Schwab to drop commissions on U.S. stock, ETF and options trades, slamming online broker stocks

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Schwab to drop commissions on U.S. stock, ETF and options trades, slamming online broker stocks
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Schwab shares down 7% on commission-cut news; E-Trade, TD Ameritrade also hit

Charles Schwab Corp. shares SCHW, +1.01% fell sharply in premarket trade Tuesday, after the company said it is planning to drop commission on U.s. stocks, ETFs and options effective Oct. 7. The company said the decision to remove "the final pricing barrier to investing online" comes at the publications of Chuck Scwhab's new book, 'Invested.' "From day one, my passion has been to make investing easier and more affordable for everyone," Schwab said in a statement.

down 14% and E-Trade Financial Corp. down 12%.

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