Trading fees will soon be a memory
The first two decades of this century were all about the internet challenging and disrupting traditional businesses. So far, the financial services industry has largely held its ground.
That's going to change in the 2020s with fresh challenges on every front. Online banking is rapidly expanding, payment processors are wading into lending and new models of investment banking are gaining traction.
Trading commissions continue to be whittled down with Robinhood gaining traction. Exchanges have built an oligopoly and are charging high fees for day but a group of nine banks, brokerages and HFT firms set to challenge the New York Stock Exchange and Nasdaq, according to the WSJ.
Morgan Stanley , Fidelity Investments, Citadel Securities, high-speed trader Virtu Financial Inc. and retail brokers Charles Schwab Corp., E*Trade Financial Corp. and TD Ameritrade Holding Corp are banding to gather to create a new venue called Members Exchange or MEMX. The announcement will come later today.
