Miscellaneous Insights
May 19th 2023

TD Ameritrade-Charles Schwab Merger Update #1

As you know, Charles Schwab acquired TD Ameritrade in 2020. Since then, they have worked hard to consolidate operations, adopting each firm's best practices and creating an exceptional organization. All TD Ameritrade accounts are expected to transition immediately after Labor Day. Here's what you need to know.

What’s Happening

As you know, in 2020, Charles Schwab acquired TD Ameritrade. Since then, the two firms have worked hard to consolidate operations, taking each firm’s best practices and making that part of what the final entity will provide to its clients and advisors.

The last part of this effort is expected to occur on September 5, 2023 (the day after Labor Day), when all TD Ameritrade Institutional accounts are transitioned to Charles Schwab Institutional accounts. The Charles Schwab name will be the ongoing surviving name for the combined company.

EKS Associates has a long-standing 20+ year history with Schwab. We are confident in their ability to safeguard client assets and appreciate their attention to detail regarding cybersecurity and identity threats.

How the Merger Will Impact Investors

We anticipate the transition will be seamless. Here are a few important things to note:

  • Your relationship with your advisor will not change.
  • The transition will not interfere in any way with your ability or our ability to continue to service your accounts. This includes making trades, initiating ‘move money’ requests, and providing you with account statements and tax documents.
  • Your account will automatically move from TD Ameritrade to Schwab.
  • Schwab will automatically transfer your assets and holdings – there is nothing you need to do.
  • After the move, you can access Schwab Alliance, the secure online client portal. Schwab Alliance makes managing your accounts easy for you and your advisor, giving you access to your accounts, statements, tax documents, and more.

Actions You’ll Need to Take

Here are a few tips to get you prepared:

  • You will have a new Schwab account number, so you must update any direct deposits or recurring payments you set up directly with your bank or other third parties. Any instructions already set up on TD Ameritrade will transfer over.
  • Set up your AdvisorClient® credentials before the transition to immediately access Schwab Alliance on day 1. Go to advisorclient.com to set up your login ID and password. This is the easiest way to view your accounts and balances and to get access to Schwab Alliance.

Timeline of Events

90 Days Before Your Transition Weekend. You will receive communication from Schwab approximately 90 days before the transition date (anticipated September 5). The information will contain details about your new accounts and what to expect until the accounts are transferred. Instructions on enrolling in Schwab Alliance will also be included.

60 Days Before Your Transition Weekend. You will receive specific details about your account, like your account agreements and information about your Schwab cash feature.

14 Days Before Your Transition Weekend. Certain routine requests for transitioning accounts will be temporarily suspended while preparations are made for the conversion. However, you and your advisor can continue trading and moving money until the close of business on the last day before account transitions. Your advisor can help you prepare for anything that may affect your account.

3 Days Before Your Transition Weekend. This represents the last day to establish a new ACH or wire connection with TD Ameritrade.

Your Final Day to Transact at TD Ameritrade. This is the last day to initiate wires, deposit checks, and use checks/debit cards at TD Ameritrade. Open good-till-canceled/good-till-date orders will be canceled after the market closes. You’ll get paper confirmations for trades placed on this date, even if you’ve opted to get them electronically.

Your Last Day at TD Ameritrade. Access to your TD Ameritrade account will no longer be available starting at 8:30 p.m. ET on the Friday before your transition weekend. During this time, you will not be able to see your account. Beginning on the first business day following your transition weekend, you can log in to Schwab Alliance to view everything.

First Business Day After Conversion Weekend. Welcome to Schwab! If you haven’t already set up your Schwab Alliance credentials, do so now. You can begin using new checks and update any direct deposit ACH information.

How to Get Your Questions Answered

It’s natural to have questions or concerns about this transition. Therefore, Schwab will provide support and resources to help you navigate the change. Here are two great pages to visit to read more about the transition timeline and review Frequently Asked Questions:

Of course, you are always welcome to contact your EKS Associates advisor, and we will be happy to answer any questions you may have.

July 2023 Update: Read Merger Update #2 for a preview of the communications to come.

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