TD Ameritrade and other brokerages' shares tank after Interactive Brokers unveils service offering commission-free stock trades

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TD Ameritrade and other brokerages' shares tank after Interactive Brokers unveils service offering commission-free stock trades
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Interactive Brokers announced a new product that will provide commission-free trades.

Shares of TD Ameritrade sunk 6.8%, Charles Schwab dipped 1.7% and ETrade Financial fell 5.6%.

Interactive Brokers said its new product, called IBKR Lite, will "provide commission-free, unlimited trades on US exchange-listed stocks and Exchange Traded Funds," the company said in a release. IBKR Lite will have zero commissions on U.S. stocks and ETFs, no account minimums, no inactivity fees, free market data, in addition to other features, the company said."In order to attract a broader audience, we wanted to remove any impediments to opening an IBKR account," said Thomas Peterffy, Chairman and CEO of Interactive Brokers in a release.

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