E*Trade acquiring custodian Trust Company of America

Discount broker buying second-tier custodian for $275 million.
OCT 19, 2017

E*Trade said Thursday it is buying Trust Company of America for $275 million in cash. Josh Pace, president and chief executive of Trust Company of America, said in a letter to the firm's investment-adviser clients that the transaction will close by the end of the second quarter of 2018. "E*Trade brings a lot to the table," Mr. Pace wrote. "We believe the resources and depth of this industry-leading organziation will aid our continued growth, innovative technology, and the world-class service you and your clients have come to expect." Established in 1990, TCA is an independent custodian with $17 billion in assets that provides technology and custody services for about 180 registered investment advisers on its platform. It has carved out a niche among RIAs while competing against larger custodians, such as Schwab, Fidelity and TD Ameritrade. In his letter, Mr. Pace said that the he will continue to head TCA and that its "service model...[and] fee structure will not change." E*Trade will bolster TCA's technology offerings, he said. "This new chapter of our company will be filled with many opportunities to enhance our technology and grow our company, while maintaining our values and company culture," Mr. Pace wrote. The purchase of TCA will help E*Trade strengthen its position in the investment-advice sector, said E*Trade chief executive Karl Roessner. "Their superior technology solutions in the RIA space are a natural complement to the cutting edge digital experiences we offer to retail investors," Mr. Roessner said in an earnings statement on Thursday. "Beyond the ability to offer enhanced services to certain segments of our client base, we are confident that the extension of the E*TRADE brand will provide the TCA team with some additional firepower to accelerate growth."

Latest News

What advisors need to know about SECURE 2.0’s impact on retirement income planning
What advisors need to know about SECURE 2.0’s impact on retirement income planning

Catch-up contributions, required minimum distributions, and 529 plans are just some of the areas the Biden-ratified legislation touches.

EToro to tokenize US stocks on Ethereum network for 24/7 trading
EToro to tokenize US stocks on Ethereum network for 24/7 trading

Following a similar move by Robinhood, the online investing platform said it will also offer 24/5 trading initially with a menu of 100 US-listed stocks and ETFs.

GTCR to acquire FMG Suite, expanding its wealth tech portfolio
GTCR to acquire FMG Suite, expanding its wealth tech portfolio

The private equity giant will support the advisor tech marketing firm in boosting its AI capabilities and scaling its enterprise relationships.

$29B Lido Advisors expands in Utah with Olympus Wealth Management
$29B Lido Advisors expands in Utah with Olympus Wealth Management

The privately backed RIA's newest partner firm brings $850 million in assets while giving it a new foothold in the Salt Lake City region.

Annuities hit new $223B high in H1 2025, LIMRA says
Annuities hit new $223B high in H1 2025, LIMRA says

The latest preliminary data show $117 billion in second-quarter sales, but hints of a slowdown are emerging.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.