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.