> the traditionals haven't been able to survive the second wave of disruption
Pretty much all major American brokerages now offer zero-commission equities trading. It’s been a long time since retail equities traders depended on commissions to butter its bread.
This merger was driven, in part, by the greater fraction of revenues commissions represented ex ante for Ameritrade versus Schwab.
Most brokerages make the lion's share of their profits on carried interest in cash accounts, not trading. Robinhood isn't forcing this merger at all. TDA was ripe for the taking considering its nice overlap with Schwab demos (tons of small retail and some active traders with ThinkOrSwim). TDA fits better with Schwab than Fidelity, Vanguard, etc.
I'm honestly surprised that MS or BofA didn't make a play here. The influx just might save those two dying market players.
Pretty much all major American brokerages now offer zero-commission equities trading. It’s been a long time since retail equities traders depended on commissions to butter its bread.
This merger was driven, in part, by the greater fraction of revenues commissions represented ex ante for Ameritrade versus Schwab.