The acquisition of Scottrade, was completed by brokerage firm TD Ameritrade on Sept. 18, 2017.
Scottrade was an online brokerage firm that served more than 3 million accounts in the U.S. and had consolidated assets of approximately $24.4 billion.
Founded in 1980 by Rodger O. Riney, the firm had about 500 branch offices throughout the U.S. that provided in-person support and small-group educational seminars.
When Scottrade launched its website in 1996, it was one of the first brokerages to offer online trading. The firm offered a full lineup of investment products, trading services, bank accounts, and market research tools. Here’s a quick look at what happened to Scottrade and the effects of the deal on customers.
- Scottrade was an online brokerage firm that served more than 3 million accounts in the U.S. and had consolidated assets of approximately $24.4 billion.
- The acquisition of Scottrade was completed by brokerage firm TD Ameritrade on Sept. 18, 2017.
- After the acquisition formally closed, all Scottrade accounts were officially moved to TD Ameritrade by February 2018.
- Scottrade was sold to TD Ameritrade for several reasons including concerns over rising regulatory pressure in the brokerage industry as well health issues of founder and CEO Rodger Riney.
- Scottrade was reviewed by several sites who unanimously gave the broker high marks for customer service.
Why Did Scottrade Close?
Scottrade Financial Services closed after TD Ameritrade bought Scottrade for $4 billion in cash and stock.
Ameritrade and privately-held Scottrade announced they had entered into a definitive agreement in late October 2016. The acquisition was completed about a year later on Sept. 18, 2017.
In a statement, TD Ameritrade said, “The combination of our two highly complementary organizations would positively alter the landscape of investing, extend our leadership position, and transform the lives of millions of investors for the better.”
Scottrade's Difficulties
The decision to sell came at a time when the brokerage industry was facing several new difficulties. The issues included demands for innovative technology and new federal rules requiring firms to act in their clients' best interests when advising on retirement accounts.
Securities analyst Michael Flanagan stated that Riney and his company were "looking forward and seeing a lot of industry challenges." Flanagan added that "Wall Street continues to be assaulted by the regulators, so the compliance issues are never-ending" and that regulators are "spending more money on technology and legal issues."
Scottrade wasn’t the only online brokerage deciding to close shop in 2016.
In April of that year, Ally Financial agreed to buy online broker and independent advisor TradeKing Group for about $275 million. In July, E-Trade Financial Corporation announced it had agreed to acquire OptionsHouse’s parent company Aperture New Holdings for $725 million in cash.
Scottrade’s decision to sell was also influenced by Riney’s health issues.
In late 2015, he announced he had been diagnosed with multiple myeloma, an incurable form of blood cancer. Riney and his wife, Paula, made an initial gift of $5 million to support multiple myeloma research at the Siteman Cancer Center, where Riney was receiving treatment.
The Alvin J. Siteman Cancer Center at Barnes-Jewish Hospital and Washington University School of Medicine is a cancer treatment, research, and education institution.
“When we learned there was not a lot of money going to multiple myeloma research, Paula and I decided to get more involved,” said Riney. “This is cutting-edge work, and our initial investment may move the needle by opening the door for additional grant funding.”
The Riney's gave an additional $20 million gift to set up the Paula C. and Rodger O. Riney Blood Cancer Research Initiative Fund at Washington University School of Medicine in 2018.
What Happened to Scottrade Accounts?
Following the completion of the acquisition, Scottrade Bank accounts were closed as of Feb. 17, 2018. Bank account balances were automatically deposited in the customers’ Scottrade brokerage accounts or sent as checks to close out the accounts. Brokerage account balances were transferred to the customers’ new TD Ameritrade brokerage accounts.
The transition was intended to be as seamless as possible for Scottrade customers. They were able to log into their new TD Ameritrade accounts by using their existing Scottrade account numbers as the user IDs with their old Scottrade passwords. Scottrade customers can also access their previous statements and tax documents through TD Ameritrade.
Today, TD Ameritrade provides brokerage services for 11 million accounts that total more than $1 trillion in assets.
What Did Scottrade Reviews Say?
Scottrade was reviewed by several sites who unanimously gave the broker high marks for customer service. Its reputation for customer service was mostly based on 500 branch locations and the rapport that was built with clients since its founding in 1980.
Those advantages were a holdover from the pre-Internet era. Though the company offered online trading since the mid-1990s, Scottrade reviews often pointed out that the online experience was not a company strength.
The qualities Scottrade brought to the 21st century from its 20th-century roots were also in some cases liabilities. The brokerage industry gradually shifted away from a few high-net-worth clients handled through personal interactions during the late 1990s.
