E-Trade is interested in buying Ameritrade Brokerage

This is not good. According to various sources, including this article at ABC News and one in the SF Chronicle, E-Trade is looking to buy Ameritrade. Boo. I especially like the quote “Every one of these brokers has customers because of a negative experience with another broker”. So true.

I have had bad experiences with E*Trade Brokerage (here, here, and here), and I have always liked Ameritrade’s “simple, but just works” model, along with their superior customer service over E-Trade. E-Trade seems to have a major focus on very active traders as well (although Ameritrade also has their Apex program). But Ameritrade has lower minimums, slighly less services, and less overall fees than E-Trade.

I personally use Ameritrade I-Zone now, with $5 trades and online-only access. I’m happy with it, and would really hate to see it go. Something to keep an eye on.

Comments

  1. I agree with you! Now Etrade can take a perfectly good company and ruin it — like they’ve done with their own business. I’ll need to look for another alternative.

    FMF

  2. Anonymous says:

    Also, Scottrade is really terrific! an online brokerage firm only. $7 trades, have had no trouble ever and they have hundreds of local offices in major cities across the country and the employees are very friendly and accomodating.

    A fan of your site!

  3. Thanks for the info on Scottrade. I’m interested in any other brokers too. I used Sharebuilder for a little bit and I liked it, but the monthly fees were rather hefty I thought.

  4. Aditya Mishra says:

    I have tried Ameritrade and I-zone both.
    I had close my account with Izone because it has no customer service. I wanted them to transfer out rather substantial amount to my bank and they just refused to transfer funds. It may be cheaper for trade but is equally bad if you want to withdraw cash.
    With regular Ameritrade at least I could talk to some one on telephone and find out the problem.

    I was thinking of closing this account anyway now and transfer all assets to my Scottrade account.
    Scottrade also have a local office where you can get any problem resolved face to face.

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