Charles Schwab and TD Ameritrade are hooking up. So what does a planned marriage between two of the world’s biggest brokerage giants mean for the average Joe investor?
The bottom line: There will be one less choice for mom and pop investors looking for a discount brokerage, but that could be a good thing in the long run.
There’s a risk that Charles Schwab and TD Ameritrade could lose customers since they would potentially need to move their assets into a new firm, said Jennifer Butler, director of asset management and brokerage research at competitive intelligence firm Corporate Insight. Charles Schwab and TD Ameritrade are among two of the biggest RIA custodians in the industry, which potentially means fewer choices for advisers, according to Butler.