Since 2018, Prudent Investors has used TD Ameritrade (TD) as its custodian to custody its client assets.
In November 2019, Charles Schwab (Schwab) announced that they would be acquiring TD Ameritrade in an all-stock transition. The TD Ameritrade to Schwab acquisition, which boasted lower operating expenses and enhanced client experience, was expected to close in the second half of 2020 with integration efforts kicking off shortly thereafter. Close to four years after the initial announcement, Schwab is finally ready to finalize the transition. As of September 2, 2023 TD’s accounts will transition to Schwab.
TD Ameritrade Is Now Officially Part of Schwab!
Hey there, fellow investors! If you’ve been wondering about the fate of your TD Ameritrade account, I’ve got the definitive answer for you: Yes, TD Ameritrade has become Schwab. The acquisition is complete, and all TD Ameritrade accounts have been moved to Charles Schwab.
As someone who’s been following this merger closely (and yes, I had a TD Ameritrade account myself!), I wanted to share everything you need to know about this transition. This ain’t just some corporate reshuffling—it affects how millions of us manage our investments.
The Timeline: How We Got Here
The journey of TD Ameritrade becoming part of Schwab wasn’t an overnight thing, Here’s how it all unfolded
- November 2019: Charles Schwab announced its plan to acquire TD Ameritrade in a $26 billion deal
- October 2020: The acquisition was officially completed
- 2020-2024: The companies operated separately while integration plans were developed
- 2024: Full integration completed – TD Ameritrade, Inc. is now officially part of Charles Schwab
I remember when the news first broke – there was a ton of speculation about what would happen to all those beloved TD Ameritrade tools and platforms. Well, now we have our answers!
What This Means For TD Ameritrade Clients
If you’re a former TD Ameritrade client (like me!), here’s what you need to know right now:
Account Access
All TD Ameritrade clients are now Schwab clients. To access your account:
- 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 use your existing login (no need for new credentials)
- Having trouble? Call 800-435-4000 for help (or +1-415-667-8400 if you’re outside the US)
I gotta say, the first time I tried logging in after the switch I was a bit confused. But once I set up my new Schwab credentials everything went smoothly.
Historical Information
Worried about losing your transaction history? Don’t be! You can still access:
- Up to 10 years of historical tax documents, brokerage statements, and trade confirmations
- Up to four years of transaction history
- Realized gain/loss data (available for at least two years after moving to Schwab)
- Historical balance information via old TD Ameritrade statements
Just navigate to “Accounts > Statements & Tax Forms” on Schwab.com or “More > Documents” on the Schwab Mobile app.
Trading Platforms Available at Schwab
One of the biggest concerns for TD Ameritrade clients was whether they’d still have access to their favorite trading platforms. Good news! Schwab is continuing to offer the thinkorswim platform suite, along with Schwab’s own platforms:
Mobile Apps
- thinkorswim mobile: Same great mobile trading experience with Level 2 streaming quotes, charting tools, and options features
- Schwab Mobile: Manage all accounts on the go with summary views, market insights, trading, and money management tools
Web Platforms
- thinkorswim web: The streamlined web version of thinkorswim with charting, analysis tools, and Level 2 quotes
- Schwab.com: Comprehensive portfolio views, research tools, account management, and access to documents
Desktop Platform
- thinkorswim desktop: The full-featured, customizable software platform for advanced trading and analysis
I’ve personally been using both thinkorswim and the Schwab platforms, and I gotta say, having options is nice! The thinkorswim desktop platform is still my go-to for technical analysis, but Schwab.com has some great research tools I didn’t have before.
What Former Scottrade Clients Should Know
If you’re feeling like you’ve been through this before, you might be a former Scottrade client. Here’s your situation
- Scottrade clients transitioned to TD Ameritrade in February 2018
- Now, those accounts have moved to Schwab
- You’ll need to set up a Schwab Login ID and password if you’re new to Schwab
- If already a Schwab client, you can use your existing login
This must feel like a game of financial musical chairs! But hopefully this latest move is the last one for a while.
The Benefits of Being a Schwab Client
While change can be annoying (trust me, I get it!), there are some definite advantages to being part of the Schwab family:
World-Class Trading and Investing
- Access to intuitive platforms including thinkorswim (desktop, web, mobile)
- Schwab.com and Schwab Mobile platforms
- Tools designed for different types of investors and traders
Transparent Pricing
- Clear explanation of fees
- Commitment to transparent pricing
Exceptional Service
- Combined teams for better support
- Access to more than 400 physical branches nationwide
Wider Product Range
- Greater range of investment choices
- More wealth management solutions
- Customized options for different financial needs
I’ve found Schwab’s research tools to be particularly helpful for long-term investment decisions, while still having access to thinkorswim for my more active trading needs. It’s kinda like getting the best of both worlds.
Common Questions About the Transition
I’ve been chatting with fellow investors, and these are the questions that keep coming up:
What happens to my current TD Ameritrade holdings?
Your investments remain the same – they’ve just been transferred to Schwab. You don’t need to sell or rebuy anything.
Will the fees change?
Schwab is committed to transparent pricing, but it’s always smart to review the fee structure for any changes that might affect your specific trading style.
Can I still visit a local branch?
Yes! Schwab has over 400 branches nationwide, and many former TD Ameritrade locations have been converted to Schwab branches.
What about tax implications?
The transfer of your account to Schwab is not considered a taxable event. Your cost basis information has been transferred over.
Will my trading strategy need to change?
Not necessarily. With access to thinkorswim platforms and Schwab’s tools, you can continue with your existing strategy or explore new approaches.
