Ameritrade follows Schwab. Eliminates commissions

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terr

Didn't take long...

TD Ameritrade Holding Corporation (Nasdaq: AMTD) announced today that its U.S. brokerage firm 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.

https://www.amtd.com/news-and-stori...sions-for-Online-Stock-ETF-and-Option-Trades/
 
terr said:
Didn't take long...

TD Ameritrade Holding Corporation (Nasdaq: AMTD) announced today that its U.S. brokerage firm 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.

https://www.amtd.com/news-and-stori...sions-for-Online-Stock-ETF-and-Option-Trades/
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Well, yeah, after their stock dropped 25% in a day. What else could they do? Stay the course and hope the Schwab business model will fail?

Would not be surprised if we see increases in futures commish to help compensate.
 
"We must, indeed, all hang together or, most assuredly, we shall all hang separately."

IB, Schwab and TDA decided to hang separately.
 
I can now see the new e-trade commercials...

That teen jumping off his yacht video? Now it will be him jumping from an airplane with no parachute or something, lol!
 
I am speechless. A dizzying amount of upheaval in the brokerage industry in such a short time span. Never seen anything like these past few days in my almost 30 years of trading. Once can only imagine what is to follow with the smaller brokers. Bankruptcies, mergers/acquisitions. Interesting times we live in...
 
I think this is fantastic. To me commissions for online orders seem like twisting the knife. There is almost zero overhead to execute any given order with the highly integrated technology brokers use (and share). They should charge a reasonable fee for data (I think $50/mo. is pretty reasonable for a retail trader doing normal directional trades/calendars/options) and maybe a small per-side platform fee to keep the lights on in their dev shop. For trade desk orders I am completely fine paying a reasonable commission for a broker to execute the trade for me. These guys are making a sizeable amount of cash from selling order flow anyway so they aren't exactly hurting for avenues to make back commission dollars. Robinhood, as much as I dislike the platform in general, has made an excellent example that a broker can run an operation at scale without commissions.

Overnight said:
I can now see the new e-trade commercials...
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YAS I JUST YEETED HELLA DEEP OTM SPY WEEKLIES AND CRUSHED IT DAWG. WAS LIT FAM.
 
R1234 said:
Once can only imagine what is to follow with the smaller brokers.
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Who is left in US for Equities and Options? Next step negative commissions (rebates) for high volume traders even for taking liquidity(PFOF kickback sharing)?
This can't be good for independent active traders who need DMA and execution quality. Not healthy for the industry, imho.
 
qlai said:
This can't be good for independent active traders who need DMA and execution quality. Not healthy for the industry, imho.
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How do you figure? How does this stop DMA and execution quality? The hardware has paid for itself many times over and they’re still taking PFOF and other fees.

If an active trader (read day trader in futures) needs higher quality execution and DMA there are far better, less advertised, more bespoke brokerage and execution firms. They just have fairly large capital requirements (think 50,000+ USD).
 
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