TD Ameritrade Singapore retail exit: Simplest way to transfer your stocks

TD Ameritrade recently made a significant announcement to cease serving retail investors in Singapore, effective December 2023. This strategic move marks a transition toward focusing exclusively on accredited investors, a market segment TD Ameritrade believes has been ‘historically underserved’ in Singapore.

TD Ameritrade’s decision to shift its focus from retail investors to accredited investors stems from a desire to optimise its services and tailor them to a specific target audience:

‘TD Ameritrade Singapore has made a strategic decision to focus on meeting the needs of accredited investors. We are committed to serving this unique market and providing these sophisticated local investors with access to the US markets, an offer that will grow even more powerful once TD Ameritrade’s best-in-class thinkorswim trading platform is married with Charles Schwab’s breadth of wealth management capabilities in 2024.’

For retail investors who have been utilising TD Ameritrade’s services, this announcement may come as a surprise and potentially pose a challenge. Retail investors must be aware of the implications and carefully plan their next steps in response to this shift.

Option 1: Become an accredited investor

To qualify as an accredited investor, you must meet one of the criteria set forth by the Monetary Authority of Singapore:

• Personal income exceeding S$300,000 per year (or its equivalent in foreign currency) in the past 12 months
• Net personal assets surpassing S$2,000,000, with the net value of your primary residence contributing up to S$1 million (or its equivalent in foreign currency)
• Net financial assets exceeding S$1,000,000 (or its equivalent in foreign currency)

Should customers opt to become an accredited investor with TD Ameritrade, they will retain access to the thinkorswim trading platform and receive support from the Singapore office. For those considering becoming an accredited investor, visit the TD Ameritrade Accredited Investor page here.

Option 2: Cash out your holdings

For TD Ameritrade customers who don’t meet the requirements to become an accredited investor, one option is to sell all your holdings on TD Ameritrade and initial a cash withdrawal from your TD Ameritrade Singapore account to your personal bank account.

On TD Ameritrade:

• Go to ‘Account Centre’
• Select ‘Withdrawals’
• Go to ‘Wire Transfers’
• Select ‘Initiate Wire transfer process’

This option is suitable for individuals with cash-only balances, smaller account balances or those seeking to liquidate their investment portfolio. On the other hand, for customers with substantial account balances who plan to transfer their holdings to a new broker, option 3 below may be more suitable.

Do note that selling and then repurchasing your assets with a different brokerage will incur additional brokerage costs and potential price differences. Depending on your tax jurisdiction, you may also face taxation on any capital gains.

Remember to take action before 27 October 2023 to avoid the imposition of a monthly account maintenance fee of US$50. Starting from 1 December 2023, after the close of the U.S. markets, your account access will be restricted, limiting your ability to only liquidating or closing positions.

For more comprehensive information please refer to the TD Ameritrade FAQ section.

Option 3: Transfer holdings to a new broker

When transferring your positions from TD Ameritrade, the first step is to explore alternative brokers. Remember to conduct thorough research to identify other reputable brokerage firms available in Singapore. For a comprehensive guide on brokers in Singapore, refer to our Singapore brokerage guide.

Once you’ve chosen your new broker and completed the verification steps, it’s time to initiate the process of transferring your investments to ensure a seamless transition with minimal disruption to your portfolio.

ACATS transfer

My suggestion is to consider using Interactive Brokers as you can seamlessly transfer your assets via ACATS (Automated Customer Account Transfer Service). ACATS is a system that automates and standardizes procedures for the transfer of assets in a customer account from one U.S. brokerage firm or bank to another. It typically takes 4-8 working days to complete the transfer.

On Interactive Brokers:

• Select ‘Transfer Positions’ under the menu
• Choose ‘Incoming Transfer’
• Select ‘United States’
• Select ‘TD Ameritrade’ as the broker
• Enter your TD account number
• Select ‘Yes’ under Transfer all assets
• Type your signature and complete the process

Other brokers in Singapore that are ACATS supported include Moomoo and Syfe Trade. Moomoo is also giving one free Apple share if you transfer stocks into your account.

Non-ACATS transfer

If your new broker is not ACATS supported, you will need to 1) submit an incoming transfer request for each of your holdings on your new broker, and 2) submit the DTC Request Form-TDAS 1021 form to TD Ameritrade at funding@tdameritrade.com.sg.

Due to a potentially high volume of share transfer requests at TD Ameritrade, the stock transfer-in process may take longer than usual, often up to 15 business days, depending on when TD Ameritrade processes and transfers the shares out of your account. Stay patient throughout this process, and ensure open communication with both brokerages for a successful transition.

The fifth perspective

TD Ameritrade’s strategic shift towards catering exclusively to accredited investors in Singapore may limit the choices available to retail investors. However, the silver lining is that numerous other platforms already exist, offering competitive products and services. Retail investors should conscientiously evaluate their options and explore alternative brokerage solutions that align with their long-term investment goals and preferences.