Since then, the focus has been on lower transaction fees and getting more retail investors. The Internet brought down barriers between investors and gave them the ability to make trades without calling a broker.
Faith in traditional financial advisors and brokers took a hit after the 2008 financial crisis, especially with younger investors.
By 2016, Scottrade reviews were critical of the company for its high minimum balance on premium accounts, antiquated online interface, and lack of commission-free ETFs.
What Did the TD Ameritrade-Scottrade Deal Mean for Customers?
Scottrade brokerage accounts automatically transferred to TD Ameritrade as part of the transition process.
As of 2022, the combined company served almost 11 million client accounts with more than $1 trillion in assets. Scottrade had a reputation for providing excellent customer service.
That was something Ameritrade President and CEO Tim Hockey hoped to continue. According to Hockey, “Scottrade is so well known for outstanding client care—a credit to the culture that Rodger Riney and thousands of Scottrade employees have built over the last 37 years. It’s on us to continue that tradition.”
The acquisition adds scale and distribution capabilities to TD Ameritrade’s investing services and education. An Ameritrade news release predicted that “the combination of TD Ameritrade’s award-winning trading technology and long-term investing solutions with Scottrade’s larger branch network is expected to enhance the investing experience for millions of investors.”
It is now possible to compare the expanded TD Ameritrade to a popular discount broker like Charles Schwab. For its supporters, TD Ameritrade's customer service more than makes up for slightly higher fees.
Scottrade customers who transitioned to TD Ameritrade were given access to:
- TD Ameritrade's platforms, including the TD Ameritrade website, the pro-level Thinkorswim platform, TD Ameritrade Mobile, and TD Ameritrade Mobile Trader
- More trading products to choose from, including complex options, futures, and foreign exchange
- More investment advice and guidance, including managed portfolios, robo-advisors, and free goal planning services
- A more extensive range of investor education offerings, including classroom learning, one-on-one coaching, paper trading, and webcasts
- Hundreds of branches across the U.S.
Before the acquisition, Scottrade had about 500 branch locations throughout the U.S. By 2019, those branches had either been converted to TD Ameritrade locations or closed. In September 2022, customers have access to Ameritrade’s 168 branch locations.
What Happened to Scottrade? FAQs
Did Scottrade Become TD Ameritrade?
After the acquisition formally closed in September 2017, all Scottrade accounts were officially moved to TD Ameritrade by February 2018.
Why Was Scottrade Sold to TD Ameritrade?
Scottrade was sold to TD Ameritrade for several reasons including concerns over rising regulatory pressure in the brokerage industry, as well health issues of founder and CEO Rodger Riney.
When Did TD Ameritrade Take Over Scottrade?
TD Ameritrade officially completed its acquisition of Scottrade on Sept. 18, 2017.
Scottrade or Ameritrade, Which One Is Better?
On Feb. 18, 2018, TD Ameritrade fully completed the conversion of Scottrade brokerage accounts to TD Ameritrade, essentially becoming a single platform.
Today, TD Ameritrade is well known for its extensive research capabilities, wide education offerings, numerous support channels, and zero-commission trades.
I Sold Shares on Scottrade, Now How Do I Get My Money?
All Scottrade accounts became fully integrated with TD Ameritrade in early 2018. In order to access any funds in your Scottrade account, simply enter your legacy Scottrade account number and legacy Scottrade password on TD Ameritrade's log-in page.
How Can I Access My Scottrade Account?
As mentioned above, in order to access your Scottrade account, enter your legacy Scottrade account number in the UserID field and your legacy Scottrade password on TD Ameritrade's log-in page.
FAQs
Why Did Scottrade Close? Scottrade Financial Services closed after TD Ameritrade bought Scottrade for $4 billion in cash and stock.
How do I access my old Scottrade account? ›
Scottrade clients have moved to TD Ameritrade
- Log in to your account.
- Enter your legacy Scottrade account number in the UserID field.
- Enter your legacy Scottrade password.
- Explore your new investing site. A customized Welcome Center will help you learn about all the new features available to you.
In September 2017, the stock brokerage division of the company was acquired by TD Ameritrade and absorbed by that company; the banking division, Scottrade Bank, was acquired by TD Bank Group and folded into their American subsidiary.
Is TD Ameritrade shutting down? ›
If you've been trading on TD Ameritrade, get ready to say goodbye. TD Ameritrade clients are being notified now their accounts are being moved into Charles Schwab (SCHW) starting next year. It's a long-awaited move after Schwab announced it would buy TD Ameritrade in 2019.
