If you've been trading on TD Ameritrade, get ready to say goodbye.
XTD Ameritrade clients are being notified now their accounts are being moved into Charles Schwab (SCHW) starting next year. It's a long-awaited move after Schwab announced it would buy TD Ameritrade in 2019. But until now, the two trading platforms operated separately, as before.
But that's changing starting on a rolling basis in the beginning of next year. "We're nearing the point where two great firms become one and TD Ameritrade clients become Schwab clients," wrote Jonathan Craig, head of investor services, in a note to clients this week.
A Schwab spokeswoman confirmed the move. "Yes, the retail client transition process is anticipated to begin with a relatively small number of client accounts in February 2023, over Presidents Day weekend," said Schwab spokeswoman Margaret Farrell.
What does this mean? The rubbing out of a major online brokerage further consolidates the industry that investors count on. It's also reduces the number of Best Online Brokers to choose from. TD Ameritrade, founded in 1971 as Ameritrade, was a pioneer in online trading, responsible for making trading affordable and accessible to the masses.
What About Thinkorswim?
Savvy traders are most concerned about the future of Thinkorswim. Thinkorswim is a sophisticated trading platform that attracted many TD Ameritrade clients.
As promised at the time of the buyout, Schwab says Thinkorswim "is here to stay" and will migrate to Schwab later in 2023, the letter says. Schwab is also vowing to keep commissions low, which are already free for most stock trades. "By leveraging the combined strength of both companies, we'll be able to offer you even more pricing improvements," the letter said.
"You have our commitment that the fee schedule for online trading commissions and fees at Schwab will be the same or lower for all transactions," the letter said.
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More Changes For TD Ameritrade Clients
Schwab vows to minimize disruption by moving accounts from TD Ameritrade into "one of several groups." Customers will get three months notice of the move prior to it happening. It will also do the moves over a weekend.
A small number of accounts will move in February 2023, over Presidents Day weekend. A larger number of accounts will move in three following groups over the course of 2023: Memorial Day weekend, Labor Day weekend and a weekend in early November.
TD Ameritrade customers new to Schwab will need to sign up for new Schwab usernames and passwords to access their accounts. More than 400 physical Schwab branches will be available to TD Ameritrade customers. Schwab didn't say what will happen to TD's branches.
It's important to note that Charles Schwab consistently ranks high with customers, measured by the IBD Best Online Brokers survey. Schwab customers like the brokerage's customer service and consistency across all the attributes that matter to them most.
Farrell says Schwab is providing a timeline for TD Ameritrade customers online.
Goodbye old friend.
