The Charles Schwab Corporation: What you need to know.

Steve Lear |

Affiance Financial first learned that the Charles Schwab Corporation acquired TD Ameritrade more than three years ago. At the time, it seemed like a wildly far-off future. But, we knew the time would eventually come when our clients would need to move to the new brokerage firm.

Early last year, the timeline started to crystalize – Labor Day weekend, 2023, became the clear front-runner as the likely transition date. Last summer we went to work putting together a transition plan. Since then, we’ve taken advantage of the opportunities we’ve been given to familiarize ourselves with the company, train on the new platform, test our technology integrations, and revise our internal processes so that we are ready to hit the ground running when the Labor Day-weekend cutover arrives.

While there will almost certainly be some unexpected bumps in the road, we are confident in our ability to overcome them. And, we believe that going forward, we will be able to deliver the same high level of service on the Schwab platform that you have come to expect from Affiance Financial. Read on for more information about the transition.

Timing

  • November 2019 – Charles Schwab Corporation acquired TD Ameritrade
  • October 2020 – The acquisition received regulatory approval
  • September 2021 – Schwab began engaging Affiance Financial about the transition of client accounts from TD Ameritrade to Schwab
  • July 2022 – Affiance Financial began their internal preparation for the transition
  • June 2023 – Affiance Financial, TD Ameritrade, and Charles Schwab began communicating with clients about the transition
  • Friday, September 1, 2023 at 7:30 p.m. CT – Access to your TD Ameritrade account will no longer be available. You will not be able to access or withdraw cash or view your accounts through your TD AdvisorClient.com client portal.
  • Labor Day weekend – Your TD Ameritrade account and assets (including cash and securities positions) will automatically transition to Charles Schwab
  • Tuesday, September 5, 2023 at 4:00 a.m. CT – You will be able to access and withdraw cash from your Charles Schwab account and view your account on the Schwab Alliance client portal

Account Transitions

  • Your TD Ameritrade account and assets (including cash and securities positions) will automatically and securely transition to Charles Schwab over Labor Day weekend. On or about Tuesday, September 5, 2023, Schwab will become the custodian of your account.

Necessary Action

  • No action is necessary in most cases to transition accounts from TD Ameritrade to Schwab. The change is considered a negative consent transaction, and is being completed without requiring any paperwork.

Your Affiance Financial Advisor

  • The transition to Schwab will not affect your relationship with your Affiance Financial Advisor. We will have the same authorizations on your Schwab account as we did at TD Ameritrade. Both TD Ameritrade and Schwab offer similar services, including custody of securities, trade execution, and settlement of transactions. Today, we believe Schwab executes trades effectively and provides best execution for our clients, but we will continue to undertake an annual review to ensure that Schwab remains the most favorable brokerage firm. We have not received any financial compensation from Schwab nor do we have any soft-dollar arrangements with that company.

Account Numbers

  • Your account(s) will be assigned new account numbers when they transition to Schwab. Your new account information will be communicated by Schwab as part of the transition process. You can also access your new account information by logging into your Affiance Financial client portal (powered by Black Diamond) account or the Schwab Alliance client portal after the transition is complete. 
  • Please note: If you established a link from a third-party institution to your TD Ameritrade account, you will need to update the link with your new Schwab account number. Links established by your Affiance Financial advisor will transition automatically with your account. Please reach out to your advisor team if you have any questions about this.

More Information

  • For more information, please reach out to your Affiance Financial advisor. You can also visit the Client Information Hub at welcome.schwab.com; or call Charles Schwab at 800-431-3500. And, watch for additional communication from Affiance Financial, TD Ameritrade, and Charles Schwab.

How-To Video

  • Watch the video below for step-by-step instructions on how to set up your Schwab Alliance account.

Please note, creating and logging in to a Schwab Alliance client portal account is not a requirement. If you choose not to complete this step, your accounts will still move to Schwab over Labor Day Weekend, and you will automatically receive paper communication.

This video is for general educational purposes only and should not be considered an individual recommendation. All images are for illustrative purposes only and may be abbreviated. Schwab Advisor Services serves independent investment advisers and includes custody, trading, and support services of Schwab. Affiance Financial is not owned by or affiliated with Schwab.

Affiance Financial is registered as an investment adviser with the SEC and only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.

All investment strategies have the potential for profit or loss. Please remember to contact Affiance Financial right away if there are any changes in your personal or financial situation or your investment objectives.