It is still less clear why TD Ameritrade made that decision but TDA seem to have updated Charles Schwab, which completed the acquisition of TD Ameritrade in 2020, is not allowed to operate in Singapore and hence TD Ameritrade will cease their Singapore regulations. Thus, they can only serve the A.I. investors.
This likely means that existing broker platforms are less affected.
Easiest Method to Move Your TD Ameritrade Stock Positions to Interactive Brokers
Interactive Brokers allows you to trade different securities, across different markets, is financially strong, has been operating for a long time, and able to let you do the trades you do on TD Ameritrade.
For more information about Interactive Brokers, you can check out the set of articles at the end of this article.
What to do to still make use of TD Ameritrade’s Features
The reason why many options trades teach their students on TD Ameritrade is due to some of the options features, such as their screeners, indicators and options chains.
If you would like to continue to use those features, leave a share of a particular stock and have $0 cash holdings in your TD Ameritrade account.
In that way, you will not be charged a recurring US$50 fee for using the platform and can continue to use the features.
This means you should not transfer all your shares away.
Transfer Your Shares Using the Automated Client Account Transfer System (ACAT) to Interactive Brokers
The most prevalent way to transfer out your shares is to initiate an ACAT transfer from a compliant broker.
An ACAT transfer will typically incur charges but TD Ameritrade will waive the transfer or wire fees up to 31st December 2023 if you transfer the entire account.
This runs counterintuitive with the advice in the previous section but it means that if you wish to use those features on TD Ameritrade, you might need to incur this transfer fee.
Then you can initiate an ACAT transfer on Interactive Brokers. More information on the transfer process can be found here.
During the transfer instructions, you will face a choice of where is your TD account, whether it is in the US or other regions, select US for ACATS.
My Comprehensive Interactive Brokers How-to Guides
Interactive Brokers is a great low-cost, financially strong brokerage platform that can be the standard broker for holding your long-term investments. You can access 150 global exchanges, including exchanges such as Singapore, the US, Hong Kong, London, European and Canada.
You will enjoy cheap commissions and zero minimum recurring platform fees or maintenance fees. Convert your funds to different currencies at near-spot rates, paying a flat US$2 fee.
To get started or become familiar with Interactive Brokers, check out my past articles on how to invest with Interactive Brokers. I hope the guides make your life and investing experience easier and brighter.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.