NEW YORK (AP) – It keeps getting cheaper to invest.
Fidelity on Tuesday became the latest company to cut its fees in an ongoing industry battle that’s helped mom-and-pop investors keep more of their own dollars. Rival Charles Schwab matched the price cut in a matter of hours.
Fidelity said it will cut its commission for retail brokerage investors trading U.S. stocks and exchange-traded funds online by more than a third to $4.95 from $7.95, among other fee cuts. Fidelity is the country’s largest online brokerage firm with 17.9 million accounts and $1.7 trillion in client assets.
It was only earlier this month that Schwab cut its base commission for online stock and ETF trades to $6.95 from $8.95, a move that many investors anticipated would lead to a pricing war. Just hours after Fidelity made its announcement, Schwab said on Tuesday it will drop the commission to $4.95, which matches Fidelity’s cost.
“We feel that this is going to put more money in the pockets of retail investors,” said Ram Subramaniam, president of Fidelity’s retail brokerage business.
