In an effort to challenge larger rivals, TradeKing and Zecco have merged their online brokerage businesses.
The companies, based in Fort Lauderdale and San Francisco respectively, have been fighting an uphill battles against larger competitors, like E-Trade. They said in a press release Tuesday that the merger will create a firm, with the scale and resources to provide an alternative for independent investors. The price of the deal was not disclosed.
“TradeKing and Zecco share a similar mission, applying pressure on the industry to give the individual investor a far better trading experience and a far greater value,” said Don Montanaro, TradeKing’s chief executive officer. “By merging, we have an opportunity to ratchet up our ability to influence the direction of the online brokerage industry. We believe this is great news for clients of both firms and investors as a whole.”
The new merged firm would have a combined client base of approximately 500,000 accounts with several billion dollars in client assets under management.
“We believe the market is ready for a new player that doesn’t sound, act or think like all the other firms, but with the size and resources to go head-to-head with the major players,” said Michael Raneri, Zecco’s CEO. “We are now positioned to be the challenger brand we believe investors are seeking.”
After the merger, clients will be able to make trades for $4.95/trade, the price currently offered by both firms. In addition, TradeKing clients will gain access to Zecco’s capabilities, such as foreign exchange trading and highly-rated mobile trading apps for both iPhone and Android. Zecco clients will gain access to TradeKing’s options trading tools, comprehensive educational offerings and customer service.