Has Robinhood the disruptor now become the disrupted with the news that JPMorgan Chase, the biggest bank in the US, is set to offer zero-commission trades, along with basic “robo-investing”? All three of the large platforms that slashed commissions a couple of years ago — Charles Schwab, TD Ameritrade and E*Trade — saw a drop in their share prices on Tuesday.
Biggest bank in US is a different class of adversary for young founders Robinhood shockwaves through the US’s online brokerage industry when it launched in 2015, offering free stock trades through a few clicks on an app. Placing an order is a simple electronic transaction, the young founders said, like sending an email. Why charge for that? Robinhood could make money from extras like margin loans and from investing clients’ cash balances on the side. Now the disrupter has been disrupted. News that JPMorgan Chase, the biggest bank in the country, is set to offer zero-commission trades, along with basic “robo-investing”, is a shock for the financial services industry. hurting too.
https://www.ft.com/content/69c30000-a5ed-11e8-926a-7342fe5e173f
