|Traded as||NASDAQ: AMTD|
Russell 1000 component
|Headquarters||Omaha, Nebraska, U.S.|
| Tim Hockey, CEO|
Joe Moglia, Chairman
J. Joseph Ricketts, Founder
Steve Boyle, CFO
|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)|
|Owner||Toronto-Dominion Bank (42%)|
Number of employees
|Footnotes / references|
TD Ameritrade is a brokerage firm based in Omaha, Nebraska with a major trading center in St Louis, Missouri. The letters TD are derived from Toronto-Dominion Bank, the largest shareholder. The company provides services for individuals and institutions that are investing online. The company offers an electronic trading platform for the purchase and sale of financial securities including common stocks, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments. It also provides margin lending, and cash management services.
As of September 30, 2018, Ameritrade had 11,514,000 funded client accounts and client assets of $1.297 trillion. In fiscal year 2018, the company executed an average of 811,110 client transactions per day.
In fiscal year 2018, the company derived 36.1% of its revenues from commissions and fees including payment for order flow, 28.3% of its revenues from Toronto-Dominion Bank for investment of idle cash balances, 23.3% of revenues from interest, 10.2% from investment product fees, and 2.1% from other sources.
In 1995, the company acquired K. Aufhauser & Company, Inc., the first firm to offer online securities trading.
In September 1996, TransTerra merged with Ameritrade.
In June 2003, Ameritrade acquired Mydiscountbroker.com.
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 TD Ameritrade. The transition of client accounts occurred in February 2018.
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 on the dollar in addition to compensation from TD Ameritrade.
- "TD Ameritrade Holding Corporation FY 2018 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
- Brown, Lisa. "TD Ameritrade closes on purchase of Scottrade, up to 1,000 job cuts planned". stltoday.com. Retrieved 2018-05-14.
- "Timeline: Milestones in TD Ameritrade history". Omaha World-Herald. October 31, 2016.
- Kamen, Ken (September 2, 2010). Reclaim Your Nest Egg: Take Control of Your Financial Future. John Wiley & Sons.
- AMERITRADE HOLDING CORPORATION Form S-1 JANUARY 21, 1997
- "AMERITRADE, IN ACQUISITION, SEEKS INSTITUTIONAL CLIENTS". The New York Times. Bloomberg News. February 15, 2001.
- "Ameritrade buys TradeCast". CNNMoney. February 14, 2001.
- "Ameritrade in deal to buy NDB.com". Chicago Tribune. August 1, 2001.
- "AMERITRADE WILL BUY NATIONAL DISCOUNT BROKERS". The New York Times. Reuters. August 1, 2001.
- Sorkin, Andrew Ross (April 8, 2002). "Ameritrade In Deal to Buy Online Rival Datek". The New York Times.
- Craig, Susanne (April 8, 2002). "Ameritrade Agrees to Buy Datek In $1.29 Billion Stock Agreement". The Wall Street Journal.(subscription required)
- "Ameritrade Closes on Mydiscountbroker.com Account Acquisition" (PDF) (Press release). Business Wire. June 16, 2003.
- "Ameritrade to buy Bidwell & Co". American City Business Journals. November 7, 2003.
- "Ameritrade to Acquire Accounts from BrokerageAmerica" (Press release). Business Wire. October 2, 2003.
- "JB Oxford & Company Completes Sale of Retail Accounts to Ameritrade, Inc" (Press release). PRNewswire. October 12, 2004.
- Ian, Austen (June 23, 2005). "TD Waterhouse USA Is Sold to Ameritrade". The New York Times.
- "Ameritrade Closes TD Waterhouse Acquisition". NBC News. Associated Press. January 25, 2006.
- "Sale of Fiserv unit to TD Ameritrade closes". American City Business Journals. February 4, 2008.
- "TD Ameritrade names COO Fred Tomczyk as next CEO". Fox News. Associated Press. May 15, 2008.
- "TD Ameritrade COO named next CEO". The Globe and Mail. Bloomberg News. May 16, 2008.
- "TD AMERITRADE to Acquire thinkorswim" (Press release). Business Wire. January 8, 2009.
- Hubbard, Russell (July 31, 2013). "TD Ameritrade shows off its new $250 million headquarters". Omaha World-Herald.
- "TD Ameritrade Closes Acquisition of Scottrade Financial Services, Inc" (Press release). Business Wire. September 18, 2017.
- Edwards, Greg (September 18, 2017). "TD Ameritrade closes on acquisition of Scottrade". American City Business Journals.
- "TD Ameritrade Completes Scottrade Account Conversion". TD Ameritrade Holding Corporation. February 28, 2018. Retrieved 12 March 2018.
- Swant, Marty (April 26, 2018). "TD Ameritrade and Havas Placed an Ad on the Blockchain". AdWeek.
- "TD Ameritrade's six million customers hit with security breach". CNET. November 26, 2007.
- Carolina Bolado (September 13, 2011). "TD Ameritrade Settles Data Breach Suit For Up To $6.5M". Law360.
- Kravets, David (July 11, 2008). "Ameritrade Hack Settlement: $2 Per Victim, $1.8 Million for Lawyers". Wired.
- Pepitone, Julianne (July 20, 2009). "TD Ameritrade settles auction-rate securities case for $456M". CNNMoney.
- "SEC Charges TD Ameritrade for Auction Rate Securities Sales Practices" (Press release). U.S. Securities and Exchange Commission. July 20, 2009.
- "TD Ameritrade Agrees To Auction-Rate Buyback". The New York Times. Associated Press. July 20, 2009.
- HOLZER, JESSICA; MAXEY, DAISY (February 4, 2011). "TD Ameritrade Settles SEC Case Over Reserve Fund". The Wall Street Journal.(subscription required)
- Oneal, Michael (November 2, 2008). "Fund losses fuel customers' anger; Revenue-sharing deal raises questions of conflict". Chicago Tribune.
- MAXEY, DAISY (September 12, 2009). "Reserve Yield Plus Investors in SEC Plea". The Wall Street Journal.(subscription required)
- ANAND, SHEFALI; SCANNELL, KARA (September 25, 2008). "Ameritrade to Make Clients Whole on Primary Fund". The Wall Street Journal.(subscription required)
- AMBROSE, EILEEN (December 16, 2008). "Investors feel burned by what looked like a money market fund". The Baltimore Sun.
- "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.
- "TD Ameritrade Inks Naming-Rights Deal For CWS Ballpark In Omaha". Advance Publications. June 9, 2009.