Schwab to drop commissions on U.S. stock, ETF and options trades, slamming online broker stocks – MarketWatch, Marketwatch.com

                                  

Charles Schwab Corp. shares                                                                                                                                                                                                                      SCHW,– 8. 30%                                                                                                                                                           fell sharply in premarket trade Tuesday, after the company said it is planning to drop commission on U.s. stocks, ETFs and options effective Oct. 7. The company said the decision to remove “the final pricing barrier to investing online” comes at the publications of Chuck Scwhab’s new book, ‘Invested.’ “From day one, my passion has been to make investing easier and more affordable for everyone,” Schwab said in a statement. “Beginning October 7, every Schwab client can trade U.S. stocks, ETFs and options commission-free. Eliminating commissions ensures my ultimate vision is realized – making investing accessible to all.” Schwab currently charges clients $ 4. 95 per stock, ETF and option trade. The new service comes with no minimum account size. The news sent shares of rivals sharply lower with TD Ameritrade Holding Corp.                                                                                                                                                                                                                      AMTD,– 21. 07%                                                                                                                                                           down 14% and E-Trade Financial Corp.                                                                                                                                                                                                                      ETFC,– 16. 80%                                                                                                                                                           down 12%.