Interactive Investor, one of the largest online stock brokers and investment communities is to buy TD Direct Investing.
The deal is being funded by City heavy weight JC Flowers
Adam Seal, CEO of Interactive Investors said:
The combined business will build on Interactive Investor’s heritage as a low-cost broker and TDDI’s reputation as a leading online investment provider.
It will create the UK’s second largest online retail investment provider and we anticipate that both Interactive Investor and TDDI customers will enjoy the benefits of a business with significant scale, low charges, international reach and the financial strength to invest in leading technology, products and services.
Interactive Investor claims that once the TD Direct Investing acquisition is completed they will service 300,000 customers and have £18bn of assets on account.
Interactive Investor also provides smaller brokers with a white label of it’s investment platform for brands such as Trustnet, who operate Trustnet Direct which provides information and access on funds for SIPP accounts.
As brokers find it hard to complete with online platform discount pricing, we should expect to see more consolidation in the stock and bond broker industry. The most recent being Equiniti taking over Selftrade, who were once one of the largest execution only stock brokers in the UK.
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Richard founded the Good Money Guide (previously Good Broker Guide) in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.