NEW YORK — Online brokers E*Trade Financial Corp. and TD Ameritrade Holding Corp. are discussing a possible merger.

The Wall Street Journal reported today that a merger of the two online brokers would create a dominant player in what has been a highly fragmented industry, with dozens of smaller companies battling for market share. As of the end of June, E*Trade had 4.7 million brokerage and banking accounts, TD Ameritrade had 6.3 million such accounts, and Charles Schwab Corp., now the largest online broker, had about 6.9 million. Merrill Lynch & Co., in contrast, has more than 7 million customer accounts, the publication reported.

An E*Trade spokeswoman told the Wall Street Journal that the online broker believes there is “tremendous value in consolidation that aligns business strategy and operational synergies and will do what is in the best interest of its customers.” A TD Ameritrade spokeswoman confirmed, “We have talked and continue to talk to peers in the industry.”

This is not the first time the online brokerage giants have discussed a merger, but the latest discussions have been occurring over the past few weeks, according to the article.