Reports: Charles Schwab Looking To Acquire TD Ameritrade For $26B

Charles Schwab (NYSE: SCHW) is looking to acquire TD Ameritrade (NASDAQ: AMTD) for $26 billion, Fox Business first reported. The deal could be announced as soon as today.

In October, Charles Schwab announced it would be slashing its trading commission costs from $4.95 to zero. Brokerages like Fidelity and TD Ameritrade soon followed and also cut fees.

"Not charging for trades is a boon for consumers, but it’s left the brokerages scrambling to find ways to maintain profits," CNBC's Becky Quick reported Thursday morning. "A deal between Schwab and TD Ameritrade would create a behemoth with $5 trillion in combined assets."

See Also: How And Why Are Online Brokers Offering Commission-Free Trades?

Schwab’s founder Charles Schwab told CNBC in October consolidation in the retail brokerage industry is a “logical conclusion that will occur.”

TD Ameritrade's stock traded higher by 25% at $51.85 in Thursday’s pre-market session. The company has a market cap of $22.4 billion.

Charles Schwab shares traded up 12% at $50.09 in Thursday’s pre-market session. The company has a market cap of $57.4 billion.

E*TRADE Financial Corp (NASDAQ:FTFC) fell about 5% at time of publication.