TD Ameritrade and Schwab Are Merging. Here's What Investors Should Know

In a move that has been years in the making, TD Ameritrade and Charles Schwab are merging. Charles Schwab acquired TD Ameritrade in November 2019, but the two had been operating independently since then. TD Ameritrade clients were still able to use their accounts with that broker.

Schwab is now in the process of transitioning over all TD Ameritrade accounts. It has already moved over many of them, and the process is expected to be completed on Labor Day weekend (Sept. 2 through Sept. 5). If you use either of these stock brokers, here's what you need to know.

What investors should know

TD Ameritrade clients will have the biggest adjustment to make, since their accounts are being transitioned to Charles Schwab. If you have a TD Ameritrade account, you'll be notified of the transition date about three months in advance. You most likely already received an email about this.

After your account's transition date, you must log in to Charles Schwab going forward. You won't be able to access your account through TD Ameritrade anymore. Your account, its history, and its documents will automatically move to Schwab.

Investors who like to access their brokerage accounts from their phones will need to do so through the Charles Schwab mobile app. That has been one of the downsides of the transition for some investors. While both brokers offer quality stock trading apps, there are investors who believe the TD Ameritrade app has more features and better usability.

For Schwab clients, it's business as usual. Your account will remain available through the same Charles Schwab platform that you already use.

TD Ameritrade's thinkorswim platform and other tools will be available on Schwab

One of the things investors love about TD Ameritrade is its thinkorswim trading platform. It offers an impressive suite of trading tools, including:

• Economic data straight from the Federal Reserve
• Company profiles with data on revenue drivers
• Options statistics
• Robust charting tools

Fortunately, thinkorswim will be making the transition to Schwab as well. That includes the desktop, web, and mobile platforms. While it's not available on Schwab yet, it will be later in 2023, and all clients will be able to access it. In addition to thinkorswim, Schwab will also integrate TD Ameritrade's educational resources and other trading tools.

Investing options won't change much

The Charles Schwab-TD Ameritrade merger could be a major change for TD Ameritrade clients, at least as far as the user experience is concerned. Other than the difference in their respective platforms, Schwab and TD Ameritrade offer similar features, so there won't be much or any impact to your portfolio or investing costs.

Like all the best stock brokers, Schwab and TD Ameritrade offer commission-free trading of stocks and ETFs. They also each offer thousands of free mutual funds. If you had a TD Ameritrade account, you'll be able to invest in all the same stocks, and likely the same or similar investment funds.