E*Trade/TD Ameritrade?

Wednesday, August 22, 2007 | 10:15 AM

ETD Trade: This morning's WSJ reports:

The online brokerage industry, which underwent a wave of consolidation after the bursting of the dot-com bubble, may be headed for another shakeout, with giants TD Ameritrade Holding Corp. and E*Trade Financial Corp. holding merger discussions.

A merger of the two online brokers would create a dominant player in what has been a highly fragmented industry, with dozens of smaller companies battling for market share. As a result, it could reduce some of the fierce competition that has benefited consumers by driving down the cost of online trading but has squeezed the industry by chipping away at its profit margins.

There is some question as to whether this will get through the FTC.

The bigger concern is that this is merely a temporary fix. Neither company has responded well to the change in individual investor behavior and character since the 2000 market crash.   

Management of both firms are strongly advised to read our 2005 white paper (excerpted here: On Line Trading: A Business Plan for the future). It accurately foresaw the decreased trading volumes and increased competition in the online trading  space, and is even more relevant of a biz plan today than when it was written.

>


Source:

TD Ameritrade In Merger Talks With E*Trade
By SUSANNE CRAIG and DENNIS K. BERMAN
August 22, 2007; Page A1
http://online.wsj.com/article/SB118774911334904929.html

Wednesday, August 22, 2007 | 10:15 AM | Permalink | Comments (10) | TrackBack (0)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post

bn-image

TrackBack

TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00e54ecde9478833

Listed below are links to weblogs that reference E*Trade/TD Ameritrade?:

Comments

In the spirit of naming combinatorics, let me be the first to suggest a identify for the new firm..

TD Amer-E*Trade

jb

Posted by: James Bednar | Aug 22, 2007 10:19:01 AM

The comments to this entry are closed.



Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

Archives

Complete Archives List

Blogroll

Blogroll

Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:


Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites

FeedBurner


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo

Disclaimer

Disclaimer

Odds & Ends

Site by Moxie Design Studios™

FeedBurner