The roots of Charles Schwab and TD Ameritrade go back decades to when Toronto-Dominion Bank of Canada started its U.S. operations and CharlesSchwab launched an investor newsletter.
The coming together of the two firms, though, seemed to have been set in motion inlate September 2019, when Interactive Brokers moved to drop trading commissions in thehopes of grabbing market share from bigger rivals that quickly followed suit, and fromnew rivals like Robinhood that had cut them years ago.
A look back at the brokerage industry’s history — as we show in our detailed timeline ofthe megadeal — makes it clear that mergers and acquisitions have been a critical part of itsdevelopment, along with many other factors. Now, the heavy lifting begins for Schwab, aswell as for other players in the RIA space — prompting the question: What does the dealmean for RIAs and the financial services business overall?
BY JANET LEVAUX