https://wccftech.com/charles-schwab-takeover-ameritrade-synergy/

The United States Federal Reserve cut interest rates last month as it stated that economic growth in the country is on the right track. While lower interests help businesses, they don't particularly favor stockbrokers as they rely on interest earned from client deposits. Now, half a month after the Fed's decision, brokers Ameritrade (NASDAQ:AMTD) and Charles Schwab Corporation (NYSE:SCHW) have agreed to join forces. Take a look below for more details.

In addition to the Federal Reserve's interest rate cut, brokerages also made a big change in October. Interactive Brokers Group, Charles Schwab (NYSE:SCHW) and TD Ameritrade announced that they would stop charging commissions made on trades of investment funds listed on the stock market. This move directly hurt the firms' revenue stream, and a policy rate cut made things more difficult for Ameritrade, not only the interest rate hurt the amount it earned from user deposits, but a decision to eliminate commissions also harmed another key earner for it.