There's a 200-pound gorilla in the room. That's how Daren Blonski, our Co-founder and Managing Principal, described Schwab's proposed 26 billion dollar acquisition of TD Ameritrade to Wealth Management in "Schwab, TD Ameritrade Deal Would Reshape RIA Landscape". Daren believes the deal isn't good for the industry overall: while lower costs could help consumers, he saw advisors losing options as the custodian landscape consolidated.
Key Takeaways
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The Schwab-TD Ameritrade merger combined roughly 5 trillion dollars in assets, giving one custodian control of more than half the RIA custody market.
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Consolidation like this can mean lower costs for consumers but fewer choices and less competitive pressure for advisors.
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Smaller, newer advisory firms often rely on custodians like TD Ameritrade that are more willing to work with them, support that can get squeezed out as custodians get bigger.
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Daren's take reflects why independence and choice of custodian matter to how a firm serves its clients, not just what it charges.
This is part of why independence matters so much to how we operate. Read more on our About Us page.