The financial world saw a significant shift with Charles Schwab's acquisition of TD Ameritrade. For many long-standing TD Ameritrade clients, this means transitioning their accounts to Schwab. While Schwab aimed to make this process as seamless as possible, it's natural to have questions and want a clear, step-by-step guide. This lengthy post will walk you through everything you need to know about creating (or rather, migrating) your Charles Schwab account from TD Ameritrade.
Ready to make the move? Let's get started!
This guide is designed to help you navigate the transition of your TD Ameritrade account to Charles Schwab. While Schwab has largely handled the heavy lifting behind the scenes, understanding the process and knowing what to expect will make your experience much smoother.
Step 1: Understanding the Transition – What's Happening and Why?
Before diving into the specifics of account access, it's crucial to understand the context of this migration. Charles Schwab acquired TD Ameritrade, and as a result, all TD Ameritrade accounts are being transitioned to Schwab's platform. This isn't about you actively "creating a new account" from scratch in the traditional sense; rather, it's about your existing TD Ameritrade account being moved and integrated into the Schwab ecosystem.
A. The Big Picture: Why the Merger?
The merger was driven by the desire to combine the strengths of both companies. Schwab aimed to enhance its offerings by integrating TD Ameritrade's robust trading platforms (like thinkorswim) and extensive client base, while providing TD Ameritrade clients with Schwab's broad range of wealth management and investing solutions, commitment to low costs, and widespread branch network.
B. What Does This Mean for Your Account?
- Automatic Transfer: Your existing TD Ameritrade brokerage account, including all your assets and holdings (stocks, ETFs, mutual funds, etc.), has been or will be automatically and securely transitioned to Schwab. You generally do not need to initiate a transfer request.
- New Account Number: While your investments move, you will be assigned a new Schwab account number. This is important for future access and for updating any direct deposits or recurring payments.
- Access to New Platforms: You will gain access to Schwab's various platforms, including Schwab.com, the Schwab Mobile app, and importantly, the continued use of the popular thinkorswim platform (now "Schwab Trading Powered by Ameritrade").
Step 2: Key Communications and Timeline – Don't Miss a Beat!
Schwab has been communicating with TD Ameritrade clients in phases. Staying informed about these communications is vital.
A. What to Look For:
- Emails from Schwab: You would have received or will receive emails from Schwab informing you about your specific transition date, what to expect, and prompting you to create your new Schwab login credentials.
- Physical Mail: Expect to receive physical letters from Schwab, especially one containing your new Schwab account number. Keep this document in a safe place.
- Key Dates: While most major migrations have occurred, it's important to remember that TD Ameritrade systems and portals are now largely defunct. Your access will be solely through Schwab.
B. Proactive Steps:
- Check Your Inbox (and Spam!): Ensure that emails from Charles Schwab are not going to your spam or junk folders.
- Confirm Your Contact Information: If you haven't already, ensure your contact information (email, mailing address) is up-to-date with Schwab (or was with TD Ameritrade prior to the transition).
Step 3: Setting Up Your Charles Schwab Login ID and Password
This is arguably the most crucial step for accessing your transitioned account. If you were a TD Ameritrade client and are new to Schwab, you'll need to create new login credentials. If you were already a Schwab client with an existing account, your existing Schwab login should grant you access to your newly migrated TD Ameritrade accounts.
A. For First-Time Schwab Users (from TD Ameritrade):
- Visit Schwab's Welcome Page: Go to the official Schwab website (e.g.,
schwab.com/welcome-to-schwaborschwab.com/login). Look for the section specifically for TD Ameritrade clients. - Initiate New User Setup: Look for an option like "Set up your Schwab Login ID and password" or "New User."
- Provide Identification: You will likely need to provide information to verify your identity. This could include:
- Your Social Security Number (SSN)
- Your date of birth
- Your previous TD Ameritrade account number (if prompted)
- Potentially other personal verification details.
- Follow the on-screen prompts carefully.
- Create Your Login ID: Choose a unique Login ID. Schwab may offer you the option to use your previous TD Ameritrade User ID if it meets Schwab's criteria. Consider if retaining your old ID is secure or if a new one is better.
- Set a Strong Password: Create a robust password that combines uppercase and lowercase letters, numbers, and symbols. Avoid easily guessable information.
- Establish Security Questions: Select and answer security questions that will help you regain access if you forget your password. Choose answers you'll remember but are not easily discoverable by others.
- Agree to Terms and Conditions: Read through the online agreements and disclosures.
- Confirmation: Once complete, you should receive a confirmation that your Schwab login has been successfully created.
B. For Existing Schwab Clients:
- You typically do not need to create new credentials. Your existing Schwab Login ID and password should now grant you access to your newly migrated TD Ameritrade accounts.
- It's a good idea to log in and confirm that all your accounts are visible. If not, contact Schwab client service.
Step 4: Exploring Your New Schwab Account and Platforms
Once you've successfully logged in, take some time to familiarize yourself with the Schwab environment.
A. Schwab.com: Your Main Hub
- Account Summary: Check your account summary to ensure all your transitioned accounts and holdings are accurately displayed. Your TD Ameritrade history will be shown under your new Schwab account number.
- Statements & Tax Forms: Locate your statements and tax forms. Schwab aims to provide up to 10 years of historical tax documents, brokerage statements, and trade confirmations.
- History: Review your transaction history. You should see up to four years of transaction history on Schwab.com.
