Brokerages will cumulatively lose billions of dollars in revenue.
E-Trade, on the other hand, relies on commissions forof its overall business; it forecast a $75 million hit to its revenue in the past quarter.
In a note last week, Harris downgraded the discount brokers across the board, predicting a larger revenue hit: Trading fees will drop to 7% from 16% of E-Trade’s total revenue and to 10% from 24% of TD’s total revenue. Harris also points out that among these brokers, Schwab, with more than $10.7 billion in annual revenue, relies less-heavily on trade commissions and could subsequently beHow big of an impact it has on stocks—which have all dropped since their respective announcements: TD , Schwab and E-Trade .for years as they jostle to stay competitive. This has resulted in a price war to meet growing demand for low-fee investing products.
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