In a deal that would combine the online industry leaders in retail stock and stock-option trading, TD Ameritrade has announced its plans of taking over Thinkorswim Group for $606 in cash and shares. According to analysts, the proposed takeover at a considerably high price marks the increasing value of online brokerage world.

While TD Ameritrade is an industry leader in the day-to-day number of stock trades, Thinkorswim leads the industry of retail options trades. Ameritrade CEO Fred Tomczyk opines that with the deal coming through, Ameritrade is set to become the "best front-end trading platform in the country."

The acquisition values Thinkorswim at $8.71 per share - which is 54 per cent more than the Wednesday closing price $5.65 - thereby giving its shareholders $3.34 in cash and 0.398 of an Ameritrade share plus per Thinkorswim share. The deal, subject to shareholder and regulatory approval, will likely be finalized in six months.

Commenting on the deal, the senior vice-president of wealth management at Celent in Boston, Robert Ellis, said: "Options are currently the most profitable part of the online brokerage world, and dedicated firms like Thinkorswim have been doing well even through the markets' declines. Options clients trade more, therefore adding more revenue to the brokerage firm."

In the opinion of Ellis, Thinkorswim, which has nearly 94,000 clients and $2.9 billion in client assets, has clients trading 450 times a year, on an average, yielding 60% of the company's revenue.