E-Trade drops commissions on trades, joining Schwab, TD Ameritrade in brokerage fee war

Retail brokerage firm E-Trade announced Thursday it will drop commission fees on online U.S. stock, ETF and options trades.

The move comes within a week of Interactive Brokers, Charles Schwab and TD Ameritrade all dropping their commission fees.Pedestrians walk outside an E*Trade Financial office in New York.announced Wednesday it will drop commission fees on online U.S. stock, ETF and options trades.Interactive Brokers, Charles Schwab and TD Ameritrade all dropping their commission

fees. Shares of all the brokerage firms have been getting hit this week on fears that a lack of commission revenue with hurt margins. E-Trade's new fee structure will start on October 7. Options will still have a 65 cents charge per contract. ""With this new commission schedule we are further raising the bar, delivering an unrivaled experience at price points that cannot be beat," said E-Trade chief executive officer Mike Pizzi in a press release.Bank of America estimates E-Trade gets about 17% of revenue from commission. TD Ameritrade generates 28% of revenue from commissions and Schwab generates only 8% from revenue.

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