By Joe Rauch
ORLANDO, Fla., Feb 4 (Reuters) - TD Ameritrade Holding Corp does not plan to lower its trading fees, but is monitoring recent cuts at two rivals, the chief executive of the second largest U.S. discount brokerage said on Thursday.
TD Ameritrade rivals Charles Schwab Corp and Fidelity announced trading fee price cuts in January and February, sparking a new round of price wars in the discount brokerage business.
'They came down to us, quite frankly,' Tomczyk told Reuters in an interview at the firm's annual investment adviser conference. TD Ameritrade charges $9.99 per trade.
'Schwab flaunted it right in their face; Fidelity had no choice but to respond,' Tomczyk said.
It is better for TD Ameritrade to wait it out as rivals chase each other lower, he said.
'You want to wait till everyone decides what they're going to do. You don't want to move, and then someone else moves lower,' said Tomczyk.
Charles Schwab, the largest U.S. online brokerage, in January said all online equity trades would cost $8.95. That is $4 less than it was charging before.
On Feb. 3, Fidelity cut its fees to $7.95 per trade for U.S. equities, down from $8 to $19.95 per trade.
The price war began in January when Schwab surprised investors and customers with its price cuts.
The shift makes things cheaper for online customers who trade in lighter volumes. More significantly, this could give many smaller investors a key perk once reserved for large, active online traders.
TD Ameritrade will watch pricing and investor demand, but would consider a fee cut only if online equities trading volume dips. 'We'll listen to our frontlines and respond accordingly,' he said.
(Reporting by Joe Rauch. Editing by Robert MacMillan)
((joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net ) Keywords: TDAMERITADE/FEES
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
ORLANDO, Fla., Feb 4 (Reuters) - TD Ameritrade Holding Corp does not plan to lower its trading fees, but is monitoring recent cuts at two rivals, the chief executive of the second largest U.S. discount brokerage said on Thursday.
TD Ameritrade rivals Charles Schwab Corp and Fidelity announced trading fee price cuts in January and February, sparking a new round of price wars in the discount brokerage business.
'They came down to us, quite frankly,' Tomczyk told Reuters in an interview at the firm's annual investment adviser conference. TD Ameritrade charges $9.99 per trade.
'Schwab flaunted it right in their face; Fidelity had no choice but to respond,' Tomczyk said.
It is better for TD Ameritrade to wait it out as rivals chase each other lower, he said.
'You want to wait till everyone decides what they're going to do. You don't want to move, and then someone else moves lower,' said Tomczyk.
Charles Schwab, the largest U.S. online brokerage, in January said all online equity trades would cost $8.95. That is $4 less than it was charging before.
On Feb. 3, Fidelity cut its fees to $7.95 per trade for U.S. equities, down from $8 to $19.95 per trade.
The price war began in January when Schwab surprised investors and customers with its price cuts.
The shift makes things cheaper for online customers who trade in lighter volumes. More significantly, this could give many smaller investors a key perk once reserved for large, active online traders.
TD Ameritrade will watch pricing and investor demand, but would consider a fee cut only if online equities trading volume dips. 'We'll listen to our frontlines and respond accordingly,' he said.
(Reporting by Joe Rauch. Editing by Robert MacMillan)
((joe.rauch@thomsonreuters.com; +1 704 692 5885; Reuters Messaging: joe.rauch.reuters.com@reuters.net ) Keywords: TDAMERITADE/FEES
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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