TD Ameritrade to Buy Scottrade in $4 Billion Deal
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TD Bank Group, one of TD Ameritrade’s largest shareholders, will acquire Scottrade Bank as the first step in TD Ameritrade’s purchase of Scottrade Financial Services. CreditShannon Stapleton/Reuters
TD Ameritrade announced on Monday that it would acquire Scottrade Financial Services, a rival discount brokerage, for $4 billion, in a bid for scale at a time when small investors are losing their taste for stock trading.
The deal reflects the ongoing evolution of the investment business.
Both companies trace the roots of their business model to a regulatory move in 1975 that banned fixed brokerage commissions, giving rise to a clutch of firms, including Charles Schwab & Company, that offered stock trades with discounted commissions. Discount brokers continued to flourish in the dot-com era, when individual investors, day traders and smaller advisers helped drive a boom in online trading…
TD Ameritrade to Buy Scottrade in $4 Billion Deal
