The Charles Schwab Corporation to Acquire TD Ameritrade

Usability

You can open a Vanguard account online, but there is a several-day wait before you can log in. We found it's easier to open and fund an account at TD Ameritrade. You can do so either through its website or mobile app, although it can be challenging to pick the right account type due to the range of offerings. With either broker, you need to sign additional documents—and wait a bit longer—if you want to trade options or access margin.

Vanguard and TD Ameritrade offer a good variety of educational content, including articles, videos, webinars, and a glossary. Vanguard's website has (finally) been updated and is now more user-friendly and modern-looking. However, there's still work to be done to make the website less complicated, and you can't get very far unless you log into your account. TD Ameritrade's website is fresh, well-organized, and easy to navigate.

Overall, we found Vanguard works well for long-term investors—especially those who want access to professional advice and some of the lowest-cost funds in the industry. At the same time, TD Ameritrade is a better fit for investors and traders of all experience levels who want a more robust and customizable trading experience.

What is a good faith funding violation?

Good faith violations occur when clients buy and sell securities before paying for the initial purchases in full with settled funds. Only cash or proceeds from a sale are considered settled funds. Here’s an example of a good-faith violation:

  • On Monday, Janet holds $10,000 worth of XYZ.
  • On Tuesday, Janet sells her entire XYZ position for $10,500, which will settle Thursday.
  • Wednesday morning, Janet buys $10,500 of FAHN on good faith that XYZ’s sale will settle.
  • Wednesday afternoon, Janet sells FAHN for $11,000, making a $500 profit. However, FAHN’s original purchase wasn’t fully paid for because XYZ’s sale hadn’t yet settled.

If this happens three times in a 12-month period, a client will be restricted to trading with settled cash for 90 days.

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My account is now flagged as a pattern day trading account and its value is less than $25,000 what can I do?

We have multiple potential solutions to help with this:

  • We can assist with making a deposit/transfer to the account to bring its value to at least the $25,000 minimum. 
  • Cash accounts are not subject to pattern day trading rules.  We can assist you with converting a margin account to a cash account, but the cash account would be subject to settlement on each trade placed. (See “In my cash account, when can I use my funds again to trade?” above).
  • We can review your account to see if a day trade flag removal is available on your account.

Portfolio Analysis

Vanguard and TDA both provide access to buying power and margin information, plus unrealized and realized gains. You can access tax reports (capital gains) and see your internal rate of return (IRR) too. Overall, the portfolio analysis offerings at the two brokers are too similar to pick a clear winner.

COVID-19 Paycheck Protection Program (PPP)

COVID-19 Paycheck Protection Program (PPP)

Can I apply for the Paycheck Protection Program (PPP) through Charles Schwab Bank?

No. Charles Schwab Bank does not issue Small Business Administration (SBA)-backed loans and does not participate in PPP. 

Where can I learn more about PPP?

To learn more about PPP, please visit .

What other options are available to me from Charles Schwab and Charles Schwab Bank?

If appropriate for your situation, you could consider borrowing against your assets by using a margin loan from Charles Schwab & Co., Inc. or a Pledged Asset Line (PAL) from Charles Schwab Bank. Alternatively, you could also consider borrowing against your home with either a cash-out refinance mortgage, or Home Equity Line of Credit (HELOC), through Charles Schwab Bank’s home loans provider, Quicken Loans. If you would like to discuss these borrowing solutions in more detail, please contact your Regional Banking Manager at 800-497-7470.Please note that entering into a Pledged Asset Line and pledging securities as collateral involve a high degree of risk; make sure you understand the risks before you apply.

IRA Contributions

IRA Contributions

Can I make contributions to my Traditional IRA if I am over the age of 70.5?

Yes, one of the provisions of the SECURE Act was that you can now make contributions to your Traditional IRA at any age, as long as you have earned income. If you are over age 70.5 and would like to make a contribution to your Traditional IRA, please call 800-435-4000 or deposit a check. Please note that if you are over age 70.5, you can only make contributions for the 2020 tax year, not 2019.

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Why can’t I withdraw the money I just deposited (anti-money laundering rules)?

Due to anti-money laundering rules, newly deposited funds can only be withdrawn 5 business days after posting to the account. For example, if you made a deposit request on Monday before our cutoff and the funds landed in your account the next day (Tuesday), then those funds can be withdrawn next Tuesday, or five business days later.

Additionally, funds must remain in your account for at least 60-days if you plan on withdrawing funds from your tastyworks account a bank account where the funds did not originate.

We’re invested in corporate citizenship

We’re investing our resources where we can make the most difference in areas that align with our business.

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We’re invested in corporate citizenship

Now introducing commission-free trading

Applies to US exchange listed stocks, ETFs, and options. A USD$0.70 per contract fee applies for options trades. A USD$7.44 commission applies to trades of over-the-counter (OTC) stocks which includes stocks not listed on a U.S. exchange.

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