TD Ameritrade will lower commissions for stock and ETF trades more than three dollars, following similar reductions from two of its competitors.
TD Ameritrade Holding Corporation, based in Jersey City, N.J., announced on Tuesday evening that it is lowering its commissions on stock and ETF trades from $9.99 to $6.95, and lowering options prices to $0.75 per contract, effective March 6.
The move follows announcements by both Charles Schwab and Fidelity on Tuesday that lowered their commissions to $4.95, the lowest among major discount brokerages. E*Trade’s commissions for stock and ETF trades remain at $9.99.
“There is an effort underway in our industry to redefine value. While some are leading with price, our clients tell us it’s much more than that,” said Tim Hockey, president and CEO of TD Ameritrade, in a released comment. “They have told us time and again that value is delivered via rich experiences that prioritize flexibility and client choice, coupled with a simple, straightforward price.”
Smaller companies are also exerting pricing pressure in the brokerage market.
For retail investors, options with potentially lower costs are available. For example, the online Interactive Brokers charges $0.005 per share for stock and ETF trades, while mobile commission-free trading app Robinhood charges no commissions for stock and ETF trades.