TD Ameritrade CEO on Zero Commissions for Online Trading

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Retail brokers like Charles Schwab, E-Trade, TD Ameritrade have reduced their commissions to zero, but doesn't that affect their revenue?

Well, the CEO of TD Ameritrade (AMTD) - Get Report , Tim Hockey, said TD Ameritrade "makes revenues in other ways as well."

"Now we think we have great opportunity to grow even faster than we were growing before because it's an absolute level playing field for all competitors, big and small, the FinTech disruptors, the large players," he said.

Hockey said that they are competing on the client experience, which is helping them when it comes to revenue.

"We've got great platforms, great tools, great technology, great education for clients. And so we think we're going to grow even faster in the new world," he said.

On being asked on how the company is attracting the millennials on their platform as they tend to incline more towards the platforms like Acorns and Robinhood, he said, "We are absolutely hearing it from clients that said, 'I've been going to because price matters to a younger audience more so.' They'd been going to some of the newer entrants that have a zero price point, but they also don't have the experience or the capability, the breadth of the offering, the tools, the training, the education that I just talked about in a zero commission world."

"We're pretty sure that just the offering itself will attract. In fact, we've seen it in the last few weeks already," he added.

Watch the full interview above to know more.

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