From Staff and Wire Reports
Charles Schwab is in talks to buy TD Ameritrade, CNBC reported today, a blockbuster deal that would combine two of the largest online brokers.
If consummated, the deal would create a brokerage firm with $5 trillion in assets. The blockbuster deal could be announced today.
Both Schwab and TD Ameritrade adopted zero-fee trades for stocks and ETFs in recent weeks. The moves raised questions about how online brokers will make money. Schwab has been moving into asset management as a way to drive fees.
Schwab stock rose 11% before the open. TD Ameritrade stock leapt 27%. E-Trade stock fell 3% while Interactive Brokers stock climbed 2%. Schwab stock and its peers are well off 52-week or all-time highs as the race to zero-fee trades has taken a toll on profits.