TD spent 25 years building its U.S brokerage unit through a series of acquisitions.Mark Lennihan/The Associated Press
Toronto-Dominion Bank has signalled that it won’t invest more in the U.S. online brokerage business by selling its stake in TD Ameritrade Holding Corp. to rival Charles Schwab Corp. as part of a US$26-billion takeover.
If the proposed deal is successful, TD would hold a 13.4-per-cent stake in Schwab, which it would be eligible to sell as early as 2021. The deal is expected to take about a year to complete and is subject to approval by U.S. antitrust authorities.
TD, Canada’s second-largest lender and a significant player in U.S. retail banking, agreed to swap its 43-per-cent stake in Omaha-based TD Ameritrade to make possible an all-stock deal that creates a dominant U.S. brokerage, with US$5-trillion in client assets and 24 million client accounts.
Some analysts expect TD to sell all or part of its stake in Schwab, which is currently worth about US$13-billion, in order to raise capital for acquisitions. The Canadian bank snapped up a series of retail banks in the northeastern and southern U.S. ahead of the global financial crisis, but has not made a major U.S. bank acquisition since 2010.
Analysts peppered chief executive Bharat Masrani on Monday with questions over the bank’s decision to combine forces with a larger rival, rather than continue to expand on its own.
“We believe TD will benefit from having an ownership stake in a more diversified firm with a stronger growth profile,” Mr. Masrani said in a conference call. “If you look at our history in this space, we’ve done very well. We’ve done things that sometimes are unusual in nature, but have turned out to be terrific for the bank.”
Analyst Robert Sedran at CIBC Capital Markets said no Canadian banks seem to have a long-term plan to own a “passive minority stake” in another financial institution. “We assume at some point this value will be redeployed, perhaps into the lower-multiple personal and commercial banking business,” he said in a report Monday.
In what analyst John Aiken at Barclays described as an “elegant solution” to a potential loss of revenue from its U.S. business, TD renegotiated and extended the terms of the sweep deposit agreement that allows the Canadian bank to manage cash in TD Ameritrade client accounts. “As we believe that TD feels it has greater strategic priorities for its capital, we agree with the strategic rationale for a reduced ownership stake,” Mr. Aiken said.
The current deal on deposits, which expires in 2023, provided about $275-million in annual revenue to TD. A new 10-year contract with Schwab starts in July, 2021, and will be less lucrative, but features a longer term. The servicing fee TD earns will be reduced to 15 from 25 basis points (100 basis points equal one percentage point). And Schwab can reduce the insured deposit balance, which stands at US$103-billion, by up to US$10-billion each year until it reaches a US$50-billion floor.
By combining the two market leaders into a single giant, Schwab expects to reap as much as US$4-billion in financial benefits, mostly from cost cutting. The combined companies currently have 28,000 employees and, going forward, many will be based at a campus Schwab established in the suburbs of Dallas. The process of merging the two companies could take as long as three years, and carries integration costs of US$1.6-billion. TD estimates that putting the two U.S. companies together will create $4-billion to $6-billion of value for the Canadian bank, which will have two directors on Schwab’s board.
TD Ameritrade had been searching for a new CEO after announcing in the summer that current chief executive Tim Hockey would leave the company early next year. That search has now been called off, and TD Ameritrades chief financial officer, Stephen Boyle, has taken over as interim CEO. Mr. Hockey has moved to an advisory role until February.
On Monday, Mr. Boyle said the company “looked at all alternatives,” including making an acquisition of its own, before deciding to sell to Schwab. The discount-brokerage market has been upended by a fierce price war set off by Schwab in early October. San Francisco-based Schwab, a full-service financial firm and America’s largest online broker with US$3.8-trillion of assets under management, slashed its fees to zero for online trading of U.S. stocks, exchange-traded funds and options.
That forced competitors such as Ameritrade, which has US$1.3-trillion in client assets, and others to match the aggressive pricing. The moves sent U.S. brokerage stocks tumbling, and the effect was especially acute for TD Ameritrade, whose revenue could slip 15 per cent to 16 per cent from lost trading commissions.
In Canada, TD was expected to suffer proportionately as a major TD Ameritrade shareholder. The renewed competition set off a flurry of speculation about potential deals in the sector, including the prospect that TD Ameritrade could try to buy smaller rival ETrade Financial Corp., which had long been a rumoured takeover target.
