 Massive news came out this morning guys, Charles Schwab is reportedly acquiring TD Ameritrade for $26 billion. This is absolutely insane considering the madness that's been going on in the brokerage world from M1 Finance, Robinhood, especially Robinhood, all these traditional companies going from fees to no fees. This is insane because this is like a war against Robinhood in a sense. TD Ameritrade joining forces with Charles Schwab to take down this disruptor which is Robinhood. So we'll talk about that in a little bit here. We'll take a look at the two stocks being Charles Schwab and TD Ameritrade and we'll talk about one thing that could be kind of difficult with this merger as well as why I think it is good. So let's hop right into it right now. We can see in this article again Charles Schwab is acquiring TD Ameritrade $26 billion and you can see based on these percentage points here how much these two stocks in terms of TD and Schwab moved this morning. It was absolutely incredible. So might as well talk about the stocks movements right now. Then we'll go into the notes that I have in my phone. So we can see here AMTD, TD Ameritrade. This is the company that is reportedly being acquired. It's up 16% right now and it was up as high as 24% even higher 30% almost. I think it was 27% here at this peak at $53.64. You can see down here Charles Schwab ticker symbol SCHW is up 7.2% right now up $3.35 and it was up at one point around 11 to 12% which again is insane. So this news two of the biggest players merging is obviously causing a lot of upwards momentum in these two stocks as investors out there like this move. So in terms of trading these two I'll be watching them for sure over these next couple of weeks especially as it seems like they're dipping now so this could be an opportunity but the more important thing is the war on Robinhood right now guys. We saw Robinhood is actually expanding to the UK. They have this whole new cash management feature that they're doing that they're rolling out here. I believe that's what it's called. I'm not really interested in it myself because I already have other places where I put my cash but that's an interesting thing Robinhood is trying to do. And of course like we mentioned these big big brokerages traditional brokerages Fidelity Schwab TD they're all trying to compete so what I think this merger is it's really them joining forces to take down Robinhood like I mentioned at the beginning of the video. That's really what it is right so why this makes sense is really them two joining forces that's going to be a larger pool of people that they're going to be doing business with right. So at the end of the day from what they do make money from they'll be making more money since there's a larger pool of people since both of those businesses are combining right in terms of TD and Schwab and why this deal really really makes sense in my opinion is because TD Ameritrade when they cut their fees they lost a ton of their revenue because they were making a lot of their money from their fees right and on the flip side Charles Schwab when they cut their fees they didn't really lose much money because a lot of their business the revenue in terms of their business was not coming from their fees I forget exactly what the percent was it's in the single digits low single digits maybe like 2 to 4% or something like that but a very small amount of their money was coming from fees so take TD Ameritrade which is a company that took a huge blow because a lot of their revenue was coming with fees and combine it with the company like Schwab which didn't really take a blow I think it personally I personally think that makes sense right this is a merger that makes sense but what I was reading in terms of the price Charles Schwab did pay a bit of a premium for TD Ameritrade and there's another complication guys that I want to go into right now which is TD banks 43% stake in TD Ameritrade right so TD bank has a banking agreement with Ameritrade through 2021 that would likely have to be dissolved to make the economics attractive to Schwab without the TD bank agreement in place Schwab could earn substantially better economics on Ameritrade's customer cash balances so that's kind of a complication eventually Schwab wants to get TD bank out of the picture I don't know if they can buy them out in terms of that of course we'll see in the next couple of weeks as this merger really proceeds and we get more details about it but pretty much right now guys that's all I have to say in this video nice short and sweet to the point just to get the news out there to you guys let me know what you think about this down below in the comment section and again what do you think about Schwab Ameritrade in terms of their stocks are you buying are you selling are you simply watching or are you looking to swing trade them I'd love to know what you guys have to think if you guys enjoy the video feel free to hit that like consider subscribing if you do want to see further content for me join our StriveSmart Discord group chat as well as our StriveSmart Facebook group I'll catch you all in the next video thanks again for watching peace out