TD Ameritrade cuts commission, adding to industry's fee war

Markets Associated Press

A price war among online brokerages is getting even more heated, to the benefit of individual investors.

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TD Ameritrade said late Tuesday it would cut its commission for online stock and ETF trades to $6.95 from $9.99 on the heels of similar cuts by rivals.

Earlier that day, Fidelity announced a cut to $4.95, and rival Charles Schwab matched the price in a matter of hours. It was Schwab's second cut in less than a month.

It's the biggest shift in pricing for the industry since 2010, when another round of price cuts occurred, and analysts say the price war may be still in only the early stages. Brokers are also cutting costs for investors to trade options.