Morgan Stanley is buying online brokerage E-Trade for about $13 billion.
Discount brokers like E-Trade have engaged in a vicious fight for customers since late last year, when Charles Schwab Corp. announced that it would eliminate the fees it charges customers for trades.
Weeks later, Charles Schwab and TD Ameritrade Holding Corp. said they would merge, creating a colossus of a rival for E-Trade.
In the all-stock deal announced Thursday, E-Trade shareholders will receive 1.0432 Morgan Stanley shares for each share they own.
E-Trade Financial Corp. has over 5.2 million client accounts with over $360 billion of retail client assets, adding to Morgan Stanley’s existing 3 million client relationships and $2.7 trillion of client assets.
E-Trade’s U.S. stock plan business will be combined with Shareworks by Morgan Stanley, a provider of public stock plan administration and private cap table management solutions.
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