The deal includes an online broker/dealer, a digital portfolio management platform, and educational content and social collaboration channels.
Fort Lauderdale, Florida-based TradeKing has about $4.5bn in client assets, nearly $1.1bn of cash and cash investments, and 260,000 funded accounts.
The company’s employs about people, who will join Ally after the completion of the transaction.
Subject to regulatory approval from the Financial Industry Regulatory Authority, the transaction is anticipated to be completed in the third quarter of this year.
The deal is part of Ally Financial’s plans to expand into new business lines including wealth management, mortgages and credit cards.
Ally Financial CEO Jeffrey Brown said: "The addition of wealth management is the next key step in Ally’s digital product evolution and will create a powerful combination of segment-leading direct banking and innovative investment services in a single integrated customer experience.
"This transaction positions Ally to further capitalize on emerging market trends, drive additional efficient deposit growth and diversify our revenue stream by adding fee-based income – all of which we believe will enhance shareholder value over time."
Goldman, Sachs & Co., Jarrett Lilien and Sullivan & Cromwell advised Ally Financial on the transaction. TradeKing secured advise from Bank of America Merrill Lynch and Cooley.
Image: Ally Financial CEO Jeffrey Brown. Photo: courtesy of Ally Financial Inc.
