Personal Finance

TD Ameritrade Jumps Into Price War With Fidelity and Schwab

Investors want their services cheap or free these days, whether it’s an adviser, a mutual fund, or a trade.

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By Suzanne Woolley

February 28, 2017 at 5:01 AM UTC

Updated on

February 28, 2017 at 6:32 PM UTC

This article is for subscribers only.

Another day, another clash of the brokers' broadswords.

One day after Fidelity Investments announced a fee cut for individual investors, and 12 hours after Charles Schwab Corp. followed suit, TD Ameritrade Holding Corp. waded into the fray. Late Tuesday night, the company said it had lowered commissions on standard online retail trading to $6.95, from $9.99, a trade. The lower rate also applies to options trades, though the company maintained its 0.75 cent fee on individual contracts.

The rates don't match those of its rivals. Fidelity and Schwab lowered retail commissions on online trades to $4.95, from $7.95 and $6.95, respectively, and moved from a fee of 0.75 cents per individual options contract to 0.65 cents. Fidelity is the nation's largest online retail brokerage, with 17.9 million accounts and $1.7 trillion in client assets as of Dec. 31, 2016.