MB Trading announced that it is buying investment education provider WizeTrade Group. The deal is the third such announcement this year as the brokerage industry consolidates with the investment education industry. OptionsXpress (OXPS) announced the close of its deal with Optionetics on May 4th and TD Ameritrade (AMTD) closed its acquisition of thinkorswim in June.
Online brokers have actively pursued investment education providers because they offer a large, active account base and a new account acquisition system. Buyers of investment education products are valuable to brokers because they tend to trade more frequently and they trade a more diverse group of products such as options and foreign currencies.
WizeTrade was one of the last remaining large, independent players in the investment education space. The group was founded in 1999 and has reportedly sold more than 130,000 software training packages. MB Trading Group was also founded in 1999. They are a direct access brokerage firm that caters to active options traders and is consistently ranked as one of the best online brokers by Barron’s.
MB Trading launched MBT University in January with plans to offer 15 courses a week online. The MB Trading platform has been integrated with the WizeTrade system since 2006. “MB Trading has been an integrated broker partner with Wizetrade software products for the past three years, and this transaction is sure to further enhance the integrated technology for our customers,” said Wizetrade President John Dankovchik in a statement.