Top FAQs

We are in the early stages of a process that is expected to take between 30-36 months from the original deal close, which would be somewhere between April and September 2023 for most accounts. Until then, Schwab and Tda-trading will operate as two separate broker-dealers. So for now, there’s nothing you need to do. You can continue to work with Tda-trading as you do today and receive the same level of excellent service you’re used to.

As we bring the strengths of our two firms together, we’re committed to making the process as simple and seamless as possible, and we’ll be communicating with you along the way.
 

To continue to provide you with a best-in-class trading experience, We have decided to adopt thinkorswim. That means now and in the future, you can trade confidently—knowing you'll have ongoing access to this award-winning platform suite, along with the innovation, education, and service you've come to expect. Be sure to check the

To ensure we have time to build the best experience possible for our clients, we expect account conversion to be complete within 30-36 months of the original deal close, which would be somewhere between April and September of 2023 for most accounts.

Until then, Schwab and Tda-trading will operate as two separate broker-dealers. So for now, there’s nothing you need to do. You can continue to work with Tda-trading as you do today and receive the same level of excellent service you’re used to. As we bring the strengths of our two firms together, we’re committed to making the process as simple and seamless as possible, and we’ll be communicating with you along the way.  

Short selling is a sale of a security that you do not own. Orders to sell short are placed with the anticipation that the market price of a security will decline so that you may then purchase the security (buy to cover) at a lower price.

These are the requirements for short selling at Tda-trading:
• You must have an account that is approved for margin with $2,000 margin equity (non-retirement account)
• The stock you want to sell short must be marginable
• The stock must be available to borrow

Please note: When short selling, the risk of loss is potentially unlimited and you may be required to cover your short position at an unfavorable price. There is no guarantee that Tda-trading can continue a short position for an unlimited time.

Tda-trading makes shares available for shorting only from margin accounts when margin is being used. If you have a cash account, your shares will never be loaned for short sales. You can tell if you have a margin account if “Margin trading” is enabled in the Elections & routing section of Client Services > My Profile > General.

If you have a margin account and shares you own are loaned for short sales, there is no impact on your ability to trade those shares later.

It’s important to understand some of the basic concepts of short selling, including the definition and potential impact of a short squeeze.

Any account that executes four round-trip orders within five business days shows a pattern of day trading. A round trip occurs when you buy and sell (or sell short and buy to cover) the same stock or options position during the same trading day. If you have been flagged as a pattern day trader, you will need at least $25,000 in total account value at the start of the day before you can day trade. 

There is no minimum to open a new account; however, a $2,000 deposit is required to be considered for margin and certain options privileges, regardless of any promotional offer.

Opening an account online is the fastest way to open and fund an account. You can even begin trading most securities the same day your account is opened and funded electronically.

Interested in transferring your account to Tda-trading? To transfer assets from another brokerage company, transfer agent, or mutual fund company, log in to your account, and go to My Account > Account Transfer.

Tda-trading offers a comprehensive and diverse selection of investment products. You can trade stocks, options, mutual funds, ETFs, futures, forex, and bonds and CDs in a standard account. Please note that investment choices may vary in less common account types such as Trust accounts, 529 education accounts, and pension plans. Each plan will specify what types of investments are allowed. See account types and investment products for more information.

We believe in fair, straightforward pricing and for you that means $0.00 commissions on online US exchange-listed stocks, ETFs and options regardless of account balance or how many shares you buy. For options trades a $0.65 per contract fee applies. You won't be charged any platform, inactivity, or market data fees.

If you lose cash or securities from your account due to unauthorized activity, we'll reimburse you for the cash or shares of securities you lost. We offer you this protection, which adds to the provisions that already govern your account, in case unauthorized activity ever occurs and it was through no fault of your own.

Tda-trading is a member of the Securities Investor Protection Corporation ("SIPC"), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure is available on request at www.sipc.org.

Additionally, Tda-trading provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers. In the event of a brokerage insolvency, a client may receive amounts due from the trustee in bankruptcy and then SIPC. Supplemental coverage is paid out after the trustee and SIPC payouts and under such coverage each client is limited to a combined return of $152 million from a trustee, SIPC and London insurers. The Tda-trading supplemental coverage has an aggregate limit of $500 million over all customers. This policy provides coverage following brokerage insolvency and does not protect against loss in market value of securities.

Tda-trading, Inc. is a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available on request at www.sipc.org.

Additionally, Tda-trading provides each client $149.5 million worth of protection for securities and $2 million of protection for cash through supplemental coverage provided by London insurers. In the event of a brokerage insolvency, a client may receive amounts due from the trustee in bankruptcy and then SIPC.  Supplemental coverage is paid out after the trustee and SIPC payouts and under such coverage each client is limited to a combined return of $152 million from a trustee, SIPC, and London insurers. The Tda-trading supplemental coverage has an aggregate limit of $500 million over all customers. This policy provides coverage following brokerage insolvency and does not protect against loss in market value of the securities.

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The 5498 form reports IRA contributions (including catch-up contributions) and the fair market value of an IRA. If you made an IRA contribution, 60-day rollover, or direct rollover for the reporting year, you’ll get a 5498 form.*

We typically provide this form at the end of May. Eligible retirement account owners typically have until April 15 to make a prior-year contribution to their account. We will send the 5498 forms after that date to ensure all prior year contributions are included.

*Contributions to a qualified retirement plan (QRP) are reported on your W-2. The IRS and your tax professional can provide more information on reporting IRA contributions.

You can find the most recent versions of your consolidated 1099 and other tax documents in our under "Your Year-end Tax Documents" module. 

The IRS generally requires that you file an amended return on. You may also wish to seek the advice of a licensed tax advisor.

Tda-trading must issue a corrected 1099 when mutual funds and Real Estate Investment Trusts (REITs) reallocate or reclassify their distributions in January for the previous tax year. Occasionally this process isn't complete, or Tda-trading has not yet received the updated information, by the time 1099s are due to be mailed.

IRS regulations require that we issue a corrected 1099 within 30 days of receiving information showing that the previously issued form was incorrect.

Tda-trading has reopened its branches with a focus on health & safety. The firm’s comprehensive branch reopening plan includes enhanced safety measures that reflect best practices outlined by the Center for Disease Control and Prevention (CDC) as well as regulations set by local authorities. These steps include:

• Cleaning of high-touch items throughout the day
• Contactless servicing options for check deposits and paperwork
• Making hand sanitizer and masks available
• Requiring employees & clients to not enter the branch if they have COVID-19 symptoms or have been in contact with anyone diagnosed or tested for COVD-19