Schwab’s move also may prompt Ameritrade and E*Trade to reconsider a merger, Ritter said.
Schwab previously doubled its suite of no-commission ETFs in March, bringing its total to more than 500 at the time. BlackRock Inc. iShares products were added to its platform, Schwab ETF OneSource, with 90 funds. Several fund issuers including State Street Global Advisors, Invesco Ltd., WisdomTree Investments Inc., J.P. Morgan Asset Management and Pacific Investment Management Co. also planned to add to their commission-free offerings already on the platform.
For Schwab, offering free trades is the ultimate extension of its roots in the 1970s as a discount broker.
“Eliminating commissions ensures my ultimate vision is realized -- making investing accessible to all,” Schwab’s billionaire founder and Chairman Charles Schwab said in the statement.
--With assistance from Emma Vickers.
This article was provided by Bloomberg News. It was updated by Financial Advisor.