The shift to free commissions may prompt Ameritrade and E*Trade to reconsider a merger, Ritter said. The combination would put the brokerages in a better position to compete with Schwab.
The fee war has rattled the broader asset management industry as well. Since the middle of last year, firms including Fidelity Investments, Vanguard Group and JPMorgan Chase & Co. have eliminated fees and commissions on a range of offerings.
This article was provided by Bloomberg News.