Charles Schwab Corp expects earnings per share in the current quarter to be 2 cents to 4 cents lower than in the third quarter, due to lower interest rates and slower trading in recent weeks, sending its shares down 2.7 percent.

The largest U.S. discount brokerage also expects to waive about $108 million in fees on its money market funds, up from a previous forecast of about $100 million, it said on Monday.

The estimate suggests Schwab will log EPS of 13 cents to 15 cents in the fourth quarter, down from 17 cents in the previous quarter and from 27 cents last year.

Continued declines in the rate environment have led to heightened revenue pressures ... and client trading volumes have slowed in recent weeks, Joe Martinetto, the company's chief financial officer, said in a statement.

Daily average trading in November was down 11 percent from the previous month, and down 27 percent from last year, when markets were still reeling from the financial crisis.

Schwab shares dropped to $17.93, their lowest level in more than a week. Analysts lowered their earnings expectations but noted that the company is well placed to benefit when rates rebound.

The company faces near-term cyclical and rate headwinds, David Trone, analyst at Macquarie, said in a note. However, we remain bullish on Schwab's long-term prospects and we'd review our opinion on the stock around $17.

(Reporting by Jonathan Spicer; editing by Gunna Dickson)