Schwab in talks to buy TDAmeritrade

IIRC trading commissions at Schwab were about 5% of revenue and at TD something like 15%. This article: https://www.fool.com/investing/2019/10/06/is-td-ameritrade-a-buy.aspx says it was 25%. Either number, though, is probably big enough that Schwab landed a fatal blow.

The fact that Schwab was losing much less revenue than some competitors was well-discussed internally. I called my guy just to joke with him/"Bill, I just wanted to see if you survived the zero commission decision?" He immediately came back to me with the relative revenue discussion.
 
Interesting times we're living in, for sure. I'm happy about this. Vanguard transferred DH's VBO assets to TDA in September, which was a positive change. (The other 50% that must remain with the mutual fund side of the 401k is still with Vanguard.) Yet I do prefer Schwab and Fidelity over TDA.
 
I've used several brokerage firms over the past 40 years and I finally settled with Schwab. If you can do it yourself, Schwab is great. Meets (exceeds) all my needs and "I'm a hard grader". (Anyone reading my past post should recognize that) Account managers can be hit and miss but their help desk is outstanding.
 
TD Ameritrade has a branch considerably closer than Schwab or Fidelity. Something to consider as I continue to reevaluate Vanguard.
 
RunningBum said:
TD Ameritrade has a branch considerably closer than Schwab or Fidelity. Something to consider as I continue to reevaluate Vanguard.
Click to expand...

An interesting point. About a half hour from us is a Fidelity office literally a short walk away from a TD Ameritrade office, and Schwab has an office about a mile down the street from them. I'd guess that Schwab wouldn't see a benefit in having 2 offices so close together.
 
I bought TD Ameritrade stock after it dropped following Schwab's announcement they were going to $0.00 commission trades. With the news that Schwab is likely going to buy TD Ameritrade, I sold today.

In seven weeks I made 44.8%.
 
Qs Laptop said:
I bought TD Ameritrade stock after it dropped following Schwab's announcement they were going to $0.00 commission trades. With the news that Schwab is likely going to buy TD Ameritrade, I sold today.

In seven weeks I made 44.8%.
Click to expand...
Would be an even better story if you used neither as your brokerage for your trades!
 
I've gone out of my way today to tune into the "talking heads" on CNBC give their views on the general state of he brokerage industry, the business strategies of each of the major players and the pros/cons of the potential Schwab/Ameritrade consolidation. Very interesting. I've learned a lot.

My FIRE portfolio is currently consolidated at Schwab and I've been a Schwab customer for something like 30 years. It hasn't all been roses by a long shot. We've done some serious arm wrestling as they've changed some policies over the years. But at 72, and with DW not really into our finances, they're currently the best solution for us. Totally DIY today but with shark-attack-free services available at a local walk-in office for DW if I predecease her.
 
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RunningBum said:
Would be an even better story if you used neither as your brokerage for your trades!
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Then it's a better story because I made these trades through my account at Fidelity. I had to pay $4.95 to buy, but nothing to sell. Fidelity took a week or so to get on the $0.00 stock trade bandwagon.
 
So it's been confirmed now that TDA will be acquired by Schwab. We have about 45% of our assets with TDA, 40% with FIDO, 9% with VALIC, and 6% with VG. I plan to move the VG account to Fidelity and eventually move the VALIC account too. My FIDO guy was hinting at getting me to transfer TDA to him as well but I haven't expressed an interest yet. My account advisors at both places are new to me and both seem competent. There is no difference in my distance from any of the three offices. Wondering if I should go ahead with the VG transfer and wait til the dust settles before doing any more consolidating?
 
Depending on how the consolidation goes, I think you would like Schwab. I have the minor part of my portfolio there, with most of it at Fidelity. Gave up on Vanguard some time ago.
 
The merger will happen... I got this email today from TDA:

We're excited to announce that Charles Schwab and TD Ameritrade have reached an agreement for Schwab to acquire TD Ameritrade.

The combined company will retain the Schwab name, and will reflect the best that each legacy firm has to offer, including leading trading and wealth management platforms, investor education, award-winning service, and banking.* This should bring clients like you an outstanding investing experience.

For now, the transaction is subject to customary closing conditions and is expected to close in the second half of 2020. During that time, there should be no impact to your account or how you work with TD Ameritrade.

For additional information about the transaction, please visit www.amtd.com for details.



We have two accounts at TDA and one at Schwab. We'll see if they ask us to consolidate the accounts. I prefer the tools and web interface that TDA provides. The Schwab website is outdated.
 