- Move Money: Explore the options for transferring funds, setting up direct deposits, and managing payments.
B. thinkorswim® (now "Schwab Trading Powered by Ameritrade™"):
- If you were a thinkorswim user, you'll still have access to the platform.
- Desktop Application: If you use the thinkorswim desktop application, you may need to update it or download a Schwab-branded version.
- Mobile App: Download the "thinkorswim Mobile" app from your app store.
- Web Platform: Access thinkorswim web through
trade.thinkorswim.com. - Your layouts, watchlists, and other customizations should largely carry over. However, some users reported needing to re-save scans. It's a good practice to back up any custom scans or workspace settings before your scheduled transition if you are able to.
C. Schwab Mobile App:
- Download the official "Schwab Mobile" app for managing all your accounts on the go. This app provides a convenient summary view and access to account information, market insights, trading, and documents.
Step 5: Updating Essential Information and Services
While Schwab has automated much of the transfer, there are a few key areas you might need to adjust manually.
A. Direct Deposits and ACH Instructions:
- Crucial Step: If you have any direct deposits (e.g., salary) or recurring ACH payments set up directly with your bank or other third parties that used your old TD Ameritrade account number, you must update these with your new Schwab account information.
- Instructions set up directly within TD Ameritrade generally transferred over. However, external setups require your action. Your new Schwab account numbers are key here.
B. Third-Party Integrations:
- If you use budgeting software (e.g., Quicken, Mint, Empower Personal Dashboard) or other financial tools that were linked to your TD Ameritrade account, you will need to update those connections to your new Charles Schwab account.
- This usually involves deactivating the old TD Ameritrade connection and re-adding Charles Schwab as a new financial institution, then linking your accounts using your new Schwab login.
C. Tax Documents:
- For the year of transition, you may receive two sets of 1099 forms – one from TD Ameritrade (for the period leading up to the transition) and one from Schwab (for the period after).
- Ensure you have access to both for tax filing purposes. Schwab.com will house your historical TD Ameritrade tax documents.
D. Review Account Features:
- Take some time to explore the features available on Schwab.com and the mobile apps. This includes research tools, planning resources, and different investment products.
- If you had specific features like margin enabled on your TD Ameritrade account, confirm they are active on your Schwab account if you intend to use them. Margin is generally a default feature for new brokerage accounts, but confirm the settings.
Step 6: Seeking Support
Even with a comprehensive guide, questions or issues may arise. Don't hesitate to reach out for assistance.
A. Schwab Client Service:
- Phone: Charles Schwab provides 24/7 client support. The main number is typically 800-435-4000 (within the U.S.) or +1-415-667-8400 (outside the U.S.).
- Chat: Utilize the online chat feature on Schwab.com for quick answers.
- Local Branches: If you prefer in-person assistance, locate a Schwab branch near you.
B. Thinkorswim Trade Desk:
- For platform-specific questions, trading strategies, or technical support related to thinkorswim, you can contact the Schwab Trade Desk.
Frequently Asked Questions (FAQs)
Here are 10 related FAQ questions that start with 'How to' with their quick answers:
How to access my account after the TD Ameritrade to Schwab migration?
You will access your account directly through Schwab.com or the Schwab Mobile app using the new login credentials you created or your existing Schwab login if you were already a Schwab client. TD Ameritrade logins no longer work for migrated accounts.
How to find my new Schwab account number?
Your new Schwab account number was provided in the key information packet mailed to you by Schwab. You can also find it by logging into Schwab.com and viewing your account summary.
How to update my direct deposits and recurring payments?
If your direct deposits or recurring payments were set up externally (e.g., directly with your employer or bank), you must update them with your new Schwab account number and routing information. If they were set up within TD Ameritrade, they generally transferred automatically.
How to use thinkorswim after the transition?
Thinkorswim is now "Schwab Trading Powered by Ameritrade™." You can continue using the desktop, web, and mobile versions. You may need to download a new Schwab-branded desktop application or update your existing one, and download the "thinkorswim Mobile" app. Your existing layouts and settings should largely transfer.
How to view my historical TD Ameritrade statements and tax documents?
Up to 10 years of your historical TD Ameritrade tax documents, brokerage statements, and trade confirmations are available on Schwab.com under the "Statements & Tax Forms" section.
How to link my Schwab account to third-party financial software (e.g., Quicken, Mint)?
You will need to disconnect your old TD Ameritrade account from these platforms and then add Charles Schwab as a new financial institution, linking your accounts using your new Schwab login credentials.
How to know if my account has been fully transitioned?
Schwab sent out an account verification letter or email confirming that your account has been successfully moved. You can also log into Schwab.com to confirm all your accounts and holdings are visible.
How to transfer money to or from my new Schwab account?
You can transfer funds using Electronic Funds Transfer (EFT) via Schwab MoneyLink® on Schwab.com, wire transfers, or by depositing checks. Full funding instructions are available after you log in.
How to get support if I have questions during or after the transition?
You can contact Charles Schwab client service 24/7 by phone (800-435-4000), through online chat on Schwab.com, or by visiting a local Schwab branch. For thinkorswim specific questions, contact the Schwab Trade Desk.
How to ensure my tax information is accurate after the merger?
For the transition year, you may receive separate 1099 forms from both TD Ameritrade (for activity before the transition) and Schwab (for activity after). It's crucial to obtain both for accurate tax filing. You can access them on Schwab.com.
