Charles Schwab, Ameritrade and E-Trade's total revenues can be broadly classified into three categories:Net Interest Income:
It is the interest earned on loans and margin receivables net of interest expenses on funding sources. In 2018, net interest Income contributed 57%, 23%, and 64%
to Charles Schwab, Ameritrade, and E-Trade
’s total revenues, respectively.Investment Product Fees:
The brokerages earn fees from managing proprietary money market mutual funds, ETFs, and advisory services, in addition to some third-party funds. In 2018, asset management fees had a contribution of 32% and 10%
of Charles Schwab and Ameritrade
’s total revenues, respectively. (It is recognized within Fees and Service Charges for E-Trade
A trading commission is charged for executing trades in stocks, bonds, options, futures, etc. In 2018, trading revenues had a contribution of 8%, 36%, and 17%
of Charles Schwab, Ameritrade, and E-Trade
’s total revenues, respectively.
Besides these 3 core revenue streams, the brokerages report any other revenues and fees they earn as "Other Fees and Revenues"
Note: 1. Ameritrade's fiscal year ends in September and the data is presented per reported basis.
2. The base value in comparison charts represent Charles Schwab's parameters. Dotted and dashed-dotted lines represent Ameritrade and E-Trade as per associated chart legend.