwab said eliminating online trading commissions equates to about $90 million to $100 million in quarterly revenue, or about 3% to 4% of revenue.
