TOS Changes Clearing Firm

Discussion in 'Retail Brokers' started by uptickk, Jul 21, 2011.

  1. uptickk


    When your broker (TOS) changes their clearing firms (Penson Financial Services, Inc., to TD Ameritrade Clearing) is there anything that one should look into or be concerned with? I know that different clearing firms can set different margin requirements but other than that I have had little interaction with my clearing firms.

  2. JamesL


    TD Ameritrade now owns TOS.
  3. uptickk


    Correct. Just wondering if there are vast differences from one Clearing Firm to the next. It makes sense they would want to clear through their own company.

    Edit: I have not read much regarding clearing firms for retail brokers and was just wondering if there are any concerns.
  4. Catoosa


    Does TDAT now have clearing for futures? They did not when I checked a couple of years ago but said they would at some point in the future. Penson does handle the clearing of futures contracts. Penson seems to me to be a poorly managed company. All considered, I would feel better with TDAT clearing my trades.
  5. WS_MJH


    I believe you can stay with Penson or go to TD. Even now, I think you could open an account with either or, but TD is even more expensive than TOS.
  6. How did you figure out there may be a clearing firm change, did you get an email?

    Does this impact the tax tools that TOS had (I think they were actually Pension's)?

    I like Pension, I think Lightspeed also clears through them.
  7. I'm still getting confirms from Penson. Is there a notice I missed? (BTW, I have noticed that suddenly everything seems to be flagged hard to borrow sometimes, something I noticed with TD but was never a problem with TOS. I believe that is a function of the clearing firm used. It seems TD doesn't try to aggregate their inventory with other brokers, that's the only thing that seems to explain why shorting anything is so frustrating over at TD.)
  8. My ToS account was moved away from Pension nearly a year ago...maybe longer. I'm really surprised you guys are just getting switched now.
  9. uptickk


    The only reason I was contacted was because I manage accounts for others and my access privileges to their accounts will increase. This is the email I received yesterday. I also was cc'ed on a similar email to the individual’s accounts I manage. As far as the impact on tax tools I believe you are correct in that those tools are actually the clearing firms.

    Dear X,

    As you know, we are in the process of integrating TD Ameritrade and thinkorswim, combining an established firm that's been providing financial services for 35 years with the innovative thinkorswim trading technology that you've come to know. We will be sending you more information about the transition over the next few weeks.
    Now, as we approach the final stages in this process - the change in your clearing firm from Penson Financial Services, Inc. to TD Ameritrade Clearing, Inc. - we want to first provide you with information about the linking of your accounts when they come over to TD Ameritrade Clearing.
    What you need to know

    You are currently linked to an account(s) that has a different tax ID number or Social Security Number than your own, to enable you to have viewing and/or trading privileges in that account.
    We have sent all the account owners of that account an email asking them whether they want to maintain or discontinue the linking arrangement.

    This account owner(s) may be contacting you if you are actively managing positions in this linked account. You may wish to discuss the maintaining or abandoning of this linking arrangement with them. If the account owner(s) chooses to abandon this link, that account will no longer appear under your username.

    If the account owner(s) chooses to retain the linking when the accounts transfer to TD Ameritrade Clearing, the TD Ameritrade Account Linking Agreement will govern the accounts. It provides you with additional privileges. You will be able to take actions in that other account, in the account owner's name, as if you were the account owner, such as:

    Direct any business transaction
    Issue trading orders or cancellations
    Arrange money movements between your accounts
    Make fund requests in your name
    Access online documents and communications
    Request security certificates in your name
    Make address changes
    Engage in any other activity that you may initiate yourself

    If you have any questions about your linked accounts, or if we can be of any assistance, please contact us at, call us at 866-839-1100.

    Thank you.

    Steve QuirkScott Sheridan
    Senior Vice President, Trader GroupSenior Vice President, Trader Group
    TD AmeritradeTD Ameritrade
  10. I don't think TDA can handle portfolio margining quite yet, so those customers are still clearing Penson.
    #10     Jul 22, 2011