Freedom56 said:
I prefer the tools and web interface that TDA provides. The Schwab website is outdated.
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I feel the opposite. We had accounts at TDA about 10 years ago. Vanguard transferred DH's 401k VBO accounts to TDA in September. TDA's site doesn't impress me. Trade confirmations and monthly statements are virtually identical as they were 10 years ago. Contrast that with Schwab and Fidelity, who have both updated their websites, trade confirmations, monthly statements, and 1099's over the same time period.

At any rate, people who aren't happy with Schwab still have plenty of time to made a decision of they don't want to be with them. It's estimated to take about 18 to 36 months to fully transition.
 
Freedom56 said:
The merger will happen... I got this email today from TDA:

We're excited to announce that Charles Schwab and TD Ameritrade have reached an agreement for Schwab to acquire TD Ameritrade.

The combined company will retain the Schwab name, and will reflect the best that each legacy firm has to offer, including leading trading and wealth management platforms, investor education, award-winning service, and banking.* This should bring clients like you an outstanding investing experience.

For now, the transaction is subject to customary closing conditions and is expected to close in the second half of 2020. During that time, there should be no impact to your account or how you work with TD Ameritrade.

For additional information about the transaction, please visit www.amtd.com for details.



We have two accounts at TDA and one at Schwab. We'll see if they ask us to consolidate the accounts. I prefer the tools and web interface that TDA provides. The Schwab website is outdated.
Click to expand...



I must be small beans. I’ve got 4 accounts at TD and haven’t received a thing[emoji848].
Admittedly, it’s not much by their standards. I guess they’ll get around to telling the small fries eventually 🤣.
 
I'm actually looking forward to being with Schwab. I've started out with Waterhouse Investor Services back in the mid 90s, and have followed through all the incarnations up to now. I've thought in the past about switching to Schwab, but waiting just proved one of the two laws of work that I developed as an IT guy.

"If you wait long enough, the problem will go away."
 
My only connection with Personal Capital is that I have used them for tracking my accounts although I prefer to use Sigfig for that. However they apparently used the fact that I have them monitoring my TDA accounts to send me the following email:
[FONT=&quot]Hi, [/FONT]

[FONT=&quot] In case you haven’t heard the news, Charles Schwab has agreed to buy TD Ameritrade for $26 billion. If this raises some concerns, don’t worry - we’re here for you. [/FONT]

[FONT=&quot] Since you currently have an account at TD Ameritrade, you may be wondering what this means for your account. Full merger details will take months to work out, so it’s impossible to say for sure. However, here are two things you might want to consider: [/FONT]


  • [FONT=&quot]If the acquisition goes through, the new entity will have more than $5 trillion in total assets -- a size CNBC refers to as a “behemoth.” Oftentimes, though not always, this results in less personalized attention and diminished client service.
    [/FONT]


  • [FONT=&quot]There are inherent conflicts of interest in the brokerage business, and Schwab is no exception. They've been criticized by some for the high level of cash in managed portfolios -- sometimes as high as 30%. Schwab makes money by lending this money to borrowers at interest rates much higher than it pays to depositors. Is that where you want your money?[/FONT]
[FONT=&quot]We're here to help with any questions and to make sure you have the right information to do what's best for you and your family. If you'd like to discuss what this news means for you, or simply learn about other options for your TD Ameritrade account, we'd love to spend a few minutes on the phone with you. Just book a time below and one of our advisors will connect with you soon.[/FONT]

[FONT=&quot] Talk to your advisor[/FONT]

[FONT=&quot] - Personal Capital[/FONT]​
 
Ian S said:
My only connection with Personal Capital is that I have used them for tracking my accounts although I prefer to use Sigfig for that. However they apparently used the fact that I have them monitoring my TDA accounts to send me the following email:[FONT=&quot] ...[/FONT]
Click to expand...
When I was in the aerospace business and writing proposals for large government technology programs, one of the first things we did very early in the proposal process is to work out our "ghost stories." These typically highlighted weaknesses in other approaches we expected to be proposed. We then wove the ghost stories into the proposal text wherever we could.
"[FONT=&quot]Oftentimes, though not always, this results in less personalized attention and diminished client service."[/FONT]

"Oftentimes?!!?" Statistics please.

"[FONT=&quot]the high level of cash in managed portfolios -- sometimes as high as 30%"[/FONT]

"sometimes?!!?" Statistics please.