What is going to happen to TD Ameritrade? ›
As a TD Ameritrade client, you can expect your account to be moved to Charles Schwab sometime in 2023. This means you'll have to learn how to use a completely new product and platform. Now is a good time to explore your options instead of being forced to a new platform you didn't choose. M1 is one such option.
What is the new name for Scottrade? ›
Enterprise Center
| Enterprise Center (then known as Scottrade Center) pictured in 2015 |
| Enterprise Center Location in Missouri Show map of Missouri Show map of the United States Show all |
| Former names | Kiel Center (1994–2000) Savvis Center (2000–2006) Scottrade Center (2006–2018) |
| Address | 1401 Clark Avenue |
| Construction |
|---|
19 more rowsYou can use the Treasury Hunt search engine, at www.treasurydirect.gov/indiv/indiv.htm, to track down matured savings bonds or missed payments from securities. Click on "Search for Your Securities in Treasury Hunt." Simply type in your Social Security number to start.
How do I recover my Scottrade account number? ›
Recover your user ID online or call Client Services at 800-669-3900.
What is the difference between Etrade and Scottrade? ›
Although E-Trade and Scottrade offer many identical features for brokerage accounts, the primary distinction is that Scottrade is geared more toward casual and infrequent traders, while E-Trade is more robust and better-suited for highly active or more experience traders.
Who is buying out TD Ameritrade? ›
Schwab Completes Acquisition of TD Ameritrade. Accessed Mar 11, 2022.
TD Ameritrade is a member of the Securities Investor Protection Corporation ("SIPC"), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash).
Are all TD Ameritrade accounts moving to Schwab? ›
TD Ameritrade was acquired by Schwab in 2022, and they are starting to begin the process of migrating TD Ameritrade accounts over to Schwab. Schwab will notify you when your account is ready to be migrated.
What is the downside to TD Ameritrade? ›
Drawbacks include a lack of fractional shares and international trading; TD Ameritrade customers can only trade U.S. and Canadian-listed securities. Cryptocurrency: Cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin are not available to trade at TD Ameritrade.
Is TD Ameritrade turning into Schwab? ›
February 21, 2023. The Charles Schwab Corporation today successfully completed the first round of client account transitions from TD Ameritrade to the Schwab platform.
Why is TD Ameritrade selling to Charles Schwab? ›
A: This transaction is squarely in line with Schwab's long-term strategy. It allows Schwab to continue to add scale on top of its organic growth, with the addition of approximately 12 million client accounts, $1.3 trillion in client assets and $5 billion in annual revenue.
Which is better Fidelity or TD Ameritrade? ›
TD Ameritrade: Range of Offerings. TD Ameritrade offers all the usual suspects you'd expect from a large brokerage firm. While Fidelity supports trading across multiple assets, futures, options on futures, and futures on cryptocurrencies are missing from its product offerings.
Is TD Ameritrade going to merge? ›
FEBRUARY 28, 2023 - UPDATE FROM TPFG
Also, attached for reference is the TD-Schwab Transition Planning Guide that Schwab has provided us to help prepare for the integration. Transition Date: The Schwab / TD Ameritrade merger conversion is expected to take place Labor Day weekend 2023 (9/2-9/5).
Who did Scottrade get bought out by? ›
Why Did Scottrade Close? Scottrade Financial Services closed after TD Ameritrade bought Scottrade for $4 billion in cash and stock.
Who is the owner of Scottrade? ›
What happens to unclaimed investment accounts? ›
If the firm is unable to do so, and the account has remained inactive for the period of time specified by state law, the firm must report the account to the state where the account is held. The state then claims the account through a process called "escheatment," whereby the state becomes the owner of the account.
Once the necessary documents are received, a new account is typically set up for the beneficiary or estate, at which time securities registered in the name of the deceased person will be transferred.
What happens to unclaimed 401k money? ›
What happens if you lose track of some of your retirement funds—such as a 401(k) from a prior employer? The companies holding those unclaimed accounts can take the money out and transfer it to states. States hold the money as lost property until the owners claim it.
How much does it cost to open an account with Scottrade? ›
Scottrade has no minimum balance to open a retirement account like an IRA or Roth IRA. For other accounts, there is a $2,500 minimum. It's hard to have a beef with Scottrade's $7 fees, but if it's purely low-cost trades you're after, Ally Invest has a lower commission rate.
Are TD bank and TD Ameritrade the same company? ›
In 2006, Ameritrade purchased TD Waterhouse USA from TD Bank Financial Group, creating TD Ameritrade, one of the largest discount brokerages in the United States – and the largest in terms of average client trades placed each day.
Does a trading account have a number? ›
It is also known as Beneficiary ID in the case of CDSL. For unique identification, every account has a unique code which is called a Demat account number. This Demat account number is mandatory to carry out online trading efficiently.
