If it was Vanguard's intention to re-ignite a commission war among e-brokers that had largely reached a stalemate in 2017, then it succeeded in spades. See: How many RIAs are there? No, seriously, how many? E*Trade followed the same day TD's went live on Oct. (As we go to press, Fidelity has also gone all in on zero commissions.) That left his fellow chiefs at TD Ameritrade and E*Trade no choice but to follow suit. See: Fidelity and Schwab one-two $4.95 price punch staggers industry with execs willing to go 'far, far, far further. Schwab CEO Walter Bettinger took up the challenge, taking Schwab's trades to zero on stocks and ETFs. But as this article points out, the peril he faces can be summed up by a player, perhaps, even more determined to win consumer trust at all costs - The Vanguard Group. It's a big bet that only Chuck can be content to own. But one ignored factor hiding in plain sight is Chuck, the chairman and original contrarian who launched the discount broker revolution. The news was uncharacteristic of Walt Bettinger - his chosen successor-which suggests the move came straight from the top. Meanwhile, Wall Street has been unnerved. Schwab shares tumbled to $35, about where they were in July of 2015. But if that is Schwab's plan, then it sure is throwing up a big smokescreen its three top executives offered three versions of what triggered the move. But what happens when clients start asking about commissions in a world of zero commissions? Schwab is bound to gain some ground. That said, these brokers are pretty sticky. LPL, Pershing and Fidelity pretty much can't lower commission rates because brokers rely on the revenue. Less talked about, but potentially most important, is what it does to independent broker-dealers like LPL Financial and the clearing firms like Pershing and Fidelity Clearing & Custody. Goodbye, it seems, to fellow discount brokers, too, like E*Trade and TD Ameritrade - turning the rivalries into a service game where Schwab is strong. See: Schwab hopes to blend into the subscription world of Netflix, Amazon and Apple by dumping asset-based fees and wooing millennials with Intelligent Portfolios for $30 a month Most obviously, it undermines the efforts of Robinhood and other super-discount brokers for whom zero commissions was their main schtick. Schwab is deepening its subscription and freemium commitment in a way that delivers massive body blows to competitors at all levels. Brooke's Note: The scenario that makes Chuck Schwab's decision to zero out $400 million a year in revenues is interesting four-dimensional chess.

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