Charles Schwab will acquire the rival brokerage TD Ameritrade in a deal that could be announced as soon as Thursday morning, Fox Business reported.A purchase would ring in at roughly $26 billion and allow Schwab to better compete with Fidelity, Interactive Brokers, and E-Trade, the report said.TD Ameritrade surged as much as 27% early Thursday. Schwab jumped as much as 12%.From late September to early October, all major brokerages slashed trading fees, sending their stocks lower as investors feared the decision would wipe out a critical revenue stream.Watch Charles Schwab trade live here.Watch TD Ameritrade trade live here.Charles Schwab will buy the rival brokerage TD Ameritrade in a deal that could be announced as soon as Thursday morning, Fox Business reported.An acquisition would ring in at roughly $26 billion and allow Schwab to better compete in the dynamic brokerage industry, the report said. From late September to early October, all major brokerage firms cut fees for US-listed trades, eliminating a key revenue stream in a bid to attract new customers.TD Ameritrade stock spiked as much as 27% in early trading on Thursday. Schwab shares surged as much as 12%.The combined company will be helmed by Schwab CEO Walter Bettinger, according to Fox Business. Tim Hockey, TD Ameritrade's CEO and president, announced in July that he would leave the firm by February, and Chief Financial Officer Steve Boyle will run the brokerage until the acquisition is complete.Schwab announced on October 1 that it would cut stock and exchange-traded-fund fees to zero, one day before TD Ameritrade also wiped out its trading fees. The competing firms Fidelity and E-Trade nixed their fees in the following days. Interactive Brokers was the first major firm to cut commissions, making its announcement on September 26.Read more: A fund manager who's outshining 95% of his peers unpacks the secret weapons behind his top 2 tech stocksand explains why he almost never invests in hot IPOsSchwab's and TD Ameritrade's shares tumbled following their announcements but have since recovered.Schwab's namesake founder said that the decision would open up the company's services to customers who have faced obstacles when looking to invest with the firm."From day one, my passion has been to make investing easier and more affordable for everyone," Charles Schwab said in a press release announcing the elimination of trading fees. He added that "eliminating commissions ensures my ultimate vision is realizedmaking investing accessible to all."Schwab closed Wednesday at $44.75 per share, up roughly 7.8%. TD Ameritrade closed at $41.38 per share, down about 15.5% year-t0-date.Schwab has 10 "buy" ratings, nine "hold" ratings, and two "sell" ratings from analysts, with a consensus price target of $43.38, according to Bloomberg data.TD Ameritrade has seven "buy" ratings, eight "hold" ratings, and four "sell" ratings, with a consensus price target of $40.22.Now read more markets coverage from Markets Insider and Business Insider:Chinese investors are sinking cash into Hong Kong's stock market as protests escalateBillionaire activist Carl Icahn is reportedly betting on the death of the malland could make $400 million if things go his wayJuul just laid off 650 workers after federal investigations rocked the company. Workers who were affected describe how it was handled and what they saw leading up to it.Join the conversation about this storyNOW WATCH: A big-money investor in juggernauts like Facebook and Netflix breaks down the '3rd wave' firms that are leading the next round of tech disruption
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