What is better than Etrade? ›
Both companies offer commission-free stock and ETF trading, and both brokers have multiple robust platforms for traders and investors to choose from. E*TRADE stands out as the broker with more options for thematic or ESG/SRI screening, while TD Ameritrade has the edge on analytics tools and testing.
Is Fidelity better than Etrade? ›
Overall, we found E*TRADE is a good choice for active traders and investors—especially those who want access to a suite of excellent options tools. At the same time, Fidelity is better for casual investors and traders looking for low costs and access to international trading.
What is TD Ameritrade called now? ›
Here's what you need to know. Since Charles Schwab acquired TD Ameritrade, we've been working together to build something special for clients. Now that it's nearing the point where two great firms become one, we want you to know what you can expect from your upcoming Schwab experience.
Why can't i withdraw from Ameritrade? ›
Only settled funds may be withdrawn
After signing in, navigate to My Money>Withdrawals, or for a shortcut click here. If you just closed a trade and see a $0.00 Available to Withdraw, then chances are your position has not settled yet. Depending on what you are trading, settlement times can vary.
Why choose Robinhood over TD Ameritrade? ›
Each platform provides intuitive navigation that lets investors execute trades without much effort. Mobile users with straightforward trading needs may prefer Robinhood's experience, but investors needing more comprehensive tools and resources will gravitate to TD Ameritrade's platform.
The choice between the two may prove a matter of preferred trading instruments: Schwab is better equipped for futures (and international) trading, and only Fidelity offers forex.
Can I withdraw all my money from TD Ameritrade? ›
At TD Ameritrade, the only available option to withdraw money to your account is via Bank transfer. Remember, you can only withdraw funds to accounts that are in your name.
How much money do I need to keep in TD Ameritrade? ›
There is no minimum funding required to open an account. However, special promotional offers may have requirements. Electronic funding minimum is $50. Margin or option privileges on account require a minimum of $2,000.
Does TD Ameritrade have hidden fees? ›
Does TD Ameritrade have fees? TD Ameritrade does not charge a commission to trade stocks, options or ETFs. There are also no inactivity or annual fees, nor is there a fee to make partial transfers out of your account.
What happens if Schwab goes out of business? ›
SIPC offers protection of up to $500,000, including a $250,000 limit for cash, if a brokerage firm fails and covers most types of securities, such as stocks, bonds, and mutual funds.
What bank owns Schwab? ›
The company becomes "America's Largest Discount Broker," and later a subsidiary of Bank of America.
How does Charles Schwab compare to TD Ameritrade? ›
TD Ameritrade: Range of Offerings. Schwab and TD Ameritrade each offer the typical asset classes found at large brokers, including stocks, fixed income, ETFs, mutual funds, options, forex, and futures. Schwab offers a wider range of international stocks than TD Ameritrade.
Do millionaires use TD Ameritrade? ›
Answer and Explanation: Multi-millionaires and billionaires do use brokerage firms like TD Ameritrade smart mining and vanguard, but they still have other unique ways of trading.
Which is better Vanguard or TD Ameritrade? ›
Vanguard's charting capabilities are limited, and there's no technical analysis. Conversely, TD Ameritrade offers advanced charting tools that should be more than adequate for most retail investors and traders. Overall, TD Ameritrade offers more versatile account and research amenities.
What platform is better than TD Ameritrade? ›
Charles Schwab- Best for ETFs
Even still, Schwab remains the top choice when it comes to ETFs. It is due to the quality of its ETF screener and the overall quality of its comprehensive product, which includes ETF investing education and portfolio analysis tools for ordinary investors.
Do you charge trading commissions? Online listed stock and ETF trades at Schwab are commission-free. Online options trades are $0.65 per contract. Service charges apply for automated phone trades ($5) and broker-assisted trades ($25) for stocks, ETFs, and Options.
Why is Schwab account restricted from trading? ›
If you get more than 3 Free Riding Violations within a 12 month period, your Public account will be restricted for 90 days. Remember, this is a “Safe Mode” where you'll only be able to sell stock, or purchase stock with fully settled funds.
Why use Schwab over Robinhood? ›
Charles Schwab is a more traditional brokerage firm that offers multiple account types and a solid mix of traditional asset classes to invest in. Robinhood offers fewer account types, caters to beginner investors, and allows crypto trading, but is missing some more traditional investments.
Is TD Ameritrade in financial trouble? ›
Our capital structure and liquidity are strong and stable, and our clients' assets remain secure. TD AMERITRADE continues to have no exposure to the U.S. real estate market and the associated complex financial securities that are at the root of this liquidity crisis.
