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What The Ameritrade-Scottrade Deal Means For Other Online Brokers

FYI: Bedell writes that the deal means three main things. First, that a Ameritrade-E*Trade (ETFC) tie-up is less likely for the next year or year and a half; second, that the franchise value of online brokerage is greater post DOL fiduciary rules; and third, pricing competition will probably go up.
Regards,
Ted
http://blogs.barrons.com/focusonfunds/2016/10/26/what-the-ameritrade-scottrade-deal-means-for-other-online-brokers/tab/print/

Comments

  • Speculation for now.

    I'm more interested in what the deal will mean for current Scottrade customers.
  • Mark said:

    Speculation for now.

    I'm more interested in what the deal will mean for current Scottrade customers.

    Exactly. How gives an FF about other online brokers. I thought Barron's was for individuals, not telling other online brokers what it means for them.
  • From Schwab ICYMI

    Exclusive for Scottrade clients: Trade equities online, commission free for as long as you've been with Scottrade.

    We encourage our clients to ask questions that matter. And in light of the recent Scottrade acquisition announcement, now may be the perfect time to ask yourself if you should consider a new brokerage relationship.

    We're offering valued clients like yourself an exclusive offer* when you bring your Scottrade assets over to Schwab. You can receive:
    • Commission-free online equity trades at Schwab for a time equal to the length of your relationship with Scottrade

    • $6.95 online equity commissions for the remainder of the time you maintain your account at Schwab
    We consider the best relationships to be ones built on trust and transparency. All you have to do is tell us how long you've been with Scottrade, enroll in the offer, and transfer assets from Scottrade into an eligible retail brokerage account.

    At Schwab, we believe in a modern approach to wealth management that puts clients first. Our goal is to work with you on your terms to create a plan to meet your goals.
  • edited November 2016
    not that I trade equities, but Schwab is saying if I had account with Scottrade for 10 years then I don't pay commissions on trades for next 10 years? Also, how the heck do I prove I was with Scottrade for any given length of time?

    Regardless, I'm guessing Schwab is operating like Cable Company. Only NEW clients they will offer these discounts. I'm already a Schwab customer.
  • VF: At one time not to long ago
    , Chuck was paying up to get your (new) money working there !
    Derf
  • VF:
    Also, how the heck do I prove I was with Scottrade for any given length of time?
    Call or look online at your account history. In my case 12+ years. (I'm also at Schwab and others, but not TD.)

    More importantly, the welcome mat is out at Schwab for the Scottrade customer. But ...

    What will TD offer Scottrade customers who come over when TD stock trades now cost $9.99 vs. $7 at Scottrade? Even more importantly for me, what will TD offer Scottrade customers who own both institutional and non-institutional OEFs at Scottrade with $100 initial and $100 subsequent minimums in both regular and IRA accounts, pay $17 transaction fees at Scottrade vs. $49.95 at TD for a number of funds, and what, if anything, will TD do (probably nothing) about some OEFs I own at Scottrade but TD does not offer? Will other online brokerages offer "deals"?

    Others more perspicacious here can offer thoughts.
  • @openice - do you have a link to this offer from Schwab to Scottrade customers? Does the offer apply to IRA accounts as well as regular brokerage accounts? TIA
  • Hi Mark.
    According to my contact at Schwab, the offer applies to both regular and IRA accounts. Schwab, however, does not have a link to the offer, but you can call 1-800-750-9192 to learn more about it specifically. Attached to the announcement is the Terms and Conditions. FWIW I've asked that Schwab put a link on their site with additional information and transparency.
  • what if i let account transfer to Ameritrade and THEN transfer to Schwab. Like I said I doubt I will the deal anyways since I'm already also Schwab customer. But would like to know.

    in any case I think deal not going to close for a few months right?
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