As recently as last October most of the online trading platform such as Charles Schwab agreed to change their commission structure to zero! With e-trade platform still on commission based and they haven’t decided to change their structure yet. Is this a competition with fintech companies such as Robinhood?

It certainly is and we are on the verge of looking at emergence of fintech companies making a breakthrough with their platforms. The traditional companies are feeling the squeeze and it’s coming from no other place than fintech companies.

The Fintech are making a thrive and Charles Schwab and others are looking to stay in the competition for a longer haul with their endurance. Fintech companies are fresh, young, and powerful athletes in financial industry with their features and attractive to teens and younger generation.

This forces the older financial companies to change their features and mission to be comparable and keep their current customers at the moment. Robinhood at the moment have 6 million users and Accorn their fierce competitor is at 3.7 million users.

With e-trade being in business for more than 35 years their number of users is at 3.7 million. This shows that fintech are able to pull the muscle from overseas and other places as well to gain attraction.

The feature of zero commission structure shows how fintech companies are gaudy with their implementation not just as the business side rather the efficiency and compatibility. This placed the traditional finance companies on notice for their company.

This is nothing new of how technology companies are showing their power in every industry. Some industries are becoming aware of their competitors in tech industry and changing their business functions as Charles Schwab did.

Others such as Toys R Us can take the blame and lose their corporation and move on. This shows that if your corporation is not adopting into new structure of business then you are going to lose it. People need to understand the reasoning behind capitalism can be cruel and emotionless. All you have to do is take it granted when you have it. Fintech are making a strive and have nowhere to go at the moment!