TD Ameritrade Joins The Party, Cuts Commissions On Stocks, ETFs And Options Trades

That was quick.

TD Ameritrade Holding Corp. AMTD announced Tuesday evening the brokerage firm will eliminate commissions for its online exchange-listed stock, ETF and option trades, moving from $6.95 to $0, effective Thursday. Clients trading options will now pay 65 cents per contract with no exercise and assignment fees.

Earlier Tuesday, Charles Schwab Corporation SCHW said users will no longer pay $4.95 per trade for trading stocks and ETFs on its platform. Option trades will remain 65 cents per contract. Meanwhile, Interactive Brokers Group, Inc. IBKR eliminated its trading commissions last week.

"We are committed to giving our clients the best possible investing experience, with cutting-edge technology and award-winning investor education and service teams. And now, that experience just got better," said TD Ameritrade CEO Tim Hockey. "We've been taking market share with a premium price point, and with a $0 price point and a level playing field, we are even more confident in our competitive position, and the value we offer our clients."

The brokerage stocks all took big hits in Tuesday's trading session: TD Ameritrade led the way by dropping 25%, while E*TRADE Financial Corp ETFC closed lower by 16%. Charles Schwab and Interactive Brokers each fell more than 9%.

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