US online stockbrokerage E-Trade has pulled the plug on its SA operation, and its activities will cease as from next Friday.
E-Trade has offered to switch clients to competitor PSG Online from Monday, 22 October.
Explaining the move in an e-mail to clients, local CE David Rothschild said the E-Trade group decided to close the SA office "in order to consolidate its operations and resources into certain strategic territories".
"Should you have accounts with E-Trade in the US, these will not be affected by this decision," he added.
Rothschild said PSG has offered to retain the same commission structure for clients who move over from E-Trade.
PSG is expected to contact E-Trade clients this week to provide them with access details.
Clients who wish to transfer their assets and cash to a different broker before Thursday should contact E-Trade. From 22 October, they will have to instruct PSG Online to transfer their assets if they wish to do so.
E-Trade SA had recently cut back entirely on a high-profile advertising campaign which it ran after its launch in SA last year.
Ironically, the move by E-Trade follows the release of positive earnings figures for the third quarter by the E-Trade group, whose shares trade on Nasdaq.
The closure of the South African operation comes only a year after its launch.
The US operator was originally going to enter the country in partnership with E-Data, but after the deal broke down it set up its own operations, planning to expand into other markets in the subcontinent.
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