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

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

That was quick.

TD Ameritrade Holding Corp. (NASDAQ: 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 (NYSE: 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. (NASDAQ: 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 (NASDAQ: ETFC) closed lower by 16%. Charles Schwab and Interactive Brokers each fell more than 9%.

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