What Happened to Scottrade After the TD Ameritrade Deal

Scottrade was acquired by TD Ameritrade in 2017 for $4 billion.

The deal was announced in April 2017 and was completed in July of the same year.

TD Ameritrade absorbed Scottrade's operations, and the Scottrade brand was eventually phased out.

This process took several years to complete.

The transition was largely seamless for existing Scottrade customers, who were able to continue using the same platforms and services with their accounts now being managed by TD Ameritrade.

The TD Ameritrade deal was a significant event in the world of online trading. Scottrade was acquired by TD Ameritrade in 2017, with the acquisition officially closing on September 18th of that year.

TD Ameritrade's acquisition of Scottrade brought together two companies with a strong focus on customer service. As part of the transition, Scottrade accounts were automatically transferred to TD Ameritrade, with clients gaining access to TD Ameritrade's platforms, including the TD Ameritrade website and the pro-level Thinkorswim platform.

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Scottrade clients were given access to a wide range of trading products, including complex options, futures, and foreign exchange. They also gained access to more investment advice and guidance, including managed portfolios, robo-advisors, and free goal-planning services.

The acquisition added scale and distribution capabilities to TD Ameritrade's investing services and education. TD Ameritrade's customer service was seen as a major advantage, with Scottrade's reputation for providing excellent customer service being a key factor in the acquisition.

As part of the transition, Scottrade clients were given access to TD Ameritrade's extensive range of investor education offerings, including classroom learning, one-on-one coaching, paper trading, and webcasts. They also gained access to hundreds of branches across the U.S.

Here's a list of some of the benefits that Scottrade clients gained from the acquisition:

The acquisition was a significant move for TD Ameritrade, with the company reporting that it had 275 branches in 2019. By 2024, Charles Schwab, which acquired TD Ameritrade in 2020, reported that it had 380 branches in 48 states.

TD Ameritrade acquired Scottrade in 2017, and as of 2019, TD Ameritrade served about 12 million client accounts with $1.3 trillion in assets.

The acquisition added scale and distribution capabilities to TD Ameritrade's investing services and education. The combination of TD Ameritrade's award-winning trading technology and long-term investing solutions with Scottrade's larger branch network is expected to enhance the investing experience for millions of investors.

Scottrade customers who transitioned to TD Ameritrade were given access to TD Ameritrade's platforms, including the TD Ameritrade website, the pro-level Thinkorswim platform, TD Ameritrade Mobile, and TD Ameritrade Mobile Trader.

TD Ameritrade's customer service more than made up for slightly higher fees, according to its supporters. Scottrade's reputation for providing excellent customer service was something former Ameritrade President and CEO Tim Hockey hoped to continue.

TD Ameritrade offered its customers hundreds of branches across the U.S., a more extensive range of investor education offerings, including classroom learning, one-on-one coaching, paper trading, and webcasts, and more investment advice and guidance, including managed portfolios, robo-advisors, and free goal-planning services.

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Here are some of the key benefits of the TD Ameritrade conversion:

In 2024, Charles Schwab, which acquired TD Ameritrade in 2020, reported that it had 380 branches in 48 states.

Scottrade has faced criticism for its fees, which can be high for certain services.

Some customers have complained about the broker's trading platform, citing issues with navigation and functionality.

Scottrade has made efforts to address customer concerns, including the introduction of mobile trading apps to improve accessibility.

However, some customers have reported difficulties with customer support, including long wait times and unhelpful representatives.

The brokerage industry was facing significant difficulties in the time leading up to Scottrade's decision to sell.

Regulators were demanding innovative technology and new federal rules requiring firms to act in the best interest of clients when advising on retirement accounts.

Securities analyst Michael Flanagan noted that Wall Street was being "assaulted by regulators", leading to never-ending compliance issues.

Regulators were spending more money on technology and legal issues, making it a challenging time for the industry.

Scottrade wasn't the only online brokerage to face difficulties, as Ally Financial acquired TradeKing Group for $275 million in 2016.

E-Trade Financial Corporation also acquired OptionsHouse's parent company Aperture New Holdings for $725 million in cash during the same year.

The challenges facing the industry were not limited to regulatory issues, as faith in traditional financial advisors and brokers had been eroded by the 2008 financial crisis.

Younger investors were particularly skeptical of traditional financial advisors, making it harder for firms to attract new customers.

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If you're missing an account, it's likely because it was closed as part of the Scottrade acquisition. Scottrade Bank accounts were closed as of February 17, 2018.

You can check if your account was closed by looking at the transition details from the acquisition. Bank account balances were automatically deposited in the customers' Scottrade brokerage accounts or sent as checks to close out the accounts.

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If you're still having trouble finding your account, you might want to try logging in with your old Scottrade account number as your user ID and your old Scottrade password. Scottrade customers were able to log into their new TD Ameritrade accounts by using their existing Scottrade account numbers as the user IDs with their old Scottrade passwords.

Keep in mind that the integration between TD Ameritrade and Schwab was completed in 2024, so if your account was active at that time, it should have been transferred over to Schwab. Schwab bought TD Ameritrade in 2020, with the integration between the two companies completed in 2024, and active accounts transferred over to Schwab.

Scottrade has a history of making misrepresentations to clients. In 2008, the company was charged by the SEC for making fraudulent misrepresentations about Nasdaq pre-open orders.

The company was found to be in violation of the Securities Exchange Act of 1934. The SEC imposed a censure on Scottrade as a result of this misconduct.

Scottrade agreed to stop committing or causing any further violations of the act. The company paid a civil penalty of $950,000 as part of this agreement.

Scottrade reviews often praised the company's customer service, with 500 branch locations and a long history dating back to 1980 building strong relationships with clients.

The company's online experience, however, was not a strength, with reviews pointing out its limitations.

Scottrade's focus on high-net-worth clients through personal interactions was a thing of the past by the late 1990s, as the industry shifted towards lower transaction fees and attracting more retail investors.

By 2016, Scottrade reviews were critical of the company's high minimum balance on premium accounts, its outdated online interface, and lack of commission-free ETFs.

Reviews of Scottrade were overwhelmingly positive, with many sites praising its customer service. Scottrade had a strong reputation for building relationships with clients since its founding in 1980.

Its 500 branch locations allowed for personal interactions, which was a key factor in its customer service reputation. This was a holdover from the pre-Internet era, when online trading wasn't as prevalent.

However, Scottrade's online experience was not as strong, with reviews pointing out that it wasn't a company strength. The company's focus on lower transaction fees and retail investors also led to some criticism.

Scottrade's high minimum balance on premium accounts was a major drawback, according to reviews from 2016. Its antiquated online interface was also a liability at that time.

Scottrade was a pioneering online brokerage firm that served over three million accounts.

The company was founded by Rodger O. Riney in 1980 and initially operated as a traditional brokerage.

It launched its website in 1996 and was one of the first brokerages to offer online trading.

Scottrade's assets reached over $24 billion before it closed its doors.

TD Ameritrade acquired Scottrade in 2017 and transferred all active accounts to its platform.

This acquisition marked the end of Scottrade's independent operations.

In 2020, TD Ameritrade was bought by Schwab, further consolidating the online brokerage landscape.

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