UK banking group HSBC has sold off its Australian online stockbroking business to E*Trade for approximately US$38.5m.
HSBC Stockbroking is a non-advisory, online trading and settlement services business, covering equities, warrants and options. The unit also provides online managed funds and international share trading in 14 overseas markets.
HSBC says it conducted a strategic review of its Australian stockbroking business before maing the decision to sell. The bank says the online broking industry will continue to consolidate, while investment in technology is likely to increase significantly.
The unit has been bought by E*Trade Australia, which is the second largest online broker in the country.
Stuart Davis, CEO of HSBC Bank in Australia, says: "While we have steadily increased our customer base over time, E*Trade's interest in acquiring the business and entering into an ongoing strategic alliance presented us with an attractive offer.
"Their level of commitment ensures our 40,000 customers will continue to have access to a first class broking service."