TD Ameritrade, E*Trade in merger talks - report

LONDON (CNNMoney.com) -- Online brokers TD Ameritrade Holding Corp. and E*Trade Financial Corp. are in merger talks, according to a report published Wednesday.

The Wall Street Journal said the two companies have been in discussions for weeks but aren't near a deal, citing people familiar with the talks.

Two hedge funds with large stakes in TD Ameritrade (Charts) have publicly urged the two online brokers to talk, the report said.

A merger between TD Ameritrade and E*Trade (Charts) could reduce some of the intense competition in the online brokerage industry, where several small players have been fighting for market share, according to the newspaper.