“Less competition can lead to less negotiating power,” said Matt Cosgriff, a wealth management group leader at BerganKDV.
Roger Ward, principal wealth adviser at TrueWealth Management in Atlanta, said that Schwab’s dominant position in the industry made Monday’s announcement almost inevitable.
“When they change course it can take time,” he said of the 20,000-person company. “But when they get on the desired course, they are financially strong enough and culturally motivated enough to roll over smaller contributors like TD Ameritrade.”
This article was provided by Bloomberg News.