Less than ten hours after Fidelity announced it was reducing its equities rates down to $4.95 and options rates down to $0.65 per contract, Charles Schwab (read our review) has announced it has once again made cuts to its own commissions rates, matching that of Fidelity.
Originally on February 3rd, 2017 Charles Schwab announced its original commissions reduction from $8.95 to $6.95 and $.75 to $.70 per contract.
All said and done, here’s how Charles Schwab’s and Fidelity’s commission rates now match up against competitors TD Ameritrade, ETRADE, and Scottrade.
Shares of Charles Schwab (SCHW), TD Ameritrade (AMTD), and ETRADE (ETFC) are selling off in early trade down -3.76%, -8.75%, and -6.60%, respectively (fidelity is privately held and Scottrade was acquired by TD Ameritrade in 2016).
Considering that TD Ameritrade and ETRADE are now both double the cost of Charles Schwab and Fidelity, they both may be forced to cut their own commissions rates in the near future. Needless to say, the next few weeks should be interesting.
Schwab Reduces Trade Commissions to $4.95 and Lowers Per Contract Options Fee to $0.65
February 28th, 2017