CNBC citing sources close to the transaction, noting that a deal could be announced later today. The takeover speculation follows last month's move by Schwab to eliminate commissions for its retail clients, setting off a so-called "zero commissions" war in the online brokerage space that hammered the sector and caused major changes to earnings forecasts.
A combined Schwab and TD Ameritrade would have assets nearing $5 trillion, more than 23 million clients and nearly 30,000 employees.
Jeff Marks, senior portfolio analyst with Jim Cramer's Action Alerts PLUS portfolio, weighed in on the takeover speculation.
"So, of course, Schwab was the first one to come out and, and cut commission fees, which is great for the retail investor, by the way," said Marks.
Marks also notes that this may be where Schwab is "playing chess when everyone else is playing checkers."
Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM
Catch Up: Today's Top News Videos Below