TD Ameritrade and E-Trade In Merger Talks

Reports in the Wall Street Post which indicate that E-Trade Financial, the pioneering online discount broker with Silicon Valley roots, is in merger talks with TD Ameritrade Holding had shares of both companies ticking upward Wednesday. A merger of the two would create a broker with roughly 11 million accounts, surpassing San Francisco-based Charles Schwab as the online leader. Currently, Schwab has about 6.9 million, Ameritrade has 6.3 million and E-trade has 4.7 million brokerage and banking accounts.

The Post, which cited "people familiar with the matter," reported today that E-Trade and Ameritrade have been in serious discussions for weeks but still aren't yet close to a deal. Although the two had been in talks before, Ameritrade is now under pressure from two hedge funds with significant investments to work out a deal, which just might prove to be enough of a catalyst to get the talks concluded. If its rivals pass an antitrust review and merge, Schwab would face competitive pressure. During a conference call with analysts in July, Schwab Chief Executive Charles Schwab dismissed speculation his firm might merge, citing its internal growth opportunities.

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I will have to transfer my account if they merge. Etrade was really bad for higher fees and tons of hidden fees that auto debit your account. I went round and round with them to get money back when they sold shares to get a fee for not making enough trades a quarter. The bad thing, they said they sent me several emails but when the guy started looking for a record of them he could not find it. Too later after the shares were sold.

Mergers destroy competition and profit only the corps and not the consumer or in this case investors. Honestly I don't think this sort of thing should be allowed

alot of people doing the online investing thing. Dunno if this merger is such a good thing. Now there will only be two popular online brokers dueling it out....