TD Ameritrade is a brokerage firm based in Omaha, Nebraska with a major trading center in St. Louis, Missouri. The TD letter is from Toronto-Dominion Bank, the largest shareholder. The company provides services to individuals and institutions that invest online. The company offers an electronic trading platform for the purchase and sale of financial securities including common stock, preferred stock, futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments. It also provides margin loans, and cash management services.
Video TD Ameritrade
Current operation
As of September 30, 2017, Ameritrade has 11,004,000 customer-funded accounts and client assets of $ 1.118 trillion. In fiscal year 2017, the company executed an average of 510,710 client transactions per day.
In fiscal year 2017, the company earned 37.6% of its revenues from commissions and fees including fees for the flow of orders, 30.1% of its revenue from Toronto-Dominion Bank for investment of idle cash balances, 18.8% interest income, 11, 5% of investment product cost, and 2.0% from other sources.
Maps TD Ameritrade
History
In 1975, the Securities and Exchange Commission banned the practice of fixed brokerage commissions and J. Joseph Ricketts and three partners opened First Omaha Securities, Inc. in Omaha, Nebraska.
In 1983, Ameritrade Clearing Inc. was established as a counterparty Central clearing broker.
In 1988, the company introduced the first bid system and entry order through touch-tone phones.
In 1995, the company acquired K. Aufhauser & amp; Company, Inc., the first company to offer online securities trading.
In January 1996, Accutrade from TransTerra launched "Accutrade for Windows," which encourages increased online investment.
In September 1996, TransTerra joined Ameritrade.
In March 1997, Ameritrade became a public company through an initial public offering.
In February 2001, Ameritrade acquired TradeCast, which has about 60 brokers/dealers, hedge funds and money management customers, for $ 67.3 million.
In July 2001, Ameritrade purchased the National Discount Brokerage for $ 154 million, adding $ 6.3 billion in client assets.
In September 2002, Ameritrade acquired Datek Online Holdings Corporation.
In June 2003, Ameritrade acquired Mydiscountbroker.com.
In 2004, Ameritrade acquired Bidwell and Company in January, BrokerageAmerica in February, and JB Oxford and Company in October.
In January 2006, Ameritrade Holding Corporation acquired a US branded brokerage business as TD Waterhouse from Toronto-Dominion Bank. This business is named TD Ameritrade.
In February 2008, the company acquired an account from Fiserv.
In May 2008, CEO Joe Moglia announced he would vacate the CEO position and would become Chairman. Fredric Tomczyk, a former COO, was named after his successor.
In January 2009, TD Ameritrade acquired Thinkorswim, a software manufacturer for active merchants, in cash and stock transactions worth approximately $ 606 million.
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 center for TD Ameritrade. Client account transitions occurred in February 2018.
In April 2018, TD Ameritrade and Havas placed ads put in blockchain bitcoin.
Legal action
Security violations
In November 2007, the company reported that the hacker gained access to most of his client's name, Social Security number, date of birth, address, phone number, and trading activity. In 2011, after being sued in a class action lawsuit, the company decided to compensate customers who were victims of identity theft between $ 50 and $ 2,500 respectively. The settlement was criticized for capturing the lawyers almost as much as the victims' money.
Auction level auction scandal
In 2009, TD Ameritrade resolved a lawsuit stating that it sold auction-level securities as short-term investments. Settlement includes payment of $ 456 million and repurchase of securities, compensating investors for losses.
Customer losses in spare cash fund
The Company recommends to its customers to invest cash holdings in money market funds that are affiliates of the Reserve Primary Fund and funds earned about $ 1 billion in assets as a result of such marketing by the company. The company receives a commission from the funds to direct the customer. In September 2008, during the 2007-2008 financial crisis, as a result of its ownership in Lehman Brothers securities, the fund was forced to break the losses and $ 1 billion in cash equivalent to the Ameritrade TD client being frozen. The company is accused of having a conflict of interest as a result of the commission it receives, due to poor marketing ethics, and for misrepresenting investment security. Fredric Tomczyk, President of the company, argues that the contract with the Reserve Fund is a standard contract and that "investment companies must make money in a certain way." The company was named in a class action lawsuit by its customers and the US Securities and Exchange Commission launched an investigation into its marketing practices. In 2008, the company agreed to replace its customers 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 Â ¢ per share from the Reserve Yield Plus Fund held by its customers, or $ 10 million in total. The Reserve Yield Plus does its final distribution in 2016 and investors receive 97 to 98 cents in addition to compensation from TD Ameritrade.
Sponsors
The company has the naming rights for TD Ameritrade Park Omaha which pays an average of $ 1 million per year.
See also
- Comparison of online brokers in the United States
References
External links
Source of the article : Wikipedia
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