TD Ameritrade Holding
“Market Cap $18.77 B As of May 2014
At a Glance
- Industry: Investment Services
- Founded: 1971
- Country: United States
- CEO: Fredric Tomczyk
- Website: www.amtd.com
- Employees: 5,429
- Sales: $2.93 B
- Headquarters: Omaha, Nebraska
#876 Global 2000
- #839 in Profit
- #955 in Assets
- #588 in Market value
TD Ameritrade Holding Corp. provides securities brokerage services and technology-based financial services to retail investors, traders and independent registered investment advisors (RIAs). The company provides its services through the Internet, a national branch network and relationships with RIAs. Its TD Ameritrade is a core offering for self-directed retail investors. The company offers futures and foreign exchange trading to its brokerage clients through thinkorswim from TD Ameritrade desktop application. Its Amerivest is an online advisory service that develops portfolios of ETFs or mutual funds, along with cash and cash alternatives, to help long-term investors pursue their financial goals. The company’s corporate services provide self-directed brokerage services to employees of corporations, either directly in partnership with the employer or through joint marketing relationships with third-party administrators. Its Investools offers investor education products and services for stock, option, foreign exchange, futures, mutual fund and fixed-income investors. TD Ameritrade Holding was founded by J. Joe Ricketts in 1971 and is headquartered in Omaha, NE.“
“TD Ameritrade Holding History
TD Ameritrade traces back its lineage to a small investment banking firm and First Omaha Securities, Inc. (later Accutrade) in Omaha, Nebraska. Ameritrade Clearing Inc. was established as a clearing broker in 1983, and by 1987 TransTerra Company became the holding company for Ameritrade, and the company was subsequently known as TransTerra Company. In 1988, the company introduced the first quote and order entry system via the touch-tone phone. In 1995, the company acquired K. Aufhauser & Company, Inc. and its WealthWeb, the first firm to offer online securities trading, receiving the first order in August 1994. In October 1995, Ameritrade acquired All American Brokers. In January 1996, TransTerra’s Accutrade launched “Accutrade for Windows,” the first online investing system that let individuals partake in program investing and basket trading. By May 1996, TransTerra launched an Internet only broker called eBroker, and by November, TransTerra Company became Ameritrade Holding Corporation.
In March 1997, Ameritrade became a publicly held company, and its IPO opened at $15 per share. In August 1999, Accutrade (then a Division of Ameritrade) acquired The R.J. Forbes Group, Inc. Ameritrade formed Freetrade in November 2000, which provided commission-free equity market orders. Freetrade was later replaced by Ameritrade Izone, which offered $5 equity market orders, though it no longer exists. In 2001, Ameritrade made two acquisitions: the February acquisition of TradeCast, giving Ameritrade a presence in the business-to-business arena, and the September acquisition of National Discount Brokers Corporation, adding $6.3 billion in client assets.
In 2002, Ameritrade merged with Datek Online Holdings Corporation, and changed commissions to $10.99 from $8 for market orders and $12 for limit and stop orders. Ameritrade purchased Mydiscountbroker.com in June 2003, and client accounts reached 3 million. In 2004, Ameritrade completed the purchase of Bidwell and Company in January, BrokerageAmerica in February, Investex in May and JB Oxford and Company in October. As of August 2007, there were reports suggesting that Ameritrade was engaged in merger talks with E*TRADE.
In 2008, long-time CEO Joe Moglia announced he would be vacating the CEO position in the upcoming fall after seven years to pursue other interests. Fred Tomczyk, the former COO, was named his successor and took over in September 2008. Rumors started that the company was going to move its headquarters out of the Omaha area after Moglia took over the Chairman position from founder and former CEO J. Joseph Ricketts. With the departure of Ricketts, who founded the company in Omaha, the company for the first time in its history had no members from the founding family on its management team, outside of the two that remained on the Board of Directors. Tomczyk further strengthened the rumors when he stated that he would not be moving to Omaha, but rather staying in the New York City area, where he is based. However, those rumors were put to rest when in October 2008 plans were unveiled for the new TD Ameritrade headquarters in Omaha. The new headquarters would consolidate the call center and corporate offices together into one building. The new building was planned for development in the Old Mill area of Omaha, with a scheduled completion date of 2013. Tomcyzk later confirmed that the company considered moving out of the Omaha area, but decided to stay because of the large number of employees based in Omaha.
Tomczyk announced on June 10, 2009, that the name of the new ballpark will be TD Ameritrade Park Omaha. He had also made a statement that morning that this move is a sign that the company will continue to be headquartered in Omaha. TD Ameritrade will be paying an average of $1 million a year for the naming rights. The NCAA has also mentioned that they are interested in talking with the company about a corporate sponsorship.
Acquisition of Thinkorswim Group Inc.
On January 7, 2009 TD Ameritrade acquired Thinkorswim Group Inc. (NASDAQ:SWIM), including its INVESTools Investor Education division, in a cash and stock deal valued at approximately $606 million. The transaction aimed to advance TD Ameritrade’s growth strategy on the trading side of the business.
Acquisition of TD Waterhouse USA
On January 24, 2006, Ameritrade Holding Corporation acquired TD Waterhouse USA from TD Bank Financial Group. Following the acquisition, it renamed itself TD Ameritrade. TD Ameritrade is one of the largest online brokerages, with 7.2 million client accounts and $225 billion in client assets. Revenue and net income are expected to increase to $1.8 billion and $557 million, respectively. TD Bank now owns 39% of TD Ameritrade, and purchased Ameritrade’s Canadian brokerage operations for $60 million cash. As part of the acquisition, Ameritrade investors received a special one-time $6 dividend, funded from Ameritrade borrowings and excess cash contributed to TD Waterhouse USA by TD Bank. TD Bank will limit their ownership of TD Ameritrade to 45% for up to ten years after the acquisition, while founder J. Joseph Ricketts will limit his family’s ownership of TD Ameritrade to 29% for ten years after the acquisition. Ameritrade CEO Joe Moglia became the CEO of TD Ameritrade.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “joerickettsmedia“