Schwab cuts commissions again to match Fidelity

Charles Schwab announced Tuesday that it will lower its online trade commissions for U.S. stocks and ETFs to $4.95. Almost four weeks ago, the firm lowered its trading fees to $6.95 from $8.95.

The announcement comes after competitor Fidelity announced it lowered trade commissions by $3 to $4.95 on Tuesday.

"We never want commission costs to be a barrier for investors deciding which firm can best serve their needs," said Walt Bettinger, Schwab (SCHW) president and CEO in a statement Tuesday.

The reduction will go into effect on March 3.

Schwab, which has more than 10 million accounts, also said it would reduce options pricing to $4.95 plus 65 cents per contract.

The fee cuts make the two firms' commissions lower than competitors TD Ameritrade (AMTD) and E*Trade.

On Tuesday evening, TD Ameritrade announced it will cut its commissions for online equity and ETF trades to $6.95, down from $9.99, starting March 6.

E*Trade charges $9.99 for online U.S. stocks and ETF trades.