Ameritrade redesigns website,adds trailing stops andintroduces Amerivest, a financialplanning and portfolio allocationtool for investors; TD Bank holdstalks to merge Waterhouse withE-Trade but no deal is reached.
Schwab introduces AdvisorWebCenter, an advisor-brandedwebsite development and hostingservice; also rolls out SchwabPrivate Client and Schwab AdvisorNetwork for affluent investors.
Ameritrade offers trading on
mobile devices in partnership
with Sprint; runs an ad campaign
featuring Gen X investor Stuart,
who says “Let’s light this candle.”
TD Ameritrade buys rival Datek Online
Holdings in a $1.3 billion stock deal.
Schwab drops all account service andorder-handling fees on retail accounts;rolls out its own funds on third-partyplatforms; introduces target funds; andlaunches “Talk to Chuck” ad campaign.2005
Schwab Bank goes into business.2003
Ameritrade offers trade executionguarantee of 10 seconds.
Schwab and U.S. Trust merge;company buys CyBerCorp forservicing active online traders.
Ameritrade buys In TradeCastfor $67 million and NationalDiscount Brokers for $154 million.
as smooth as possible, advisors will make the move to the next-
generation platform in waves over the coming year.”
One piece of news that drew applause from the audience
at LINC 2020 was Nally’s announcement that “for the vast
majority of accounts, you will not have to repaper” as a result
of the merger. Noting that he’s been through about eight deals
with TD Ameritrade, he explained that he never saw the firm
having to repaper because “everything gets done through
The company is “going to try and do as much of this as
we possibly can electronically, so we don’t have to stuff your
clients’ mailboxes with paper,” although it would be helpful if
advisors could get their clients to sign up for digital document
delivery, Nally stated.
At the event, Joel Bruckenstein, president of TechnologyTools for Today, said he spoke to “quite a few advisors” wholike the open-access approach of the Veo One platform and“believe that TD’s tech is superior” to that of Schwab.
Concerning Schwab’s purchase of TD Ameritrade,
Bruckenstein said during a panel discussion: “If some of the
TD technology were to go away, it would be a lot more disrup-
tive to your firms than you are admitting to yourselves.”
This is because “everything from the way they buy and sell
to the way their workflows are — they’re not the same. And so,
your back-office ninjas are going to have to learn some new
skill sets. And that’s going to be disruptive and it’s going to take
some time,” he added.
In particular, the “openness that TD has to those ‘bleeding-edge vendors’” could be negatively impacted by the Schwabdeal, he said at the conference, and that might stifle industryinnovation among startups.
As the transaction moved closer to completion in early
August, Schwab shared some details on how it plans to inte-
grate TD Ameritrade’s technology into the combined entity,
which received mixed reviews.
TD Ameritrade’s thinkorswim and thinkpipes tradingplatforms, educational resources and tools will be part ofwhat Schwab offers clients of RIAs and other investors following its acquisition of the former rival. It also plans tokeep TD Ameritrade Institutional’s portfolio rebalancingsolution iRebal.
Schwab’s plan is “definitely a win for TDA advisors, as thoseassets were truly differentiated from TDA’s superior technology offering vs. Schwab,” Tim Welsh, head of the consultancyNexus Strategy said at the time.
“However, as history has shown, nothing ever goessmoothly in a technology integration, so the disruption fromthe massive merger for advisors will be real,” Welsh added.“Will they stick around and muddle through it? That is the$26 billion question.”Meanwhile, Bruckenstein called Schwab’s plan to keepthinkpipes and thinkorswim a “good move” on Twitter. (Thethinkpipes platform features real-time charting and efficienttrading and allocation.)
But Spitzner called Schwab’s announcement “non-news
news in the sense that I can’t imagine Schwab saying anything
other than they’re going to maintain thinkorswim and other
legacy TDA solutions.” Schwab seemed to be “simply saying
they’re retaining both legacy trading platforms — thinkorswim
and Schwab’s StreetSmartEdge — and they’ll figure out how to
The consultant explained, “They’re not going to tell either
set of existing users they’re shutting down their platform.
Instead this freezes the market and kicks the can down the