(Adds details from statement, adds rivals share movement)
Oct 1 (Reuters) - Discount brokerage company Charles Schwab Corp said on Tuesday it is eliminating commissions for online trading of stocks, ETFs and options listed on U.S. or Canadian exchanges.
The company's shares fell 10% in early trading, dragging down those of its rivals. TD Ameritrade shares slumped 22%, while E*Trade slid 19%.
Schwab will reduce the commission to zero from $4.95 per trade, starting Oct. 7, the company said.
"We estimate that this pricing reduction is equivalent to approximately $90-100 million in quarterly revenue, which roughly translates to 3-4% of total net revenue," Chief Financial Officer Peter Crawford said in a statement.
The company, which provides brokerage and financial advisory services, reported an 8% year-on-year jump in second-quarter net income at $937 million.
It managed total client assets of $3.75 trillion, as of July end.
(Reporting by C Nivedita in Bengaluru; Editing by Sriraj Kalluvila)