Do you currently have an active TD Ameritrade account? Then this news will definitely impact you!
If you haven’t gotten up to speed, TD Ameritrade has basically announced that they will be closing services for all Singapore retail clients.
I have been using TD Ameritrade for several years, and it has been a reliable broker, even offering zero transaction fees on buying stocks, so it’s definitely sad to see this is the decision of the new management.
In light of the news, there are several steps that you may consider taking especially if you have cash or securities currently in your TD Ameritrade account!
Why Is TD Ameritrade Closing Accounts?
TD Ameritrade was acquired by Charles Schwab in 2020 and the transition period is nearing completion. This means new changes for existing customers as a large number of TD Ameritrade accounts have already been migrated starting 2023.
They have also announced that account capabilities will become restricted for retail investors in Singapore come December 2023, and service will discontinue after that. So it’s important that you act quickly to avoid any account impacts before the deadline.
🚨 In fact it’s best to transfer all your assets before 27 October 2023 because TD Ameritrade will be charging an account maintenance fee of $50 USD per month for accounts after the date.
Who Does This Change Affect?
Basically TD Ameritrade Singapore has decided to only focus on Accredited Investors in Singapore. This means that all retail investors will have their service discontinued and should take steps to swiftly transfer their assets to other providers.
Are You an Accredited Investor? – Accredited Investor Threshold
If you meet one of these points listed below, you may still be eligible to apply as an Accredited Investor and continue using TD Ameritrade services, inclulding the thinkorswim trading platform.
1. Personal Income – in excess of S$300,000 per year in the last 12 months (or its equivalent in foreign currency)
2. Net Personal Assets – in excess of S$2,000,000 of which the net value of your primary place of residence can only contribute up to S$1 million (or its equivalent in foreign currency)
3. Net Financial Assets – in excess of S$1,000,000 (or its equivalent in foreign currency)
If you believe that you meet any of these criteria, you may visit the TD accredited investor page to apply for it.
Timeline for TD Ameritrade Account Closing
I would suggest to take the appropriate steps immediately so that you do not face the possibility of additional charges or complications in the account closing.
| 1 October 2023 Requests to transfer in assets from another provider will not be received and any in progress transfers may be rejected. |
| 27 October 2023 All non-Accredited Investor accounts will be charged a monthly account maintenance fee of USD $50. Charges will be based on cash balances held at the close of business U.S. time on the 27th day or last preceding business day of the month. Accounts with cash balances less than USD$50 will only be charged an amount to reduce their cash balance to $0 (zero). |
| 1 December 2023 At close of U.S. markets, non-Accredited Investor accounts will be restricted. We will no longer accept new trade orders to establish positions or deposits on any remaining accounts. However, you may still place liquidating orders to close positions. |
| 4 December 2023 Starting on U.S. market open on 4 December 2023, any remaining accounts (excluding Accredited Investors) with a debit balance (margin loan financed by securities lending) may have positions liquidated to bring their account to a zero or positive cash balance. |
How to Transfer Assets in My TD Ameritrade Account?
If you hold only cash in your TD Ameritrade account, then a simple wire withdrawal into your registered bank account can be processed easily. However if you are stuck in trades or holding securities that you wish to keep for the long term, there are only a couple of options that you can take.
- Liquidiate your positions and then withdraw the full cash amount from your account into your bank account.
- Transfer the assets to another provider. This process may be abit more tedious as you will need to reach out to your chosen financial institution for steps on how to process the Transfer of Assets (TOA). If you have been instructed to complete any TD Ameritrade forms, you can use the following: DTC Request Form-TDAS 1021 (tdameritrade.com.sg)
Alternatives for TD Ameritrade for Singapore Retail Investors
These brokers are regulated by the MAS and have the most competitive rates in Singapore at the moment.
Unlike traditional brokerages like DBS Vickers & UOB Kay Hian, these brokerages operate on a custodian model – meaning that you don’t actually receive the shares in your CDP account, but rather the broker’s custodian holds the shares on your behalf. They are able to offer competitive trading fees and abit more flexibility on buying and selling shares.
Apart from just the fee comparison and bonuses for signing up, it is also important to consider the long-term standing of brokerages and understand the platform risk that comes with them.
| Platform | Pros | Cons |
|---|---|---|
| IBKR | • Good reputation and long history • Has access to stock exchanges in many countries • ACAT transfers enabled | • Must pay for live market data |
| Tiger Brokers | • Sign up freebies • Zero commissions for SG, US, HK, CN stocks (platform fee applies) | • Based in China (may be subject to regulations in future) • Short history in SG |
| Moo Moo | • Sign up freebies • Zero commissions for 1 year for SG stocks | • Based in China (may be subject to regulations in future) • $0.99 platform fee/order |
| Webull | • Sign up freebies • Zero commissions for US stocks and ETFs • ACAT transfers enabled | • Short history in SG • Zero commissions applies for only 6 months |
I have accounts with all 4 brokerages but personally, I prefer to use IBKR for most of my portfolio because of their long-term good standing as a reliable brokerage and access to a broad range of stock exchanges.
💡 If you’re planning to use Interactive Brokers as an alternative, click here for the complete step-by-step guide to transferring all your assets from TD Ameritrade to your IBKR account.