Charles Schwab completed its acquisition of TD Ameritrade in September 2023
Charles Schwab announced the deal in November 2019 and finished integrating TD Ameritrade into its operations on September 8, 2023. The acquisition took nearly four years to complete because regulators had to review whether combining the two largest retail brokerages would harm competition. During that time, Schwab and TD Ameritrade operated as separate companies with separate platforms, though Schwab owned TD Ameritrade as a subsidiary.
The integration process involved moving TD Ameritrade customer accounts, trading platforms, and technology systems into Schwab's infrastructure. This was one of the largest financial services integrations ever attempted, affecting millions of customer accounts and requiring coordination across multiple systems and regulatory bodies.
Key Takeaways
- Schwab announced the acquisition in November 2019 and completed the integration on September 8, 2023, after regulatory review.
- TD Ameritrade accounts were migrated to Schwab's platform during 2023, with the final transition completed by the September important date.
- Existing TD Ameritrade customers kept their accounts but now access them through Schwab's systems and interface.
- The deal was valued at approximately $26 billion when announced, making it one of the largest acquisitions in financial services history.
What happened to TD Ameritrade customer accounts
If you held an account with TD Ameritrade before the integration, your account was transferred to Schwab. You kept the same account number and your holdings remained unchanged, but you now log in through Schwab's website and mobile app instead of TD Ameritrade's thinkorswim platform or website.
Schwab provided tools to help customers transition, including guides for navigating the new platform and customer service support during the migration period. Some customers had the option to keep using thinkorswim (Schwab's advanced trading platform) for active trading while managing their account through Schwab's main interface.
How the acquisition price was structured
Schwab announced it would pay approximately $26 billion for TD Ameritrade when the deal was first disclosed in November 2019. The price was based on TD Ameritrade's stock price at the time of announcement, though the actual cash paid varied slightly as the deal progressed through regulatory review.
This made the acquisition one of the largest deals in financial services. For context, it was larger than most bank mergers that had occurred in the previous decade. The size of the deal reflected the value of TD Ameritrade's customer base, its technology platform, and its market position as one of the three largest retail brokerages in the United States.
Why regulators took so long to approve the deal
The Federal Trade Commission and other regulators spent nearly four years reviewing the acquisition because combining Schwab and TD Ameritrade reduced the number of major independent brokerages from three to two. The FTC was concerned about whether this would reduce competition and lead to higher fees or worse service for retail investors.
Schwab addressed these concerns by agreeing to certain conditions, including commitments about pricing and service levels. The company also agreed to divest certain assets and maintain certain service standards. These commitments were part of what allowed regulators to ultimately approve the deal.
The timeline from announcement to completion
| Date | Event |
|---|---|
| November 2019 | Schwab announces agreement to acquire TD Ameritrade for approximately $26 billion |
| 2020–2022 | Regulatory review period; both companies operate separately while awaiting approval |
| April 2023 | FTC approves the acquisition with conditions |
| Summer 2023 | Schwab begins migrating TD Ameritrade accounts to its platform |
| September 8, 2023 | Integration complete; all TD Ameritrade accounts now on Schwab's systems |
What changed for TD Ameritrade customers after the merger
The most visible change was the shift to Schwab's trading platform and account interface. Customers who were used to TD Ameritrade's website or thinkorswim had to learn Schwab's systems. Schwab provided transition support, but the learning curve was real for some users.
Pricing and account features largely remained the same or improved. Schwab did not raise commissions or account fees as a result of the merger. In some cases, customers gained access to Schwab's broader product offerings, including banking services and investment advisory options that were not previously available through TD Ameritrade.
Customer service moved to Schwab's support team, though Schwab hired many former TD Ameritrade employees to staff these functions. This meant that some customers might have spoken with the same representatives, but now under Schwab's organizational structure.
Why Schwab wanted to acquire TD Ameritrade
Schwab pursued the acquisition to consolidate its position as the largest retail brokerage in the United States. TD Ameritrade had millions of customers and a strong brand, particularly among active traders who used thinkorswim. Combining the two companies created significant cost savings through eliminating duplicate technology systems, back-office functions, and marketing expenses.
The deal also gave Schwab access to TD Ameritrade's customer base and allowed Schwab to offer a wider range of services to a larger group of investors. After the integration, Schwab could market its banking services, advisory offerings, and other products to former TD Ameritrade customers who might not have been aware of these options before.
Frequently Asked Questions
Do I still have my TD Ameritrade account after the merger?
Yes. Your account was transferred to Schwab, and you kept the same account number and holdings. You now access it through Schwab's platform instead of TD Ameritrade's, but the account itself is the same.
Did my account fees or commissions change when Schwab took over?
Schwab did not raise commissions or account fees as a result of the merger. In many cases, customers gained access to additional services or lower costs on certain products. Your specific fees depend on your account type and the services you use.
Can I still use thinkorswim after the merger?
Yes. Schwab kept thinkorswim available for customers who want to use it for active trading. You can access thinkorswim through your Schwab account, though your main account management now happens through Schwab's primary platform.
What if I had questions during the migration in 2023?
Schwab provided customer support throughout the migration period, including phone lines, online chat, and educational resources. If you had questions during the transition, Schwab's support team was available to help you navigate the new platform and answer questions about your account.
Did the merger affect my investments or holdings?
No. Your investments and holdings transferred exactly as they were. The merger did not force you to sell anything or change your portfolio. You maintained the same positions and could continue managing them through the new Schwab platform.