Reports that Ameritrade would instead sell to Schwab, with TD’s blessing, first surfaced last Thursday, pushing shares in the two companies higher. TD Ameritrade’s stock price rose 7.6 per cent on the Nasdaq stock exchange on Monday, while shares in Charles Schwab were up 2.3 per cent on the New York Stock Exchange. TD’s shares increased 0.6 per cent in Toronto.
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Have you ever wondered who actually owns the brokerage where you trade stocks? If you’re a TD Ameritrade customer (or were one), you might be confused about who’s pulling the strings behind your investment platform. With all the mergers and acquisitions in the financial world, it’s easy to get mixed up about who owns what So let’s clear up a common question once and for all Is TD Ameritrade owned by Wells Fargo?
The Short Answer: No, TD Ameritrade is Not Owned by Wells Fargo
I’ve researched this thoroughly, and I can confidently say that TD Ameritrade is NOT owned by Wells Fargo In fact, TD Ameritrade doesn’t even exist as an independent company anymore! Let me explain what actually happened to this popular trading platform
Who Really Owned TD Ameritrade?
TD Ameritrade has an interesting ownership history that spans decades. Let’s break it down:
- Founded in 1975 as First Omaha Securities by Joe Ricketts
- Became a publicly traded company in 1997
- In 2006, acquired TD Waterhouse from Toronto-Dominion Bank (TD Bank Group)
- After this acquisition, the company was renamed TD Ameritrade, and TD Bank Group owned about 39% stake
- In October 2020, Charles Schwab Corporation acquired TD Ameritrade in a deal valued at approximately $26 billion
- As of May 2024, the TD Ameritrade platform was completely shut down after all accounts were transitioned to Charles Schwab
So at no point in its history was Wells Fargo involved in the ownership of TD Ameritrade!
The Charles Schwab Acquisition: What Happened?
In late 2020, Charles Schwab completed its acquisition of TD Ameritrade. This was a major move in the brokerage industry, bringing together two of the largest online brokers in the United States.
The integration process has been gradual but steady:
- Charles Schwab initially kept TD Ameritrade operating as a separate platform
- Over time, they began migrating TD Ameritrade accounts to Schwab
- By May 2024, the TD Ameritrade platforms were completely shut down
- All former TD Ameritrade clients are now Schwab clients
If you’re a former TD Ameritrade client who’s been transitioned to Schwab, you probably received numerous communications about this change. The Schwab website actually has a dedicated welcome page for former TD Ameritrade customers at schwab.com/welcome-to-schwab.
What About TD Bank? Aren’t They the Same?
This is where a lot of confusion comes from! The “TD” in TD Ameritrade actually came from TD Waterhouse, which was owned by Toronto-Dominion Bank (TD Bank Group). But it’s important to understand that:
- TD Bank Group is a Canadian banking organization
- It’s completely separate from Wells Fargo, which is a U.S. bank
- TD Bank Group had a 39% stake in TD Ameritrade after the 2006 merger
- When Charles Schwab acquired TD Ameritrade in 2020, it also made arrangements regarding TD Bank Group’s ownership stake
TD Bank and Wells Fargo are totally different financial institutions with different ownership structures and histories.
What Can Former TD Ameritrade Clients Expect Now?
If you were a TD Ameritrade customer, here’s what the transition to Schwab means for you:
Platform Access
You now have access to:
- The thinkorswim trading platforms (desktop, web, and mobile)
- Schwab.com website
- Schwab Mobile app
Historical Information
You can still view:
- Up to 10 years of historical tax documents and statements
- Up to 4 years of transaction history
- Realized gain/loss data for at least 2 years after moving to Schwab
Creating Your Schwab Login
If you were a TD Ameritrade client:
- You’ll need to set up a Schwab Login ID and password at schwab.com/login
- If you’re already a Schwab client, you can just use your existing Schwab login
What About Scottrade Clients?
If you were originally a Scottrade customer before TD Ameritrade acquired them in 2017, you’re now a Schwab customer too. The financial services industry really is like a big game of musical chairs!
Why Do People Confuse TD Ameritrade with Wells Fargo?
There are a few reasons why some people might think Wells Fargo owns TD Ameritrade:
- Similar Business Lines: Both offer financial services, including banking and investments
- Name Confusion: The “TD” might be confused with other financial abbreviations
- Industry Consolidation: The financial services industry has seen many mergers and acquisitions, making it hard to keep track of who owns what
- Multiple Relationships: Some customers might have accounts at both institutions and get them confused
The Bigger Picture: Consolidation in the Brokerage Industry
The acquisition of TD Ameritrade by Charles Schwab is part of a broader trend of consolidation in the brokerage industry. Other notable mergers and acquisitions include:
- E*TRADE was acquired by Morgan Stanley
- Merrill Lynch was acquired by Bank of America
- TD Ameritrade itself acquired Scottrade in 2017
These mergers are often driven by:
- The need for scale in a low-commission environment
- Technology costs that can be spread across a larger customer base
- Competition from newer fintech startups
What Sets Schwab Apart Now That It Owns TD Ameritrade?
