How Zero Commissions Will Affect E*Trade's Growth
Online broker pioneer E*Trade (NASDAQ: ETFC) is joining the ranks of Robinhood and other brokers by offering zero commissions on all stock trades. This move was inevitable, as other large brokers like Charles Schwab had already waved the white flag in the zero commission broker wars. The move allows E*Trade to offer something consumers have come to expect.
E*Trade is a hot growth story, being named to Fortune's 2019 list of Fastest-Growing Companies. Furthermore, the company had guided for $7 in earnings per share for 2023 -- a sharp increase of 69% from current trailing-12-month EPS of $4.13. But that was prior to cutting commissions on trades. Now investors wonder whether E*Trade has much of a future at all.
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Source Fool.com