Sell Off In TD Ameritrade (AMTD)

Shares of online broker, TD Ameritrade (NASDAQ: AMTD) have shed over 3% today after rival Fidelity announced that they would be cutting customer fees and commissions. The stock is currently trading at $17.65 on the Nasdaq exchange. Trading volume in AMTD has already surpassed 22 million shares on the day versus an average of 5.19 million.

Raymond James analyst, Patrick O'Shaughnessy, said that the commission cuts at Fidelity are a reaction to similar moves made at Charles Scwhab (NASDAQ: SCHW). Essentially a price war is going on between the major online brokers. As a result of the recent price cuts at both Fidelity and Schwab, TD Ameritrade is now at the high end of the market with $9.95 trades. O' Shaughnessy said that the drop in AMTD stock is the expected reaction to the Fidelity news, but that "it is probably an overreaction, but time will tell."