Schwab-TD Ameritrade Merger: Complete Guide
The largest brokerage merger in history is complete. Here's what changed, what stayed the same, and what former TD Ameritrade customers need to know.
Merger Timeline
What the Merger Created
The combined Schwab is now the largest retail brokerage in the US:
- $8.5+ trillion in client assets
- 35+ million brokerage accounts
- 400+ physical branches
- The thinkorswim platform (from TD Ameritrade)
What Happened to thinkorswim
Good news for thinkorswim fans: Schwab kept it. The platform remains available to Schwab customers as "thinkorswim by Schwab." It's still one of the most powerful trading platforms available.
Some features changed during integration, and longtime users reported occasional friction, but the core platform survived.
What Changed for Former TD Customers
Account Numbers
TD Ameritrade account numbers changed to Schwab numbers. If you had automatic payments or transfers linked, you needed to update them.
Login Credentials
New Schwab login required. Your TD Ameritrade credentials stopped working after migration.
Cash Sweep
TD Ameritrade offered higher cash sweep rates than Schwab. After migration, cash defaults to Schwab's lower-yielding sweep. You can manually move cash to money market funds for better rates.
Some Features Lost
Certain TD Ameritrade features didn't survive:
- Some third-party integrations
- Specific research tools
- Certain order types during transition
What Improved
Branch Access
TD Ameritrade had limited physical presence. Schwab has 400+ branches. Former TD customers now have in-person support options.
Banking Integration
Schwab Bank offers checking accounts with ATM fee rebates, integrated with your brokerage. TD Ameritrade didn't have this.
Education Resources
Schwab's investor education is comprehensive. Combined with TD's content, there's now an extensive library.
Current Schwab Pricing
| Fee | Amount |
|---|---|
| Stock/ETF trades | $0 |
| Options (per contract) | $0.65 |
| Margin rate | 10.00% |
| Cash sweep APY | ~0.45% |
| Account transfer out | $50 |
Should You Stay or Switch?
Reasons to Stay at Schwab
- thinkorswim access — Still best-in-class platform
- Branch network — 400+ locations for in-person help
- Education — Comprehensive learning resources
- Scale — Largest broker means stability
Reasons to Consider Alternatives
- Cash sweep rates — Schwab's 0.45% is poor; Fidelity offers ~2.7%
- No IRA match — Robinhood offers 3%, Webull 3.5%
- PFOF concerns — Schwab uses PFOF; Fidelity doesn't
- High margin — 10% vs Public's 4.9%
Migration Issues to Watch
Some former TD customers reported:
- Cost basis data not transferring correctly
- Missing historical statements
- Option positions displaying incorrectly
- Linked accounts needing re-authorization
If you migrated, verify your cost basis data and historical records are accurate.
The Bottom Line
The Schwab-TD Ameritrade merger created a brokerage giant with the best of both worlds: Schwab's infrastructure and TD's thinkorswim platform. For most customers, it's a net positive.
The main drawback is Schwab's poor cash sweep rates. If you hold significant cash, manually move it to SWVXX (Schwab's money market) or consider whether a competitor like Fidelity better serves your needs.
Compare Schwab to Alternatives
See how Schwab stacks up against Fidelity, Robinhood, and more.
Compare All Brokers →