A move by major brokerages this week to scrap trading fees could be a direct hit to Robinhood, the start-up that kicked off the trend six years ago.
Charles Schwab, TD Ameritrade and E-Trade all announced this week that they would no longer charge for individual stocks, ETFs and options trades. Analysts say the announcements threaten Robinhood’s ability to differentiate, and puts pressure on the start-up to expand more deeply into financial services.
“Their business model is now in serious jeopardy,” UBS senior equity analyst Brennan Hawken told CNBC. “Models like Robinhood and others seem unlikely to press ahead at their current pace.”
