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One big casualty of Fidelity Investments' buckle on zero-fee commissions may be the zero-fee RIA custody tailwind of three decades duration

With Pershing last to collect trade revenues, Schwab, TD Ameritrade and Fido have leverage and ' I think Fidelity will be the first to try,' Kitces says.

Author Oisin Breen
October 15, 2019 at 8:42 PM
no description available
Fidelity's Abby Johnson took eight days to succumb Chuck Schwab's commission torpedo but those days may have been put to good use.

Related Moves

TD Ameritrade's board suddenly pushes out Tim Hockey after his big misread of RIAs; Tom Bradley name-dropped as successor

The CEO broke the TD promise never to compete with RIAs, took it back and got sent packing

July 23, 2019 at 4:30 AM

Robinhood gets 'brilliant' upper manager -- and a spare CEO -- by nabbing TD Ameritrade's ex-thinkorswim top exec, hopefully to throw a lifesaver to Robinhood's sinking stock

The Menlo Park, Calif., firm nabbed Steve Quirk as first-ever chief brokerage officer to 'bridge the gap between academia and reality.'

January 6, 2022 at 10:33 PM

Oisín's snippets: Charles Schwab brand goes up on Omaha's TD Ameritrade stadium, home of college baseball world series • Interactive Brokers lands an RIA custody insider, Charlie Latimer, to climb the custodian ladder

The TDA brand lives on until the techies figure out how to make two systems into one, but change is in the air in Omaha, while Interactive Brokers gets a leg up in the custody business with a new hire.

December 27, 2021 at 9:58 PM

Fidelity Investments is paying 2,000 employees to hasten their corporate exits, including high-profile RIA overseer, Sanjiv Mirchandani, as part of its shift to a digital future

The Boston giant offered voluntary buyout packages and the 4% of staff who accepted will leave by June 30 to give other staff room to grow careers and make room for hires.

June 24, 2021 at 5:39 PM

See more related moves

Mentioned in this article:

TD Ameritrade
Asset Custodian
Top Executive: Tom Nally

Jeff Spears

Jeff Spears

October 16, 2019 — 5:43 PM
We didn't have to wait long to understand why Schwab cut commissions to zero. <a href="https://seekingalpha.com/news/3450717-schwab-q1-gains-net-interest-revenue-increase" rel="nofollow">https://seekingalpha.com/news/3450717-schwab-q1-gains-net-interest-revenue-increase</a>
Peter Giza

Peter Giza

October 16, 2019 — 6:22 PM
Oisi IMHO it's a brilliant move for the following reasons. 1) Creates enormous buzz and confusion. 2) It forces everyone to do it, sets them back on their heels strategically and forces a quick tactical decision. 3) Takes all the stupid management of minimizing fees off the table for advisors. 4) Creates a more insulated fee structure that is less subject to the whims of the market and other custodian pricing. 5) It's a fee that is soon forgotten whereas trading fees are always right there in your face. 6) Opens up some interesting opportunities for fintech players. Pete Pete Giza | CPO | AdvisorPeak
Brian Patrick Murphy

Brian Patrick Murphy

October 16, 2019 — 6:42 PM
I agree with Pete, I think this opens up some interesting opportunities for nascent Fintech players (not those already established per se) but up and comers.


October 17, 2019 — 10:30 AM
Am I missing something, this decision puts mutual funds at a blatant disadvantage on the custodial platforms. From what I have read the investor will be charged a transaction fee for all buys and sells while ETF’s and stock trades will be executed for free. To add insult to injury, the platforms charge mutual fund families approximately 10 bps of assets while ETF’s and Stocks pay nothing.

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