On Tuesday, both Fidelity and Charles Schwab (SCHW) - Get Charles Schwab Corporation Report cut their investment fees helping investors to keep more of their dollars in their pockets.

Fidelity will reduce its commission for retail brokerage investors trading U.S. stocks and exchange-traded funds (ETFs) to $4.95 from $7.95.

Just hours after Fidelity announced its plans to slash fees, Charles Schwab cuts its commission to $4.95 from $6.95, matching Fidelity.

"We feel that this is going to put more money in the pockets of retail investors," president of Fidelity's retail brokerage business Ram Subramaniam said. 

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