"[FONT=&quot]There are inherent conflicts of interest in the brokerage business ... "[/FONT]

[FONT=&quot] Is the sky blue? Of course, and at Personal Capital as well. So what it your point?[/FONT]
​
[FONT=&quot]
It's a fine email; something I might have written if I were at Personal Capital. But this type of thing must be read critically.
[/FONT]
 
gwraigty said:
I feel the opposite. We had accounts at TDA about 10 years ago. Vanguard transferred DH's 401k VBO accounts to TDA in September. TDA's site doesn't impress me. Trade confirmations and monthly statements are virtually identical as they were 10 years ago. Contrast that with Schwab and Fidelity, who have both updated their websites, trade confirmations, monthly statements, and 1099's over the same time period.

At any rate, people who aren't happy with Schwab still have plenty of time to made a decision of they don't want to be with them. It's estimated to take about 18 to 36 months to fully transition.
Click to expand...

We had accounts at Datek in the mid 90's who had streaming quotes and fast execution. Then Datek was purchased by Ameritrade and then Ameritrade merged with TD Waterhouse and became TD Ameritrade. The Datek tools were carried onto Ameritrade and then TD Ameritrade. We also have a lot of our assets at Fidelity. I found that TD Ameritrade fixed income group has more access to new bond and preferred issues to retail investors than Schwab or Fidelity who give priority to their funds and other institutional investors. Schwab and Fidelity push bonds onto retail investors that nobody wants. All three give us free dinners, free concert tickets, and other gifts throughout the year. All three personally phone us every three months to see how we are doing. We have a so called "wealth investment" adviser (a guy who has a work history of about 8-12 months at the firm before moving on) assigned to us who makes these calls.
 
We have our money in 3 different places. Vanguard for our IRAs (Wellington and Wellsley) and a portion of cash, TDA (started when it was Scottrade) for all individual stocks, and our credit union for cash/CDs. It had been more spread out a few years ago but I felt it necessary to simplify for ease of record keeping and future loss of a few little grey cells.
The individual stocks pay dividends that we have available for use if we need them but so far they are swept into a MM account. Otherwise we will not be selling any stock to avoid higher taxes. They will be inherited by the son and daughter when that time comes.
To simplify further I was considering having the stocks transferred to Vanguard. In that way I would have only 2 places to keep track of and could more conveniently access IRAs and individual stocks information through the Vanguard website and quarterly statements.
Any reason/advantages why I should stay with TDA/Schwab? Any reason why I shouldn't make the transfer to Vanguard?


Cheers!
 
I have pretty much the same setup with accounts (Schwab, Vanguard, CU). No reason to do anything for me. DD has all the info and she is beneficiary. All is good.
 
Badger said:
Any reason/advantages why I should stay with TDA/Schwab? Any reason why I shouldn't make the transfer to Vanguard?
Click to expand...
We have similar setup--Schwab and Vanguard.

The Schwab account is intended to pass to heirs. It has checking, etc., so we occasionally use that. It is only a taxable brokerage.

The Vanguard account is larger, and holds Roth, IRA, etc.

I've been very happy with Schwab (since 2014 or so.) I'm ok with Vanguard in the same time period. IOW, we've felt no need or benefit to simplifying with one institution. At this time, if I had to pick, I'd consolidate everything at Schwab or FIDO. This is something that is in the back of my mind. I will go first, in all probability, and it will be helpful to have a nearby office. One child is familiar with Schwab and our local bank, so things will go smoother, I predict.

A transfer of inherited assets to that Schawb brokerage went well this year, taking just a few days. Schwab Customer Service is very good.

And, of course, YMMV.
 
"I'm actually looking forward to being with Schwab. I've started out with Waterhouse Investor Services back in the mid 90s, and have followed through all the incarnations up to now. I've thought in the past about switching to Schwab, but waiting just proved one of the two laws of work that I developed as an IT guy.

"If you wait long enough, the problem will go away." "


Was the other "Prepare three envelopes"? [emoji16]
 
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easy $500 if you are tda customer but not yet Schwab

Hi,

To do before the two companies are one, last week I transferred $100k of my roth at tdameritrade to Schwab and as a new Schwab customer and with a referral code, they will add $500 of good roth money into my account in 90 days. The money has to stay in the account for awhile, didn't notice how long. Tdameritrade doesn't charge a fee for partial transfer. When they do become one company, probably will be 2 accounts.

Not a new promo, but I wasn't sure if they would honor it from tda since they are buying tda, and they did.

This link has info about the schwab promo and also a promo code that worked for me:

https://www.moneysmylife.com/charles-schwab-promotions/
 
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