If you initially had an account with Scottrade®, in 2017, you became a TD Ameritrade client. As with any transition, this means getting acquainted with new policies and procedures. For most brokerage companies, closing an account is a process of many similar steps, but it is important that you know those steps before starting.
Switch to Standard Bank Account
If you’re going to transfer money to your bank account, you probably won’t have to do anything in this step. But it’s important to remember that the Federal Deposit Insurance Corporation only covers $250,000 for one bank, so if the amount you’re transferring will make you exceed that level, consider setting up an account with another bank. Keep in mind that this $250,000 is not for each account. If you had $250,000 in savings and $50,000 to check, only $250,000 would be covered. You will also not be able to get a suitable interest rate on the amount you deposit if you take it into a standard account.
Switch to a new Broker
On the other hand, if you simply want to cooperate with another brokerage company, you will need to do some work to set it up on the user interface. Contact the broker of your choice and let them know that you want to transfer your funds. Note that while TD Ameritrade does not charge a fee to close your account, you will have to pay a $75 fee for the transfer. Some brokers offer to pay fees or contract bonuses of $100 or more, which is great if you’re still shopping around. You will work with the new broker to receive funds from your Ameritrade TD account and enter its new home.
Start a remittance
Your new broker will deliver a Transfer Start Form, which you will complete to start the process. You won’t need to do anything from this point on, but the two brokers will have a lot of work to do. Your new broker will enter all your information into a system called Automatic Client Account Transfer Service, which handles transfers between trading accounts. ACATS informs TD Ameritrade that the remittance has been requested and as long as all information is provided accurately and completely, the remittance process will begin. In total, this process takes about a week to complete.
Close your Ameritrade TD account
When the transfer is complete, contact TD Ameritrade at 800-669-3900 and request the closure of your account. You can also send a written request to your home TD Ameritrade branch. Include your name, your account number, your account closure request, your current address, and your signature.