FAST FIVE: Wall Street Sets Up Scapegoat For Next Market Crash: 'Free Trades' Enticing Retail To Panic-Buy Stocks
They mention since Ameritrade Holding Corp.
“Retail traders have become manic.” Since the start of October, when E*Trade, TD Ameritrade, Charles Schwab slashed trading fees to zero, the S&P500 has soared 13%, and the Nasdaq 100 jumped 24%. Bloomberg fails to mention, and why would they, that rapid growth in the Fed's balance sheet exploded during the same time.
I'll do like $300.” TD Ameritrade's interim president and CEO Steve Boyle said there were 38 days where the number of trades topped 1 million in 4Q, up from 23 days in all of 2019. It's “a new world in discount brokerage where price no longer clouds the comparison for trades,” Boyle said last month.
TD's monthly volume had already risen 40% from a year ago, averaging 1.4 million trades per day.
Randy Frederick, a vice president of trading and derivatives at Charles Schwab, said increased trading by retail accounts represents confidence in the bull market. “It's partially driven by free commissions, but I don't think it's just that, because not everyone is offering free commissions,” Frederick said.