The Internet Stock Blog: Online brokerage price cuts continue - SCH cuts options fees
One of my regular readers recently pointed to the weak performance of our online brokerage stocks. We own ETrade and Ameritrade and they have each traded down in recent weeks. What has basically happened is that Schwab gave up on charging higher rates for "premium services". Schwab has made several price cuts and ET and AMTD responded.
Morgan Stanly was quoted in the article as believing the price competition is largely over and consolidation in the industry may occur. As I expect a long sustained bull market ahead, I will continue to hold ET and AMTD. These companies should see significant trading increases when the market finally breaks out of the current trading range.
Thursday, March 24, 2005
The Internet Stock Blog: Online brokerage price cuts continue - SCH cuts options fees
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