This article was originally published on ETFTrends.com.
Just one day after Charles Schwab announced it would eliminate commissions for ETF and stock trades, TD Ameritrade Holding Corporation is following suit.
TD Ameritrade will eliminate commissions for its online exchange-listed stock, ETF (domestic and Canadian), and option trades, moving from $6.95 to $0, effective Thursday Oct. 3, 2019. Clients trading options will now pay $0.65 per contract with no exercise and assignment fees.
TD Ameritrade (AMTD) closed down 3.26% at $33.54 a share on Wednesday following the announcement.
TD Ameritrade President and CEO Tim Hockey said they are committed to giving their clients the best possible investing experience, with cutting-edge technology and award-winning investor education and service teams.
“We’ve been taking market share with a premium price point, and with a $0 price point and a level playing field, we are even more confident in our competitive position, and the value we offer our clients”
For nearly 45 years, TD Ameritrade has pioneered trading and investing experiences that continually push the envelope of what clients expect from their brokerage firm. From the first touch-tone phone trade to the first mobile trade, the company is committed to exploring new opportunities that deliver easy, personal, and above all enlightening experiences for its clients including:
- thinkorswim, the best-in-class trading platform, rated #1 by Stockbrokers.com four years in a row;
- A price improvement rate better than its competition; 1
- Award-winning investor education and service teams; and
- An extensive branch network.
TD Ameritrade Chief Financial Officer Steve Boyle said its decision to cut commissions was made a reality due to the diversity of its business model.
“We expect this decision to have a revenue impact of approximately $220-240 million per quarter, or approximately 15-16 percent of net revenues, based on June Quarter fiscal 2019 revenue," Boyle said. "We’ll have more information about our fiscal 2020 plan when we release fourth quarter earnings later this month.”
Rates will be effective for TD Ameritrade retail clients, as well as clients of independent registered investment advisors that utilize TD Ameritrade Institutional. A final pricing schedule will be available on Oct. 3, 2019.
For more investing news, visit ETFtrends.com.
POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM
- SPY ETF Quote
- VOO ETF Quote
- QQQ ETF Quote
- VTI ETF Quote
- JNUG ETF Quote
- Top 34 Gold ETFs
- Top 34 Oil ETFs
- Top 57 Financials ETFs
- Liquid Strategies Presents Overlay Shares’ New Equity ETF Suite
- Schwab Eliminates ETF, Stock and Options Commissions
- European Stock ETF Could Offer Investors A Chance To Invest And Hedge Currencies
- Bitcoin, Cryptocurrencies Tumble Over Past Week
- 3 ETFs to Look Into for the 5G Revolution