According to Schwab’s own messaging to former TD Ameritrade clients, they emphasize:
- World-class trading and investing: Access to intuitive platforms including thinkorswim and Schwab’s own tools
- Transparent pricing: Clear explanation of fees with a commitment to transparent pricing
- Exceptional service: Combined teams providing better support with access to over 400 physical branches
- Wide product range: Greater range of investment choices and wealth management solutions
A Brief Look at TD Ameritrade’s Legal History
Throughout its history, TD Ameritrade faced some legal challenges worth noting:
- In 2007, they experienced a security breach where hackers gained access to client information
- In 2009, they settled a lawsuit related to auction rate securities marketing
- They faced issues related to the Reserve Primary Fund during the 2008 financial crisis
- In 2022, the Reserve Bank of India listed TD Ameritrade as an illegal forex trading platform in India
None of these legal issues involved Wells Fargo, further confirming the separate nature of these companies.
Sponsorships and Brand Presence
TD Ameritrade had maintained some visible sponsorships, most notably:
- They owned the naming rights to TD Ameritrade Park Omaha, a baseball field
- After the acquisition by Charles Schwab, the venue was renamed Charles Schwab Field Omaha
To sum up the whole thing, TD Ameritrade was never owned by Wells Fargo at any point in its history. It was founded independently, later had TD Bank Group as a major stakeholder, and is now fully owned by Charles Schwab Corporation. As of May 2024, the TD Ameritrade platform no longer exists, with all accounts having been moved to Schwab’s systems.
If you’re a former TD Ameritrade customer who’s confused about the transition or still has questions, your best bet is to contact Schwab directly at 800-435-4000, or if you’re outside the U.S., at +1-415-667-8400.
The financial world keeps changing, but at least now you know for sure who DOESN’T own TD Ameritrade (Wells Fargo) and who DOES own it now (Charles Schwab)!
FAQs About TD Ameritrade Ownership
Q: When did Charles Schwab buy TD Ameritrade?
A: Charles Schwab completed its acquisition of TD Ameritrade in October 2020.
Q: Can I still use my TD Ameritrade account?
A: No, as of May 2024, all TD Ameritrade accounts have been transitioned to Schwab and the TD Ameritrade platforms have been shut down.
Q: What happened to the thinkorswim platform?
A: Good news! The thinkorswim platform suite is still available to use through Schwab.
Q: Did Wells Fargo ever own part of TD Ameritrade?
A: No, Wells Fargo never owned any part of TD Ameritrade.
Q: Who founded TD Ameritrade?
A: TD Ameritrade was founded as First Omaha Securities by Joe Ricketts in 1975.
So there you have it! The complete story of TD Ameritrade’s ownership—from its founding to its acquisition by Charles Schwab—with no Wells Fargo involvement whatsoever. The financial world can be complicated, but some facts are pretty straightforward when you dig into the history!
Latest in TD sells stake in TD Ameritrade to rival Charles Schwab
TD spent 25 years building its U.S brokerage unit through a series of acquisitions.Mark Lennihan/The Associated Press
Toronto-Dominion Bank has signalled that it won’t invest more in the U.S. online brokerage business by selling its stake in TD Ameritrade Holding Corp. to rival Charles Schwab Corp. as part of a US$26-billion takeover.
If the proposed deal is successful, TD would hold a 13.4-per-cent stake in Schwab, which it would be eligible to sell as early as 2021. The deal is expected to take about a year to complete and is subject to approval by U.S. antitrust authorities.
TD, Canada’s second-largest lender and a significant player in U.S. retail banking, agreed to swap its 43-per-cent stake in Omaha-based TD Ameritrade to make possible an all-stock deal that creates a dominant U.S. brokerage, with US$5-trillion in client assets and 24 million client accounts.
Some analysts expect TD to sell all or part of its stake in Schwab, which is currently worth about US$13-billion, in order to raise capital for acquisitions. The Canadian bank snapped up a series of retail banks in the northeastern and southern U.S. ahead of the global financial crisis, but has not made a major U.S. bank acquisition since 2010.
