
Charles Schwab to buy TD Ameritrade - sksk
https://www.cnbc.com/2019/11/25/charles-schwab-to-buy-td-ameritrade-in-a-26-billion-all-stock-deal.html
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Someone1234
This is positioning them to increase prices. CS is tired of discount brokers
like Ameritrade under-cutting them, so they're going to try and buy out a
handful and see if they can pay for it with fee increases.

How long until Robinhood gets purchased? I'd be surprised if it wasn't
consolidated this time next year.

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whyhow
I think you actually have things backwards. Charles Schwab cut their trading
fees before Ameritrade did and this move to $0 trading fees affected CS less
than Ameritrade because CS makes more money from other sources.

An interesting article about it:
[https://www.bloomberg.com/opinion/articles/2019-11-21/schwab...](https://www.bloomberg.com/opinion/articles/2019-11-21/schwab-
broke-ameritrade-to-buy-it)

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beatgammit
I think most brokerages make the bulk of their money on interest for margin
trades and management fees. I read about Fidelity's new 0% ER funds (e.g.
FZROX), and it's a loss leader for their larger margin business.

Schwab has a good business going with offering mutual funds and retirement
accounts, but I don't think they have a solid margin business, but I think TD
Ameritrade does, which is likely why they're making this acquisition.

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lawrenceyan
This must really hurt for E-Trade. They're getting boxed in on both sides now,
with Robinhood beating them in the discount brokerage market and the soon to
be Schwab/TD on the premium side.

