US brokerages' race to zero fees points to a bigger war to come

New York

FIDELITY Investments Inc and Charles Schwab Corp made moves in quick succession on Tuesday to slash trade commissions, accelerating the race to zero fees and foreshadowing a more important battle to win clients for potentially more lucrative services.

Fidelity cut its commissions to trade stocks and exchange-traded funds (ETF) to US$4.95 from US$7.95 a trade, a 38 per cent reduction for its retail brokerage clients.