iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,864 Blog Posts

Online Brokers Smashed After Schwab Announces Trade Commissions Reduced to Zero

What sort of fucking planet do we live on anyway? What will full service brokers do now? Fucking Schwab announced they are reducing trade commissions to ZERO, effective now — sending shares of other online brokers into the shitter.

“This is our price. Not a promotion. No catches. Period,” added CEO Walt Bettinger.

The firm made about $400m in fees from their EXPENSIVE $4.95 commissions last year and now they’re fucked. This is all happening because millennial favorite Robinhood came out a few years ago with a zero commish platform. Granted, they fuck people over in other ways, namely privacy related, but the kids love it.

This of course is all about luring millennial and zoomer faggots back into the fold — a grab for assets. They know, the brokers, that young folks couldn’t give a shit about their platform. Bear in mind, these are people who like Minecraft and other retro-retarded software games and apps. They’re accustomed to low tech garbage, which is why they love Robinhood.

Bottom line: full service brokers are rampaging throughout their offices today, 100% dinosaur’d, in the streets and fucked. Investment advisors are still able to hoodwink people into believing their fees are worthwhile. They will go by the wayside too, once AI gets good enough to replace them. Then the brokers will truly drown in misery, for they’re now heavily dependent upon advisors and their assets.

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12 comments

  1. numbersgame

    Holy f***: they actually includeded **commission free option trading** as well. No minimu account size. Time to switch to Schwab.

    Sounds to me like “the next NFLX” (see HMNY, STMP, NFLX).
    -> Bye, bye, XLF -> bye-bys SPY.

    In other news, note HYG’s gap down and drop, and alos TLT moring drop – and **recovery**

    Yup, full bear time now. I’m not going to tell you how much my trading account is up today, because no one woudl believe me.

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  2. gsofield

    The commissions are gravy. They make the bank on selling everyone’s orders. Like they could give a fuck about their customers. This was a calculated business move not a soft and snuggley move to wow their customers. Trade more…its free 😉

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  3. ferd

    If I didn’t know for certain that we have a free and fair, auction market, the pre-mkt and pre-10am trade this morning would have made me suspicious about some guy manipulating price for one final? distribution of shit to the unwashed.

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  4. ferd

    BTW, zero commissions is not new news.

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    • numbersgame

      It is for the major brokers. Robinhood and IB have a lot of downsides.

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  5. spaceman

    I’ve been using Schwab for almost ten years I know where the winners are (even though my trading sucks) just like I knew to go headlong into physical gold and silver coins the winner of the next decade.

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  6. dragun

    Order flow and cash sweeps is the gravy

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    • numbersgame

      Fidelity has a govt-bond cash sweep that pays between 1.5% and 2%, but most of the others pay almost nothing.

      Now we just need to add a transaction tax and/or 2-sec minimum before you can cancel orders to get rid of the HFT “tax” that everyone pays Wall Street..

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  7. bravo

    Olde Discount, if anyone remembers, tried this in the early 90’s. when spreads were measured in 1/8ths. Anyone remember “night credits”?

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  8. torero

    I have Schwab & their Checking account with direct deposit. The whole time I’ve been transferring 1K a week to Interactive Brokers.

    You really gonna buy a fking $20 stock, and pay $10 commission for entry & exit? Each options contract traded @ $10?

    From a business prospective, they should have just minimized the fees. That $1 fee at Interactive has probably earned them a fortune. Without me much noticing or caring.

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  9. torero

    Whole lot active traders use TOS with Ameritrade… but they negotiate the fees way below the rate of $5.

    Millennial’s are far too retarded to ever learn this fact. Nor are they capable of speaking by phone ROFL.

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  10. bob smith

    This just in from Ameritrade:

    We’ve turned commission fee into commission FREE | $0.00 commissions

    The investing and trading experience you know and love is getting even better. Starting on October 3, you’ll also enjoy:

    $0 commission on online equity trades
    (exchange-listed U.S. stocks)
    $0 commission on online ETF trades
    (domestic and Canadian)
    $0 commission on online option trades
    (Contract fees now only $0.65, plus no assignment or exercise fees.)

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