Schwab’s web trading goes live; SchwabAdvisorSource referral service launched.
TD Bank buys Waterhouse Securitiesof New York; first National LINCconference for RIAs is held.
Rival Interactive Brokers incorporates,led by Thomas Peterffy and usingTimber Hill electronic network andtrade execution services.
Schwab introduces money market funds.
Ameritrade runs first ad campaign,which highlights $8 flat-rate tradingcommission; TD Waterhouse buysdiscount brokerage Kennedy Cabot& Co. and Jack White & Co.
TD Bank/Green Line buysMarathon Brokerage of Canada.
Schwab buys 401(k) plan recordkeeperthe Hampton Company, founded byWalt Bettinger; activates first website( Schwab.com).
Ameritrade buys K. Aufhauser
& Co., the first firm to offeronline trading (in 1994).
Schwab acquires market maker Mayer
& Schweitzer to execute client orders;hosts first yearly national advisorsconference (later renamed IMPACT);debuts first network TV ad campaign.
Meanwhile, rival E-Trade is founded.
portfolio management system for advisors using its custodyservices, the firm says.
“We are building a more modern service model, one thatwill adapt to the needs of the firms we serve, regardless of theirsize,” according to Clark.
As Kitces pointed out in a tweet at the time of Bradley’s
hiring, “Of course, there are a LOT of smaller RIAs at TD
Ameritrade today specifically because they got rejected by
Schwab’s AUM minimums in the past. Which left a bad taste
in a lot of mouths. That won’t instantly vanish just because
Schwab says, ‘Ok, NOW we’ll work with you!’”
He added: “The bottom line, though, is that Schwab’s hire
of @TomBradley_USA is a big deal, not just for his experience
to build/scale w/ <$100M RIAs, but also strategically to soothe
the nerves of TDA RIAs. What a monster win for Schwab. Now
we just have to wait to see execution? :)”
Looking more broadly at the situation for RIAs, “I see two
camps forming,” said Gavin Spitzner, president of Wealth
Consulting Partners, after the deal’s announcement. “One,
for those now with TD Ameritrade expressly not to be with
Schwab, will use this as a reason to migrate away to an estab-
lished firm or potentially an upstart like Altruist.”
The second camp could see the combination as having extra
resources to invest in innovation and “doesn’t care about the
competitive angle of their custodian competing alongside
them in the wealth business and might grumble but will stay,”
Spitzner explained. “Most interesting will be the ripple effects
and who acquires or merges with who coming out of this.”
Culturally and with respect to technology, the consultant
points out, there are differences between the two firms:
“I doubt their systems are fully compatible. That will be
While TD’s Veo has over 170 integrations with third parties,
he said, “Schwab only has a fraction of that number. What
does that mean for third-party vendors? Some will likely be
TD Ameritrade’s culture and technology have been impres-
sive to advisors, according to Henschen. “What will happen to
this technology? Will Schwab integrate some of it [for its advi-
sors] and keep it the same for those [coming over] from TD?”
he asked late last year.
That’s been “the” question on the minds of many advisorssince last November. They got some clarity in January whenTD Ameritrade Institutional President Tom Nally said integration of the two companies’ technology and operations isexpected to take two to three years after the transaction closes.
“This is a large deal and combining these two firms is goingto take time — especially if you want to do it right, and that’swhat we’re focused on,” Nally told more than 3,200 RIAsand others on Jan. 30 during TD Ameritrade’s 24th-annualNational LINC 2020 conference in Orlando, Florida. (LINChas been cancelled for 2021.)
“We’re playing the long game,” he said, adding: “We’re not
looking to put quick wins up on the board. We’re looking to be
very thoughtful and very methodical about how we do this to
bring both of these organizations together.”
Then (like now), “We don’t know” the fate of TD’s Veo One
next-generation advisor platform after the merger is complet-
ed, Nally conceded. The legacy Veo platform, though, is about
15 years old and does “need to be retired,” Nally said.
The firm told advisors that it aimed to complete the processof upgrading all firms to Veo One and “to make the transition