TD Ameritrade stock price is down 21.63%
- Thread starter heispark
- Start date
Wonder how low this stock goes. Should research how much revenue comes from commission trading.
I should have bought puts knowing this wasn't the end to commission free trading when interactive brokers came out with news then other day. If etrade announces free trading these stocks will fall another 20%
MattZ
Sponsor
It's amazing how all the companies that announced zero fees on stocks are going down.
https://www.investors.com/news/schw...stock-trades-tdameritrade-etrade-ibkr-plunge/
https://www.investors.com/news/schw...stock-trades-tdameritrade-etrade-ibkr-plunge/
Baron
ET Founder
That's because their business models are rolling over to a new model, which is being paid for order flow by the competing exchanges instead of charging the customer on a per-trade basis. It's a lot of eggs to put in a few baskets because now the brokerages are at the mercy of the exchanges to pay up. Not the best scenario if you're an investor in brokerage stocks.
MattZ
Sponsor
I hope that the back offices of these brokerage and the exchnages are organized enough to get what they deserve.
Isn't it the hft market makers like citadel that are paying for order flow?
Etrade and Ameritrade will announce free trading in the week ahead
And it's funny how many fees Ameritrade and etrade still charge They nickel and dime you like crazy. All these new financial companies kr FINtech companies are pretty much free. Ameritrade is charging for "reorganization fees" $38 dollars every time. I would call them up and mention Robinhood and webull about them not having "reorganization fees" within days they removed the fee for me. At that time I was done trading with them and moved all my stocks and cash to webull. Now I use webull and Robinhood. See what happens when these old companies dont change and try to stay with their old ways. They end up losing.
And it's funny how many fees Ameritrade and etrade still charge They nickel and dime you like crazy. All these new financial companies kr FINtech companies are pretty much free. Ameritrade is charging for "reorganization fees" $38 dollars every time. I would call them up and mention Robinhood and webull about them not having "reorganization fees" within days they removed the fee for me. At that time I was done trading with them and moved all my stocks and cash to webull. Now I use webull and Robinhood. See what happens when these old companies dont change and try to stay with their old ways. They end up losing.
Now what if Ameritrade years ago before the likes of Robinhood decided to offer free online trading, would Robinhood not exist today??
They waited long enough to see how quickly Robinhood would catch up and they caught up very quickly in a very short amount of time but I believe it's too late. Unless the traditional brokers can offer some type of new entity to their old school ways then maybe they can become something more than what they were but until then Robinhood is to thank for.
They waited long enough to see how quickly Robinhood would catch up and they caught up very quickly in a very short amount of time but I believe it's too late. Unless the traditional brokers can offer some type of new entity to their old school ways then maybe they can become something more than what they were but until then Robinhood is to thank for.
The business model before was:
Get payment for order flow AND charge customers on a per-trade basis.
Now its:
Get Payment for order flow AND nothing.