---
title: Online Brokerage TD Ameritrade Is Acquiring Scottrade
description: TD Ameritrade and TD Bank (which owns a significant portion of TD Ameritrade) will acquire Scottrade Financial in a $4 billion deal.
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published: '2016-10-24T13:08:24.000Z'
modified: '2024-04-17T04:18:03.000Z'
section: Investing
tags:
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word_count: 195
canonical: https://money.com/td-ameritrade-scottrade-merger/
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![The TD Ameritrade Holding Corp. Headquarters As $4 Billion Scottrade Financial Services Inc. Deal Nears Closing](https://img.money.com/2016/10/gettyimages-617638522.jpg)
*TD Ameritrade will acquire Scottrade for $4 billion.*

TD Ameritrade and TD Bank (which owns a significant portion of TD Ameritrade) will acquire Scottrade Financial in a $4 billion deal, TD announced in a [press release](http://www.amtd.com/newsroom/press-releases/news-event-details/). The deal will reportedly happen in two parts, and will close by Sept. 30, 2017, according to [Reuters](http://www.cnbc.com/2016/10/24/td-ameritrade-td-bank-to-buy-scottrade-for-4-billion.html).

Well before online brokers like Wealthfront and Betterment, the low-cost brokerages democratized stock trading for everyday investors by providing low trading fees and making it easier for anyone to place a trade from their home computer. TD Bank will first purchase Scottrade Bank for $1.3 billion, and TD Ameritrade will concurrently purchase Scottrade Financial Services (the brokerage arm) for a reported $2.7 billion.

***Read More: What $1,000 Invested in Disney, Netflix and More 10 Years Ago is Worth Today***

The merger comes at a time when everyday investors are shifting away from active trading and into more passive investment vehicles. As [Money previously reported](https://money.com/hedge-fund-salaries-lower/), passive mutual funds and ETFs have gained more than $1 trillion over the past three years as investors move out of more actively-traded investments.

The companies had 600,000 average client trades a day and $944 billion in client assets in the year ending Sept. 30, 2016.

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