$500! $300! $59.99! $29.95! $10.99! $5!
There's a rumble in the financial jungle going on, Fools. Discount brokers left and right are bidding against each other in an auction to purchase your trading loyalty. And the best part (assuming you don't own stock in the brokers) is that all the prices are being bid down, not up.
Last month, fellow Fool Rick Munarriz wrote about Ameritrade's
On Friday, Schwab
Both of those price cuts should suffice to put Fidelity and Schwab in contention with the rest of the discount broker pack. Toronto-Dominion's
The upshot is that all of these companies are converging around a common price point: $10 plus a little. The premium services may stem their customer turnover by making this kind of move, but win over new market share? Not likely.
True cheapo traders (like your Fool-y), will still seek out cheaper alternatives. JPMorgan's
In other words, investors in the discount brokers shouldn't think the worst part of this price war is over. There's still room down in the cellar -- the only question remaining is which of the "name" brands will start down the stairs first.
Fool contributor Rich Smith has no position in any of the companies mentioned here. Caveats: He does maintain brokerage accounts with Ameritrade and Freetrade.com, and Schwab is a recommendation of the Motley Fool Stock Advisor .