Broken Brokers

Shares in TD Ameritrade and other discount brokers tanked Tuesday after market giant Charles Schwab eliminated commissions on trading stocks and other assets, threatening the industry’s profits. TD Ameritrade lost 26% to $34.64, a three-year low, while ETrade fell 16%. Schwab itself closed down 10% Tuesday. Schwab’s move is the latest slash in an

industry battle that’s drastically cut the cost of investing. Schwab said commissions for mobile and web trading of stocks and ETFs listed in the U.S. and Canada will drop to zero from $4.95. The industry has been slashing fees across investments for years, as customers demand lower expenses. Schwab’s profit rose 8% in the second quarter. It boasts 12 million active accounts, compared to 11 million for TD Ameritrade and 7 million for ETrade

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