The Charles Schwab Corporation (NYSE:SCHW) is in talks to buy TD Ameritrade Holding Corporation (NasdaqGS:AMTD), a source told CNBC's Becky Quick on November 21, 2019. A deal between Schwab and TD Ameritrade would create a behemoth with more than $5 trillion in combined assets, about $3.8 trillion from Schwab and $1.3 trillion from TD Ameritrade. Shares of TD Ameritrade soared 16.9% on November 21, 2019, its best day since September 2008.

Schwab will pay $25 billion for TD Ameritrade, the Financial Times reported on November 21, 2019. A deal between Schwab and TD Ameritrade would consolidate an industry going through massive disruption. In recent months, all of the major brokerages have announced plans to go to zero commissions.

Schwab was the first of the major players to make the move, eliminating commissions in early October. Schwab's competitors, including Fidelity and TD Ameritrade, were quick to follow. Schwab Chief Executive Officer Walter Bettinger has been designated to run the combined company, sources said.

TD Ameritrade Chief Executive Officer and President Tim Hockey said in July he is leaving the brokerage in February of 2020. Schwab's founder and Chairman Charles Schwab told CNBC's Bob Pisani last month that consolidation in the retail brokerage industry is a “logical conclusion that will occur.” “Certainty at the right valuation, we would do it, but we are really strong and very independent the way we do things, and so if its happens that it's appropriate for our shareholders we will do it,” Schwab said in response to a question about whether Schwab is a possible buyer of another brokerage. Calls to Schwab and TD Ameritrade weren't immediately returned.

Not charging for trades is a boon for consumers, but it has left the brokerages scrambling to find ways to maintain profits.