If you’ve been trading on TD Ameritrade, get ready to say goodbye.
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TD Ameritrade clients are now being notified that their accounts are being transferred Charles Schwab (SCHW) starting next year. It’s a long-awaited move after Schwab bought TD Ameritrade in 2019. But so far, the two trading platforms have operated separately as before.
But that is changing starting early next year. “We are getting close to the point where two great companies become one and TD Ameritrade customers become Schwab customers,” Jonathan Craig, head of investor services, wrote in a note to customers this week.
A Schwab spokesman confirmed the move. Schwab spokeswoman Margaret Farrell said: “Yes, retail customer transition is expected to begin with a relatively small number of customer accounts in February 2023, by the end of the week. of Presidents Day.
What does that mean? The removal of a large online brokerage firm further strengthens the industry that investors expect. It also reduces the amount Best online broker to choose. TD Ameritrade, founded in 1971 as Ameritrade, is a pioneer in online trading, responsible for making trading affordable and accessible to the masses.
What about Thinkorswim?
Savvy traders are most interested in the future of Thinkorswim. Thinkorswim is a sophisticated trading platform that has attracted many TD Ameritrade clients.
Like commitment at the time of acquisition, Schwab said Thinkorswim is “here to stay” and will move to Schwab after 2023, the letter read. Schwab also pledged to keep commissions low, which are already free for most stock transactions. “By leveraging the combined strength of both companies, we will be able to offer you even more price improvements,” the letter read.
“You have our commitment that the online trading commission and Schwab fee schedule will be the same or lower for all transactions,” the letter reads.
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More changes for TD Ameritrade customers
Schwab pledged to minimize disruption by moving accounts from TD Ameritrade to “one of many groups”. Customers will receive three months’ notice of the move before it happens. It will also make moves during a weekend.
A small number of accounts will move out in February 2023, over Presidents Day weekend. A large number of accounts will move into the following three groups throughout 2023: Memorial Day weekend, Labor Day weekend, and a weekend in early November.
TD Ameritrade customers will need to register a new Schwab username and password to access their accounts. More than 400 physical Schwab branches will be available to TD Ameritrade customers. Schwab did not say what would happen to TD affiliates.
Farrell says that Schwab is providing a timeline for online TD Ameritrade clients.
Goodbye old friend.
Source: IBD, S&P Global Market Intelligence
