Further escalating an ongoing price war among brokers, San Francisco-based Charles Schwab will slash online stock-trading commissions by 35% for small investors.

The news raised fears that it would adversely impact Schwab's revenue. The largest online brokerage said it expects the price cut to trim consolidated revenue by about 1% from current levels during the first 12 months, Reuters reports. But Schwab did affirm its target of generating a 25% pretax operating profit margin this year and at least a 15% return on stockholders equity.

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