|Headquarters||Westlake, Texas, U.S.|
|Joe Ricketts (Founder)|
Steve Boyle (Interim President and CEO)
Electronic trading platform
|Revenue||$5.452 billion (FY 2018)|
|$1.998 billion (FY 2018)|
|$1.473 billion (FY 2018)|
|Total assets||$37.520 billion (FY 2018)|
|Total equity||$8.003 billion (FY 2018)|
Number of employees
|Parent||Charles Schwab Corporation|
|Footnotes / references|
TD Ameritrade is a broker that offers an electronic trading platform for the trade of financial assets including common stocks, preferred stocks, futures contracts, exchange-traded funds, forex, options, cryptocurrency, mutual funds, fixed income investments, margin lending, and cash management services. The company is a subsidiary of Charles Schwab Corporation and its services and accounts will be integrated with those of Schwab by 2023.
The company was founded as Ameritrade in 1971 before the company acquired competitor TD Waterhouse from the Toronto-Dominion Bank in 2006. The newly combined company was then renamed TD Ameritrade. It was acquired by Charles Schwab Corporation in 2020.
TD Ameritrade was originally based in Omaha, Nebraska, with major trading centers in Southlake, Texas and St. Louis, Missouri. Charles Schwab plans to move most of the operations to its headquarters in Westlake, Texas.
As of March 31, 2020, TD Ameritrade had more than 12 million client accounts and client assets of approximately $1.2 trillion. In fiscal 2020 second quarter, the company executed an average of 2.1 million daily average revenue trades per day.
In fiscal 2019, the company derived 33.3% of its revenues from commissions and fees including payment for order flow, 28.5% of its revenues from the company's bank deposit account program, 25.5% of revenues from interest, 9.7% from investment product fees, and 3% from other sources.
In September 1996, the company merged with TransTerra.
In June 2003, the company acquired MyDiscountBroker.com.
In January 2006, the company acquired the United States brokerage business branded as TD Waterhouse from Toronto-Dominion Bank. The newly combined company was renamed TD Ameritrade, with the Toronto-Dominion Bank owning 40%.
In May 2008, CEO Joe Moglia announced he would be vacating the CEO position and would become Chairman. He was succeeded as CEO by COO Fredric Tomczyk, who was formerly Vice Chair of Corporate Operations at Toronto-Dominion Bank.
In 2013, the company opened a new $250 million headquarters in Omaha.
In September 2017, the company acquired Scottrade, based in St Louis, Missouri, making St. Louis the second-largest hub for the company. The transition of client accounts occurred in February 2018.
In August 2019, CEO Tim Hockey announced his departure from TD Ameritrade in early Q1 2020.
In October 2019, TD Ameritrade reduced most online trades to being commission free.
In November 2007, the company reported that hackers gained access to most of its clients' names, Social Security numbers, dates of birth, addresses, phone numbers, and trading activity. In 2011, after being sued in a class action, the company settled by agreeing to compensate customers that were victim to identity theft between $50 and $2,500 each. The settlement was criticized for netting the attorneys almost as much money as the victims.
Auction rate securities scandal
In 2009, TD Ameritrade settled a lawsuit alleging it had marketed auction rate securities as short-term investments. The settlement included a $456 million payment and the buyback of the securities, compensating investors for losses.
Customer losses in reserve money funds
The company recommended to its customers to invest cash holdings in a money market fund that was an affiliate of the Reserve Primary Fund and the fund gained approximately $1 billion in assets as a result of such marketing by the company. The company received commissions from the fund for steering customers. In September 2008, during the financial crisis of 2007–2008, as a result of its holdings in securities of Lehman Brothers, the fund was forced to break the buck and $1 billion in cash equivalents of TD Ameritrade clients were frozen. The company was accused of having a conflict of interest as a result of commissions that it received, for having poor marketing ethics, and for misrepresenting the safety of the investment. Fredric Tomczyk, President of the company, argued that the contract with the Reserve Fund was a standard contract and that "an investment firm has to make money in some way." The company was named in class action lawsuits by its customers and the U.S. Securities and Exchange Commission launched an investigation into its marketing practices. In 2008, the company agreed to reimburse its customers for up to a 3% loss in the Reserve Primary Fund, or up to $50 million. In 2011, the company settled the SEC case and agreed to pay 1.2¢ per share of the Reserve Yield Plus Fund that was held by its customers, or $10 million in total. The Reserve Yield Plus made its final distribution in 2016 and investors received 97 to 98 cents per share in addition to compensation from TD Ameritrade.
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- "Investors in fallen money fund Reserve Yield Plus can't access cash". New York Daily News. Associated Press. October 3, 2008.
- "SEC Charges TD Ameritrade for Failing to Supervise Its Representatives Who Sold Shares of the Reserve Yield Plus Fund" (Press release). U.S. Securities and Exchange Commission. February 3, 2011.
- "TD Ameritrade investors in Reserve money fund could share settlement". USA Today. Associated Press. February 3, 2011.
- "FEDERAL COURT APPROVES FINAL DISTRIBUTION OF ASSETS" (PDF) (Press release). Reserve Funds. April 11, 2016.
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