Charles Schwab negotiates to buy TD Ameritrade, source said Thursday by Becky Quick for CNBC. The agreement could already be announced today.
TD Ameritrade's shares rose 20% in the grocery trade report. Schwab's shares fell by 3%.
An agreement between Schwab and TD Ameritrade would consolidate an industry that has undergone major disruption. In recent months, all major brokerage firms have announced zero commission plans.
Schwab was the first major player to step in, eliminating commissions in early October. Schwab's competitors, including Fidelity and TD Ameritrade, followed quickly.
Calls to Schwab and TD Ameritrade did not return immediately.
Non-charging of trades is beneficial for consumers, but business mediation is left. ways to keep profits. An agreement between Schwab and TD Ameritrade would create a monster with combined assets worth $ 5 trillion.
Large brokerage firms have been under pressure to have zero shares since 2013 when Silicon Valley start-up workers offered free stock trading. Since then, the Vanguard Group has lowered fees for trading in stock exchange funds, and J. P. Morgan Chase has started its own free trading application. Interactive Brokers also announced a free product called IBKR Lite. Other players are ETrade Financial.
Schwab and TD Ameritrade are the two largest publicly traded discount brokers. Schwab has a market capitalization of $ 57.5 billion and ameritrade has a market capitalization of $ 22.4 billion. by 3.3% and E- sharp increase in trade 6.8%.
– Maggie Fitzgerald CNBC contributed to this report.