Price deflation hitting Wall Street & that’s bad news for the fat cats

On Tuesday morning, Fidelity Investments announced it’s lowering online commissions for trading U.S. stock and ETFs to $4.95 from $7.95, a 37% decrease. Fidelity retail brokerage president Ram Subramaniam called this “a bold move” in an interview with Yahoo Finance.Shortly after Fidelity’s announcement, Charles Schwab (SCHW) announced it’s reducing its online commissions for stocks and ETF to $4.95 from $6.95, a 28% decrease.

“We never want commission costs to be a barrier for investors deciding which firm can best serve their needs,” Schwab’s CEO Walt Bettinger said in a statement. “In addition to low commissions, our industry-leading low-cost S&P index mutual fund is nearly five times less than Vanguard and three times less than Fidelity.Full story

This is one place, where Artificial Intelligence will play a great role. You will eventually never have to speak to a broker; remove the R and you get the word BROKE, and that is where most end up when they listen to their brokers. Prices will continue to drop as the trend is negative and there is no sign of change.

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