Fidelity has cut its commissions to trade stocks and mutual funds to $4.95 from $7.95, a 38% reduction for its retail clients. In short order, rivals Schwab and TD Ameritrade announced similar fee cuts. The industry's largest players are seemingly stuck in a price war, hoping to retain customers and monetize via other service offerings.
Robinhood, a commission-free trading app for retail investors, said they were "happy" that Fidelity lowered its fees. "Ideally, they would have eliminated them altogether, along with the required $2,500 account minimum," it said in a statement.