Is TD Ameritrade going away? ›
If you've been trading on TD Ameritrade, get ready to say goodbye. TD Ameritrade clients are being notified now their accounts are being moved into Charles Schwab (SCHW) starting next year. It's a long-awaited move after Schwab announced it would buy TD Ameritrade in 2019.
Why do people use Charles Schwab? ›
Costs. Charles Schwab's provides customers with detailed information on the costs for its collection of products and services. An added benefit is that customers have access to a wealth of educational resources, news, and research that is free, including access to third-party research.
Does TD Ameritrade have a good reputation? ›
TD Ameritrade stands out as a top rated all-around brokerages with outstanding tools and products, in-depth and comprehensive research, $0 commissions, and no account minimums. On TD Ameritrade's Secure Website.
How much does TD Ameritrade charge to transfer to Fidelity? ›
Both charge for broker-assisted trades, with TD Ameritrade charging $25 and Fidelity charging about $33. These are standard prices that may fluctuate based on specific products. Some niche costs may differ, for example, TD Ameritrade charges a $75 transfer fee to move your portfolio to another service.
Why is Vanguard better than Fidelity? ›
While Vanguard stands out with its suite of funds, the brokerage is more limited when it comes to other offerings. However, it does allow investors to trade individual stocks and bonds. Conversely, Fidelity allows clients to invest in individual stocks, bonds, ETFs, options, mutual funds and more.
Does Ameritrade delete accounts? ›
TD Ameritrade may close your account automatically if your minimum balance falls below the required amount for more than two billing cycles, depending on the type of account you have.
Log on to your TD Ameritrade trading account web site and click on My Account, then under History & Statements click on Transactions.
How do I access my e trade account? ›
Enter your E*TRADE user ID and password. Check the box next to “Use security code”. Enter the six-digit code from your VIP Access app in the Security code field. Click Log on.
What happens to my money if TD Ameritrade goes out of business? ›
Yes, in addition to SIPC, TD Ameritrade clients receive an extra level of coverage through "excess SIPC" insurance protection for securities and cash. This provides additional coverage in the event of a brokerage firm failure and funds covered by SIPC protections are exhausted.
Is TD Ameritrade clearing the same as TD Ameritrade? ›
TD Ameritrade, Inc. (“TD Ameritrade”) routes orders to its affiliate TD Ameritrade Clearing, Inc. (“TD Ameritrade Clearing”) and to third-party market centers. TD Ameritrade Clearing does not execute client orders, but rather, routes the orders it receives from TD Ameritrade to third-party market centers.
Can I get my money back from Ameritrade? ›
Who to contact to request a refund. You can call a TD Ameritrade investment professional 24/7 at 800-669-3900.
How long does TD Ameritrade keep records? ›
TD Ameritrade stores up to seven years of tax documents in your account, and you can access these materials 24 hours a day, wherever you are.
Why is my stock grey in Ameritrade? ›
Gray (or “grey”) market trading generally occurs when a stock that has been suspended from trades off the market, or when new securities are bought and sold before official trading begins.
Is TD Bank the same as TD Ameritrade? ›
In 2006, Ameritrade purchased TD Waterhouse USA from TD Bank Financial Group, creating TD Ameritrade, one of the largest discount brokerages in the United States – and the largest in terms of average client trades placed each day.
What happened to my e-trade account? ›
We'll automatically transfer your E*TRADE account(s) to Morgan Stanley on or around your transfer date. Your online experience and the way you access your account(s) will remain unchanged. However, if you do not want your E*TRADE account(s) transferred to Morgan Stanley, you have the right to object.
Which bank owns e-trade? ›
Banking products and services are provided by Morgan Stanley Private Bank, National Association, Member FDIC.
It's generally agreed that independent brokers make superior investments because they're cheaper, more flexible, have fewer conflicts of interest, and are more dynamic in terms of the user and trading experience. Banks certainly have a place in your financial plan.
Why can't I withdraw my money from TD Ameritrade? ›
Only settled funds may be withdrawn
After signing in, navigate to My Money>Withdrawals, or for a shortcut click here. If you just closed a trade and see a $0.00 Available to Withdraw, then chances are your position has not settled yet. Depending on what you are trading, settlement times can vary.
Where is my account on TD Ameritrade? ›
Find your account number using TD Ameritrade's website
Find “My Profile” in the main menu — click “Personal Information” from the dropdown options.
Did Schwab buy TD Ameritrade? ›
Since Charles Schwab acquired TD Ameritrade, we've been working together to build something special for clients. Now that it's nearing the point where two great firms become one, we want you to know what you can expect from your upcoming Schwab experience.
