So Charles Schwab is the next broker to go commission free. I’m not sure how the incumbents can afford to remove such a big part of their revenue model and still keep the same cost base though.
The take from the CEO of StockTwits is:
E*Trade sinks 14% , TD Ameritrade slides 14% , Interactive Brokers falls 4.6% , and Charles Schwab falls 6.1%
This morning the e-brokerages age each losing billions in market cap. They were lazy investing 100’s of millions in new products and acquisitions and now free commission only gets them on par with a new breed. Their customer acquisition models still antiquated and product teams bloated.
quote from here
Do we think this is bad for Robinhood too?