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Lookout, Robinhood. E*Trade, Schwab, Ameritrade go zero-fee

The biggest players in online stock trading all just copied Robinhood by removing their fees for stock and ETF trading. Charles Schwab announced yesterday it would drop its $4.95 fee, leading to plummeting share prices for it as well as competitors. By the end of yesterday Ameritrade announced it too would axe its $6.95 fees, and then E*Trade followed suit this morning killing off its own $6.95 fee. However, none of their share price recovered.
From yesterday before Schwab’s announcement through now, Schwab fell 12% from $41.84 to $36.54, E*Trade fell 19% from $43.69 to $35.20, and Ameritrade fell 28% from $46.70 to $33.54. Clearly investors aren’t thrilled that these financial giants are bowing to pressure from a measely startup.
Lookout, Robinhood. E*Trade, Schwab, Ameritrade go zero-fee

Yet the move could definitely hurt growth for the $7.6 billion-valued fintech upstart Robinhood. It’s relied on the free stock trades to pull in users that it then monetizes with its Robinhood Gold subscription to premium services including the ability to trade on margin by temporarily borrowing money from the company.
Lookout, Robinhood. E*Trade, Schwab, Ameritrade go zero-fee
Schwab drops its fees
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