Trend Report

Schwab’s Acquisition Of TD Ameritrade Spells Further Consolidation In The Brokerage Industry

Vijay Raghavan
 and  two contributors
Dec 09, 2019

Summary

The ongoing price war on trading commissions has weakened monoline firms like TD Ameritrade and E-TRADE, which lack diverse revenue streams. The acquisition of TD Ameritrade by Schwab brings more self-directed investors to Schwab, and they face a complex decision on which trading platform to keep. Schwab will target the 51% of TD Ameritrade’s customer base who are willing and able to pay for financial advice. Schwab will acquire a more modern advisor technology platform from TD Ameritrade compared to its own. The price war continues to leave E-TRADE vulnerable and a likely acquisition target.

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