Banking, finance, and taxes
Life Gets Harder For Schwab And TDAmeritrade
Published:
Well Fargo (WFS) is going to offer its brokerage customers up to 100 free trades, if they keep at least $25,000 in their accounts. Bank of America (BAC) made a similar offer several months ago.
For E*Trade (ET), TD Ameritrade (AMTD), and Schwab (SCHW) this trend is not their friend.
Forrester Research says that the moves could drive a number of brokers to offer zero commissions within the next two years.
Whether the traditional discount brokers can keep their margins from the interest they get on account balances and forms of trading aside from equities is a matter of speculation. But, net net the move to "free" trading cannot be good news for the discounters who are estimated to have over 15 million customers.
Somethings got to give.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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