Earlier, it was announced that Charles Schwab is dropping all fees for its domestic brokerage trades executed through its online and app portal (that previously cost $4.95 per trade and before that, $8.95 per trade). Schwab indicated that the move was in response to apps and fintech startups like RobinHood that granted investors free trades. In its press release, Schwab called this move “an inevitability” due to the competitive pressures that it was facing.
From the business side, the price of Schwab stock fell 6% (and its peers ETrade and Ameritrade) fell much further for the obvious reason that cash-cow trading fees are being siphoned out of the industry’s business model.
In 2018, … Read the rest of this article!