The sale is likely to attract larger discount brokerages
such as E Trade Financial Corp (NASDAQ:ETFC), TD Ameritrade Holding Corp (NYSE:AMTD) and Scottrade Inc, two of the sources said.
Internet transactions, which by some estimates are expected to account for nearly $500 billion in annual trades within the next five years, is dominated by discount brokerages
such as Charles Schwab & Co.
The options can be broken down into three basic categories: full-service brokerage, discount brokerages
and other types of investment services or a financial institution.
In a field crowded by discount brokerages
like E*TRADE, Charles Schwab, and TDAmeritrade, the zero commission pricing and investor community on Zecco.
With more discount brokerages
cropping up, this is becoming a trend,'' said John Markese, president of the American Association of Individual Investors.
Scottrade is one of the leading deep discount brokerages
in the US, with over 120 offices nationwide, as well as Scottrade.
The company's customers include 40 percent of Gomez Advisors' Top 20 Online Brokerages and 40 percent of Time Magazine's Top 10 Discount Brokerages
, as well as a number of top tier investment banks and banks.
This investment community consists of approximately 1,000 financial companies such as mutual fund companies, banks, brokerage houses, insurance companies or any firm that is trading financial products through discount brokerages
As one of the top discount brokerages
, Quick & Reilly has realized this and has implemented a system that fills their needs today and will meet their growing demands in the future.
amp;uot;Our relationship with Microsoft,&uot; said Lake, &uot;is only the beginning of a series of strategic alliances that will enable us to accelerate our position as one of the major online discount brokerages
in the nation.
The majority of the firm's trading represents dealer-to-dealer transactions with major wire houses, discount brokerages
and Internet trading firms.
While full-service firms like Merrill Lynch and Morgan Stanley Dean Witter scrambled to develop an online presence, discount brokerages
that have offered online trading since the early nineties have established a niche.