How the Platforms Compare
As someone who’s now used both TD Ameritrade and Schwab platforms extensively, here’s my take on how they stack up:
| Feature | TD Ameritrade Experience | Schwab Experience |
|---|---|---|
| Research Tools | Strong with thinkorswim | Excellent fundamental research |
| Mobile Trading | Very good | Very good, different interface |
| Options Trading | Excellent with thinkorswim | Still excellent with thinkorswim |
| Educational Resources | Extensive | Extensive |
| Account Management | Straightforward | Comprehensive |
| Customer Service | Good | Excellent |
My Personal Experience with the Transition
When I first heard my TD Ameritrade account would be moving to Schwab, I was pretty worried. I’d spent years getting comfortable with the TD platform, customizing my charts, and saving my favorite indicators.
The actual transition went smoother than I expected. Setting up my Schwab login took about 10 minutes, and I was relieved to see all my positions transferred correctly. The biggest adjustment was getting used to where everything was located in the new interface.
The best surprise? I still have access to thinkorswim, which was my main concern. I can still use my familiar charting setups while gradually exploring what Schwab has to offer.
Tips for Making the Most of Your New Schwab Account
Based on my experience navigating this transition, here are some tips that might help you:
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Explore both platforms: Don’t just stick with what you know. Try both thinkorswim and Schwab’s native platforms to find the best fit for different tasks.
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Take advantage of expanded research: Schwab offers excellent fundamental research tools that complement thinkorswim’s technical analysis capabilities.
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Consider consolidating accounts: If you had accounts at both TD Ameritrade and Schwab, now might be a good time to consolidate for easier management.
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Check your beneficiary information: Make sure your beneficiary designations carried over correctly.
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Review your cost basis methods: Verify your cost basis information transferred accurately, especially for tax planning purposes.
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Update your banking connections: If you had automatic deposits or withdrawals set up, make sure they’re still working properly.
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Save new contact information: Update your records with Schwab’s customer service numbers and website.
The Future of Your Investments at Schwab
Schwab has a strong reputation in the investment industry, and the addition of TD Ameritrade’s technology and client base should make the combined company even stronger. As a Schwab client, you can expect:
- Continued investment in trading technology
- Expansion of research and educational resources
- Maintenance of competitive pricing
- Enhanced customer service
The integration of these two major investment firms represents a significant shift in the brokerage industry, creating a massive player that serves investors across all experience levels.
Final Thoughts: Embracing the Change
Change can be uncomfortable, but sometimes it opens up new opportunities. While I miss some aspects of the old TD Ameritrade experience, I’ve discovered features at Schwab that I probably wouldn’t have explored otherwise.
The most important thing to remember is that your investments themselves haven’t changed—just the company managing the platform. Your stocks, ETFs, mutual funds, and other investments remain the same.
If you’re feeling overwhelmed by the transition, take it one step at a time. Start by setting up your login, verifying your account information, and then gradually explore the new tools available to you.
And hey, at least we still have thinkorswim! That’s a win in my book.
Have you already made the switch? I’d love to hear about your experience in the comments below. What do you miss about TD Ameritrade? What do you like better about Schwab? Let’s help each other navigate this change!
For our Individual Clients:
Will I need to change my direct deposit and ACH instructions?
For individual accounts, ACH, wires, checks, and internal transfer standing instructions that are already on file at TD Ameritrade will transfer over as part of the merger.
If direct deposit instructions were set up at your bank, you will need to update those instructions to reflect your Schwab account information, which you should receive around the last week of August.
Please contact us if you need Schwab’s routing numbers or addresses when setting up your direct deposit instructions at your local institution. You may also refer to the bank instructions in the appendix below.
Will contribution and distribution instructions for my retirement accounts transfer over?
Most recurring contribution and distribution instructions, such as traditional IRA accounts and Roth IRA accounts, will transfer over without issue. However, there are some exceptions. Contribution instructions via ACH for individual 401(k) and SEP retirement accounts will not transfer over and contribution instructions via ACH and internal transfers to SIMPLE IRA accounts will also not transfer over.
For our Fiduciary Clients:
Will my Trust Accounts transfer over?
Trust accounts and trustee information will transfer over with no new actions required on your side.
Will my Trust Account bank instructions transfer over? Yes, ACH instructions will transfer over for trust accounts. If your account with TD currently has checking and/or debit card features, those will transfer over too.
Will my Conservatorship, Guardianship, and Estate accounts transfer over?
We’ve worked with Schwab to coordinate a smooth transition, and these accounts will transfer over. However, Schwab’s platform setup does not allow ACH and bank account instructions to transfer over or new ACH instructions to be created for conservatorship, guardianship, and estate accounts.
How can funds be accessed for Conservatorship, Guardianship, and Estate accounts?
Schwab allows these accounts to send out funds either through check writing or wire transfers. Wire transfers are free if initiated through Schwab online, though there may be a charge at the receiving bank. For accounts that are impacted by Schwab’s ACH policies, we will be reaching out to you to assist you in adding checks or wiring instructions to your accounts.
There is also another option, which is opening an operating account at Schwab bank and then journaling funds from that Schwab brokerage account to the operating bank account with Schwab. If this is something you are interested in, please reach out to us after September 1.
Will I receive multiple tax documents?
Yes, you will receive two 1099s for the 2023 tax year. TD Ameritrade will send a 1099 for the period of January 1, 2023 to September 1, 2023. Schwab will send a 1099 for the period of September 2, 2023 to December 31, 2023. We recommend you notify your accountant that there will be multiple 1099s as a result of the merger.
Additionally, the accountant should be aware that there will most likely be residual transactions for dividends that will be swept from TD’s accounts to Schwab in the month or so following.