Analysts peppered chief executive Bharat Masrani on Monday with questions over the bank’s decision to combine forces with a larger rival, rather than continue to expand on its own.
“We believe TD will benefit from having an ownership stake in a more diversified firm with a stronger growth profile,” Mr. Masrani said in a conference call. “If you look at our history in this space, we’ve done very well. We’ve done things that sometimes are unusual in nature, but have turned out to be terrific for the bank.”
By client assets, trillions $US
Schwab + TD Ameritrade
Q3 2019 daily avg. trades (thousands)
JOHN SOPINSKI/THE GLOBE AND MAIL
SOURCE: charles schwab corp.
By client assets, trillions $US
Schwab + TD Ameritrade
Q3 2019 daily avg. trades (thousands)
JOHN SOPINSKI/THE GLOBE AND MAIL
SOURCE: charles schwab corp.
Schwab + TD Ameritrade
By client assets, trillions $US
Q3 2019 daily avg. trades (thousands)
JOHN SOPINSKI/THE GLOBE AND MAIL, SOURCE: charles schwab corp.
Analyst Robert Sedran at CIBC Capital Markets said no Canadian banks seem to have a long-term plan to own a “passive minority stake” in another financial institution. “We assume at some point this value will be redeployed, perhaps into the lower-multiple personal and commercial banking business,” he said in a report Monday.
In what analyst John Aiken at Barclays described as an “elegant solution” to a potential loss of revenue from its U.S. business, TD renegotiated and extended the terms of the sweep deposit agreement that allows the Canadian bank to manage cash in TD Ameritrade client accounts. “As we believe that TD feels it has greater strategic priorities for its capital, we agree with the strategic rationale for a reduced ownership stake,” Mr. Aiken said.
The current deal on deposits, which expires in 2023, provided about $275-million in annual revenue to TD. A new 10-year contract with Schwab starts in July, 2021, and will be less lucrative, but features a longer term. The servicing fee TD earns will be reduced to 15 from 25 basis points (100 basis points equal one percentage point). And Schwab can reduce the insured deposit balance, which stands at US$103-billion, by up to US$10-billion each year until it reaches a US$50-billion floor.
By combining the two market leaders into a single giant, Schwab expects to reap as much as US$4-billion in financial benefits, mostly from cost cutting. The combined companies currently have 28,000 employees and, going forward, many will be based at a campus Schwab established in the suburbs of Dallas. The process of merging the two companies could take as long as three years, and carries integration costs of US$1.6-billion. TD estimates that putting the two U.S. companies together will create $4-billion to $6-billion of value for the Canadian bank, which will have two directors on Schwab’s board.
TD Ameritrade had been searching for a new CEO after announcing in the summer that current chief executive Tim Hockey would leave the company early next year. That search has now been called off, and TD Ameritrades chief financial officer, Stephen Boyle, has taken over as interim CEO. Mr. Hockey has moved to an advisory role until February.
On Monday, Mr. Boyle said the company “looked at all alternatives,” including making an acquisition of its own, before deciding to sell to Schwab. The discount-brokerage market has been upended by a fierce price war set off by Schwab in early October. San Francisco-based Schwab, a full-service financial firm and America’s largest online broker with US$3.8-trillion of assets under management, slashed its fees to zero for online trading of U.S. stocks, exchange-traded funds and options.
That forced competitors such as Ameritrade, which has US$1.3-trillion in client assets, and others to match the aggressive pricing. The moves sent U.S. brokerage stocks tumbling, and the effect was especially acute for TD Ameritrade, whose revenue could slip 15 per cent to 16 per cent from lost trading commissions.
In Canada, TD was expected to suffer proportionately as a major TD Ameritrade shareholder. The renewed competition set off a flurry of speculation about potential deals in the sector, including the prospect that TD Ameritrade could try to buy smaller rival ETrade Financial Corp., which had long been a rumoured takeover target.
Reports that Ameritrade would instead sell to Schwab, with TD’s blessing, first surfaced last Thursday, pushing shares in the two companies higher. TD Ameritrade’s stock price rose 7.6 per cent on the Nasdaq stock exchange on Monday, while shares in Charles Schwab were up 2.3 per cent on the New York Stock Exchange. TD’s shares increased 0.6 per cent in Toronto.
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Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 07/11/25 4:33pm EST.
| Symbol | Name | % change | Last |
|---|---|---|---|
| SCHW-N | The Charles Schwab Corp | + 1.1 % | 95.24 |
| TD-T | Toronto-Dominion Bank | + 0.04 % | 113.58 |
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