Discount broker Scottrade Financial Services Inc is working with an adviser to explore a sale that could value the firm at about $4 billion, Bloomberg reported, citing people familiar with the matter.
Scottrade has drawn interest from rivals, including TD Ameritrade Holding Corp (AMTD.O), the biggest discount brokerage by trade executions, Bloomberg reported, citing people familiar with the matter. (bloom.bg/2d81RDt)
However, there has been no final decision made with regards to the sale of the Missouri-based company, Bloomberg reported.
Representatives at Scottrade were not immediately available for comment and TD Ameritrade declined to comment.
In March, credit rating agency Fitch said Scottrade was trying to move away from its focus on transactional trading revenues and evolve toward more fee-based investment management revenue.
Fee-based accounts yield more reliable income than commission-based trading accounts that rise and fall with clients' interest in the markets.
Wealth managers in the United States are cutting fees, relying more on technology to give advice and reducing the minimum amounts clients can hold in their brokerage accounts, all in preparation for a new rule governing how they advise retirement savers.
(Reporting by Gaurika Juneja in Bengaluru; Editing by Leslie Adler and Bill Rigby)