Here's Why I Have Accounts at 3 Different Brokerages

I've been an investor for a long time, opening my first online brokerage account in 2003 when I was still in college. At that point, buying and selling stocks online was a relatively new concept, a $9.99 commission for stock trades seemed extremely cheap compared with the traditional brokerage model, and my broker was simply called "Ameritrade."

A lot has changed with both that company and the brokerage industry in the more than two decades since. Commissions for online stock trades are largely a thing of the past, and with the rise of app-based investment platforms, there is now a wide variety of features and perks that come with brokerage accounts.

As of April 2024, I now have accounts with three different brokers -- TD Ameritrade, Charles Schwab, and SoFi. Here's why.

My original account(s) remain intact

First off, I still have my original TD Ameritrade account. The exact same standard (taxable) brokerage account I opened in 2003 still exists today. I also have a few other accounts at TD Ameritrade, including my kids' UTMA accounts and a small Roth IRA.

However, TD Ameritrade has been acquired by Schwab, and the process of moving accounts over is currently underway. So far, the only account that has moved over is my main retirement account, but the others are scheduled to move within the next few months.

So, that takes care of two of the three brokers I use.

For new money, I'm using SoFi

More recently, I've shifted away from adding new money into the accounts mentioned in the previous section. About a year ago, I opened two brokerage accounts at SoFi (one taxable and one for retirement savings) and have been adding new money to those.

The biggest reason for doing this is while I love TD Ameritrade's investment platform, I'm not as much of a fan of Schwab's. To be fair, the fact that I've used TD Ameritrade for more than 20 years might have something to do with how comfortable I am with the platform, but whatever the reason, I find Schwab's web platform a bit difficult to navigate.

On the other hand, SoFi is built to be easy to use. With the app or web-based platform, I can quickly and easily deposit or transfer money, place trades, and get stock quotes. Plus, my main checking and savings accounts are with SoFi, and there's a certain element of convenience that comes with having accounts in the same place.

The best of both worlds

After reading the last part, a logical question might be, "Well, why don't you just move everything to SoFi?" And that's certainly a fair question (and something I've considered doing).

But the answer is that both platforms have pros and cons. While I'm not the biggest fan of Schwab's platform, it does offer things like third-party stock research, complex charting tools, and other things I can't do with SoFi. Schwab is also offering the same thinkorswim trading software I've been using through TD Ameritrade for years. While I'm not much of an active trader, the software is fantastic for watching a market news feed and monitoring dozens, or even hundreds of stocks at the same time.

In addition to SoFi's user-friendly platform, the tech-focused financial company offers easy access to IPOs for everyday investors, allows me to earn rewards for automatic transfers to my account, and more.

The point is that when deciding which brokerage is right for you, the answer might not be just one. For example, many investors use different brokers for their retirement accounts than for their taxable accounts. It just depends on what features matter to you the most, and what brokers offer them.