Seeking Alpha

TD feels sting of online brokers' commission war

|About: The Toronto-Dominion Bank (TD)|By:, SA News Editor

Besides the outright online brokers, Toronto-Dominion Bank (TD -2.3%) also turned down after Charles Schwab eliminated commissions on some online trades.

That's because TD holds ~43%  stake in TD Ameritrade (AMTD -25.6%) as of June 30.

National Bank Financial analyst Gabriel Dechaine figures that "for every 10% reduction in AMTD's forecasts, TD's forecasts decline by 1%."

Increased competitive factors are likely to resurrect industry M&A talks and could lead to "renewed speculation of an AMTD-led (and TD-supported) acquisition" of ETFC to generate cost synergies, writes Dechaine.

via Bloomberg First Word.

Previously: Online brokers tumble after Schwab cuts commissions to zero (Oct. 1)

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