BrokerageAmerica Acquires One Financial Network - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

BrokerageAmerica Acquires One Financial Network

With the deal, the online discount broker will gain 10,000 individual investors as well as new services.

Just six months after its launch, online discount broker BrokerageAmerica Inc. is buying its way into bigger and better services for its customers.

The firm, which offers institutional and personal investors commission-free trading and trade rebates by connecting them with brokers and dealers who are also market makers, has bought online brokerage firm and investment products and services provider One Financial Network Inc. and its subsidiary, One Financial Network LLC. Most notable of the brand names under the One Financial Network umbrella is The Financial Caf?, which provides low-cost trading and comprehensive investment-related resources for individual investors. Details of the acquisition weren't disclosed.

While the deal gives the firm 10,000 more individual investors, the integration of services from divisions like The Financial Caf? will address a key shortcoming of BrokerageAmerica--the lack of value-added investing information and resources in its "no frills" investing service. Meanwhile, the expansion could make BrokerageAmerica more appealing to institutional traders.

The transition of operations should be seamless, executives say, because the two companies have used the same technology vendors. Drew Sycoff, CEO of BrokerageAmerica, and Don Camillo, president and chief operating officer, will head the management of the new firm.

The acquisition indicates that BrokerageAmerica has a surprisingly sustainable business model that has been able to survive the drop-off in self-directed investors in favor of assisted financial planning in the wake of the economic downturn, says Alyssa Sibley, a senior analyst with Gomez Advisors. But while the new features and functionalities that the firm will gain through the acquisition are important, the quality of the services that BrokerageAmerica is gaining might not be top-notch. "On a scorecard, Financial Caf? has always done well because they're cheap," Sibley says. "But in terms of their on-site resources and ease of use, they don't score high."

Sibley adds that Financial Caf? was struggling, and because the online brokerage market today is one of consolidation, BrokerageAmerica may have gotten a good price on the deal, making it a worthwhile investment.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
Data Science: How the Pandemic Has Affected 10 Popular Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  9/9/2020
Commentary
The Growing Security Priority for DevOps and Cloud Migration
Joao-Pierre S. Ruth, Senior Writer,  9/3/2020
Commentary
Dark Side of AI: How to Make Artificial Intelligence Trustworthy
Guest Commentary, Guest Commentary,  9/15/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Automation Transforms Network Management
In this special report we will examine the layers of automation and orchestration in IT operations, and how they can provide high availability and greater scale for modern applications and business demands.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll