=Charles Schwab (SCHW) to eliminate commissions for stocks, ETFs

Charles Schwab to eliminate commissions for stocks, ETFs and options listed on U.S. or Canadian exchanges, across all mobile and web trading channels;  

• Starting on Oct. 7, Schwab, which holds about $3.72 trillion in client assets, will be slashing its trading commission cost for U.S. stocks, ETFs and options from the previous $4.95 to zero. Trading options will continue to cost 65 cents per contract. 
• This comes after Interactive Brokers (IBKR) last week announced IBKR Lite, which will offer zero commissions on US exchange-listed stocks and ETFs, no minimums, and free market data without its IB SmartRouting system.
• Commissions have been declining for decades but the rise of commission-free trades from start-up trading app Robinhood accelerated the decline in recent years. Robinhood is expected to IPO this year or next.
• TD Ameritrade (AMTD) and E*TRADE (ETFC) seem likely to follow suit to remain competitive.  
• Schwab, TD and ETrade all saw their stock prices take an initial hit on Tuesday following Schwab's pre-market announcement. On a day that saw the S&P 500 Index decline by 1.2%, Schwab shares fell by nearly 10%, TD shares lost nearly 26% and Etrade shares declined nearly 17%.
• https://finviz.com/screener.ashx?v=211&t=AMTD,ETFC,IBKR,SCHW&ta=0&o=-change

Almost forty five years ago, Chuck Schwab made investing more accessible to all Americans with the concept of low commissions to buy and sell stocks. On October 7, 2019, in conjunction with the release of Mr. Schwab's latest book, "Invested," Charles Schwab & Co., Inc. is removing the final barrier to making investing accessible to everyone by eliminating commissions for stocks, ETFs and options listed on U.S. or Canadian exchanges, across all mobile and web trading channels1. Clients trading options will continue to pay 65 cents per contract.

Beginning October 7, 2019, the company will reduce U.S. stock, ETF and options online trade commissions from $4.95 to zero. And with no minimum account size3 to open a full featured Schwab brokerage account, every investor, no matter how large or small, can benefit from the expertise and support of a firm that has been entrusted with more than $3.7 trillion in client assets. Every Schwab client using our web and mobile channels automatically qualifies for the new pricing, without opening a new account, making a new deposit or maintaining a minimum balance of any type.