Schwab-TD Ameritrade Merger – Not a Done Deal

Charles Schwab and TD Ameritrade announced on November 21, 2019 that they are in merger talks.  Here is the status and my thoughts.

First, the merger is no sure thing.  There are potential antitrust issues.  These are two large firms and I can see regulators rejecting the merger.

Second, a merger will not have any affect on your investments held at TD Ameritrade.  Assuming that a merger does take place, the biggest difference you may notice is a change in the appearance of your statements and the online platform you log into.  But  it will take years to play out.

Third, it is more likely that a merged company will rely more heavily on the technology and trading platform from TD Ameritrade since they are the recognized technology leader.

Bottom Line

  • I see the odds of a merger of the two giants at about 50-50.
  • This will have no immediate impact.
  • Any impact will be gradual.
  • It probably won’t be until mid-2020 that we have a better idea of what to expect.

Stay tuned for further updates.


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