It’s official, TradeKing and Zecco has decided to tie the knot. Pending regulatory approval which should go smoothly, the merger between the two brokers will be completed within the next 30 – 60 days.

Facts that we know thus far:

1. A new joint name has not yet been announced, if one will be used at all. “TK Zecco”, “TKZ Group”, or “ZeccoKing” are all interesting possibilities.

2. Combined the new brokerage will house some 500,000 clients and several Billion in assets, making it the sixth largest.

3. Pricing will remain the same ($4.95 + $.65 per contract).

4. Highlight addition for TradeKing clients will be gaining access to forex trading, and Zecco clients will gain access to TradeKing’s options tools, education, and fixed income investments. Some of these benefits could come into play for clients as early as Q3 2012.

5. There is no definite answers on what platforms, who’s research, who social network, etc will be used with the new joint site.

6. Penson will be used for trade clearing  in the combined firm.

7. For more M&A Questions and Answers see the Zeccc merger FAQs and the TradeKing merger FAQs.

We do not know who initiated the discussions to merge originally, nor which side will benefit the most from the deal. TradeKing has raised over $6 million total while Zecco has raised $35 million total. From what we know both brokers had over 200,000 clients as of earlier this year, so by the time this merger was announced, the sizes were most likely fairly close.

From the press release, “TradeKing and Zecco share a similar mission, applying pressure on the industry to give the individual investor a far better trading experience and a far greater value,” said Don Montanaro, CEO of TradeKing. “By merging, we have an opportunity to ratchet up our ability to influence the direction of the online brokerage industry. We believe this is great news for clients of both firms and investors as a whole.”

The merger announcement video of Don Monanaro, TradeKing’s CEO, and Mike Raneri, Zecco’s CEO, can be viewed on youtube. Furthermore, you can read Don’s blog post and Mike’s blog post on the matter. As soon as we know more we will be sure to update this page.

What do you think about the merger?