Profile: TD Ameritrade Holding Corp (AMTD.K)
7 Mar 2014
TD Ameritrade Holding Corporation (TD Ameritrade) is a provider of securities brokerage services and technology-based financial services to retail investors, traders and independent registered investment advisors (RIAs). The Company provides its services predominantly through the Internet, a national branch network and relationships with RIAs. The Company provides products and services, such as touch-tone trading; trading over the Internet; unlimited, streaming, free real-time quotes; extended trading hours; direct access to market destinations; and commitment on the speed of order execution.
The Company delivers products and services for active traders, long-term investors and independent RIAs. The Company delivers products and services for active traders, long-term investors and independent RIAs. TD Ameritrade is its core offering for self-directed retail investors. The Company offers tools and services, including Trade Architect, SnapTicket, Trade Triggers, QuoteScope, Market Motion Detector and WealthRuler. The Company futures and foreign exchange trading to TD Ameritrade brokerage clients through its thinkorswim from TD Ameritrade desktop application. The Company offers TD Ameritrade Apex for clients who place an average of five trades per month over a three-month period. Apex clients receive free access to services that are available on a paid subscription basis, as well as access to exclusive services and content.
TD Ameritrade Institutional is a provider of brokerage and custody services to more than 4,000 independent RIAs and their clients. These services are all designed to help advisors build their businesses. thinkorswim by TD Ameritrade provides a suite of trading platforms serving self-directed and institutional traders and money managers. thinkorswim clients trade a range of products including stock and stock options, index options, futures and futures options, foreign exchange, mutual funds and fixed income. Investools offers a suite of investor education products and services for stock, option, foreign exchange, futures, mutual fund and fixed-income investors. Investools’ educational products and services are primarily built around an investing method that is designed to teach both experienced and beginning investors how to approach the selection process for investment securities and actively manage their investment portfolios. Course offerings are combined with Web-based tools, personalized instruction techniques and ongoing service and support and are offered in a variety of learning formats. Designed for the advanced student, continuing education programs offer students access to a multitude of products and services priced either individually or on a bundled basis. Typically included in the continuing education bundles are additional curriculum, online courses, live workshops and coaching services.
Amerivest is an online advisory service that develops portfolios of exchange-traded funds (ETFs) or mutual funds, along with cash and cash alternatives, to help long-term investors pursue their financial goals. Its subsidiary, Amerivest Investment Management, LLC, recommends an investment portfolio based on its automated five-step process centered on an investor’s goals and risk tolerance. TD Ameritrade Corporate Services provides self-directed brokerage services to employees and executives of corporations, either directly in partnership with the employer or through joint marketing relationships with third-party administrators, such as 401(k) providers and employee benefit consultants. Trust and custody services are also offered to a range of plan types through its TD Ameritrade Trust Company subsidiary.
Products and Services
The Company provides retail brokerage services to its clients. The products and services available to its clients include common and preferred stock, exchange-traded Funds, options, futures, foreign exchange, mutual funds, fixed income, New issue securities, margin lending and cash management services. Clients can purchase common and preferred stocks, American Depository Receipts and closed-end funds traded on any United States exchange or quotation system.
The Company’s ETF Market Center offers its clients over 100 commission-free ETFs, each of which has been selected by independent experts at Morningstar Associates. Trades in these ETFs are commission-free, provided the funds are held for 30 days or longer. Its Website includes an ETF screener, along with independent research and commentary to assist investors in their decision-making. The Company offers a range of option trades, including complex, multi-leg option strategies. All option trades, including complex trades, are accessible on its trading platform. The Company offers futures trades, as well as options on futures, in a variety of commodities, stock indices and currencies. The Company offers access to trading in over 100 different currency pairs. Clients can compare and select from a portfolio of over 13,000 mutual funds from fund families, including a range of no-transaction-fee (NTF) funds. Clients can also exchange funds within the same mutual fund family.
The Company offers its clients access to a variety of Treasury, corporate, government agency and municipal bonds, as well as mortgage-backed securities and certificates of deposit. The Company offers primary and secondary offerings of fixed income securities, closed-end funds and preferred stock. Through third-party banking relationships, the Company offers FDIC-insured deposit accounts and money market mutual funds to its clients as cash sweep alternatives. Through these relationships, the Company also offers free standard checking, free online bill pay and automated teller machine (ATM) services with unlimited ATM fee reimbursements at any machine nationwide. The Company earns commissions and transaction fees on client trades in common and preferred stock, ETFs, closed-end funds, options, futures, foreign exchange, mutual funds and fixed income securities.
Client Service and Support
The Company provides access to client service and support through the means of Websites, Branches, e-mail and telephone. Its Websites provide information on how to use its services, as well as education center that includes a guide to online investing and an encyclopedia of finance. Ted, its Virtual Investment Consultant, is a Web tool that allows retail clients to interact with a virtual representative to ask questions regarding its products, tools and services. As of September 30, 2011, it offered a network of over 100 retail branches, located in metropolitan areas. It provides a toll-free number that connects to call handling systems. These systems provide automated answering and directing of calls to the proper department. Its systems also allow linkage between caller identification and the client database to give the client service representative access to the client’s account data when the call is received.
The Company’s subsidiary, TD Ameritrade Clearing, Inc. (TDAC), provides clearing and execution services to TD Ameritrade, Inc., its introducing broker-dealer subsidiary. Clearing services include the confirmation, receipt, settlement, delivery and record-keeping functions involved in processing securities transactions. Its clearing broker-dealer subsidiary provides the back office functions, such as maintaining client accounts; extending credit in a margin account to the client; engaging in securities lending and borrowing transactions; settling securities transactions with clearinghouses, such as The Depository Trust and Clearing Corporation and The Options Clearing Corporation; settling commissions and transaction fees; preparing client trade confirmations and statements; performing designated cashiering functions, including the delivery and receipt of funds and securities to or from the client; Possession, control and safeguarding of funds and securities in client accounts; processing cash sweep transactions to and from insured deposit accounts and money market mutual funds; transmitting tax accounting information to the client and to the applicable tax authority, and forwarding prospectuses, proxy materials and other shareholder information to clients.
The Company competes with E*TRADE Financial Corporation, The Charles Schwab Corporation, Fidelity Investments, Scottrade, Inc., Merrill Lynch and Morgan Stanley Smith Barney.
TD Ameritrade Holding Corp
200 South 108th Avenue
OMAHA NE 68154