Online brokerage firms including Charles Schwab, TD Ameritrade and E-Trade sank on Tuesday after CNBC reported that J.P. Morgan Chase will offer a new digital investment app with free trading.
Shares of Charles Schwab fell 4.6 percent, TD Ameritrade fell 5.5 percent, E-Trade fell 5.5. percent and Interactive Brokers fell 4.3 percent.
J.P. Morgan will launch its new service next week. All customers get 100 free stock or ETF trades in the first year. Those with Chase Private Client get unlimited trades.
The new program comes bundled with free or discounted trades, a sophisticated portfolio-building tool and no-fee access to the bank’s stock research.
The brokers did not immediately return a call for comment on JP Morgan’s new app.
–With reporting by Fred Imbert and Hugh Son.
