3 Reasons I Recently Switched Brokers for the First Time in 20 Years

I've been investing for more than 20 years. I opened my first brokerage account in 2002, when I was still in college, with TD Ameritrade (back then, it was simply called Ameritrade).

Fast forward to the present, and I've kept my investment accounts with TD Ameritrade ever since. In addition to my main brokerage account, I've added a few along the way. When I had a 401(k) from a former employer, I rolled it into a TD Ameritrade IRA. When I became self-employed, I opened a SEP IRA. When I had kids, I opened a custodial account (UTMA) for each of them.

I have loved my experience with TD Ameritrade. I've tried competitors (usually with play money, for research purposes), and I've found it to be the best combination of a full-featured broker and a tech-heavy investment platform in the industry. Its educational tools helped me learn about investing in my early days, and the thinkorswim trading platform is absolutely fantastic for keeping up with many stocks at once, just to name a few of the reasons I've stayed for so long.

However, something major changed recently. TD Ameritrade was acquired by Charles Schwab, and my accounts have started moving over to the Charles Schwab platform. While I'm keeping the existing accounts where they are, I decided to open new brokerage accounts with app-focused SoFi Active Investing for my future investment dollars.

1. I don't love the Charles Schwab trading interface

First, I don't dislike Charles Schwab's platform. It has a lot of features that I like, such as great stock screeners and other valuable research functionality. And, I'm a big fan of the thinkorswim platform, which Charles Schwab is thankfully keeping. In full disclosure, access to thinkorswim is why I'm leaving my existing Charles Schwab accounts there.

However, I don't love it nearly as much as I did TD Ameritrade. Its web-based platform is far more difficult to navigate, and it took me a little while to even figure out how to buy and sell stocks, which most brokers accommodate through some sort of order window that is always somewhere on the screen.

On the other hand, SoFi Active Investing makes it remarkably easy to contribute money to my account, and to buy and sell stocks. The order screen is simple to use, and I can choose to buy a certain number of shares or invest a specific dollar amount and buy fractional shares.

2. I like having my finances in one place

One of the biggest reasons SoFi jumped to the top of my brokerage search list was that I was already a customer. I've had my checking and savings accounts with SoFi for a couple of years now, and I've had a fantastic experience. The checking account is far better than the online bank I previously used, and SoFi's banking app is the most user-friendly and easy-to-navigate financial app I've ever used.

Not only that, but I find a lot of value in keeping all of my major financial accounts with the same institution. I can manage my bank accounts, make investments, pay my credit card, and even apply for a mortgage within the same app.

3. Free money for retirement contributions

As a self-employed individual, I'm responsible for making my own retirement contributions. And because I'd like to keep my taxes as low as possible, I like to contribute as much as I'm allowed. So, when SoFi started giving a 1% match on IRA contributions, it caught my attention. This means that if I deposit $5,000 into my IRA, SoFi adds $50. This may not sound like a ton, but it's a feature Charles Schwab doesn't offer, and over time, those bonuses can make a significant difference.

I mentioned that I'm keeping my existing Charles Schwab accounts (for now). But that might change. SoFi offers a 1% IRA match on account transfers from other institutions, and since I've been growing my IRA for a while now, 1% is a pretty enticing incentive.

The bottom line

To be fair, SoFi Active Investing isn't perfect. There's no such thing as a brokerage account that checks all the boxes -- at least I haven't found one. For example, compared with TD Ameritrade and Charles Schwab, SoFi's platform is a bit light on features. It doesn't have things like stock research reports, and it doesn't (yet) offer many advanced trading tools. I also can't invest in mutual funds or put money into CDs through SoFi. And even if you're in the market for a new broker, SoFi might not be the right fit. I'd suggest taking a look at our top-rated brokers to see which could be the best choice for you.

However, for what I need, SoFi was the best fit. I didn't take the decision lightly -- after all, other brokers have been trying to entice me away from TD Ameritrade for many years and I stayed in one place. But the recent shake-up forced me to assess what features I'm really looking for, and that's what led me to make a change.