OMAHA, Neb. (AP) — TD Ameritrade is also eliminating commissions for online trading of U.S. stocks and exchange-traded funds in the latest round of an industry battle over fees.
Investors will benefit from lower costs after the moves announced Tuesday by TD Ameritrade and Charles Schwab. But TD Ameritrade estimates it will lose about 15% of its revenue — roughly $220 million to $240 million — per quarter in the process.
TD Ameritrade said it will drop its commissions to zero from $6.95 on Thursday — four days ahead of Schwab — for online trading of stocks and ETFs listed in the U.S. and Canada.
TD Ameritrade’s stock fell 25.8% Tuesday after Schwab’s announcement. It slipped another 2% Wednesday.
The industry has been cutting investment fees for years, as customers demand lower expenses.