 | |
.jpg) FormerCorporate headquarters, inOmaha, Nebraska | |
| Company type | Private |
|---|---|
| Nasdaq: AMTD | |
| Industry | Financial services |
| Founded | 1975; 50 years ago (1975) (as First Omaha Securities) |
| Founder | Joe Ricketts |
| Defunct | 2024 (2024) |
| Fate | Acquired byCharles Schwab Corporation and shut down |
| Headquarters | Omaha, Nebraska, United States |
Key people | Steve Boyle (Interim president and CEO) |
| Services | Stockbroker Electronic trading platform |
| Revenue |  $4.358 billion (Q3 2020) |
| $1.930 billion (Q3 2020) | |
| $1.393 billion (Q3 2020) | |
| Total assets |  $54.394 billion (2020) |
| Total equity | $9.568 billion (Q3 2020) |
Number of employees | 8,939 (2020) |
| Parent | Charles Schwab Corporation |
| Website | Archived official website at theWayback Machine (archive index) |
| Footnotes / references [1] | |
TD Ameritrade Holding Corporation was astockbroker that offered anelectronic trading platform for thetrade offinancial assets. The company was founded in 1975 asFirst Omaha Securities. In 2006, it acquired the United States operations ofTD Waterhouse fromToronto-Dominion Bank and was renamed TD Ameritrade. In 2020, TD Ameritrade was acquired byCharles Schwab Corporation.
In 1975, the company was founded as First Omaha Securities byJoe Ricketts.[2] In 1983, Ameritrade Clearing Inc. was established as acentral counterparty clearing broker.[3] In 1988, the company introduced the first quote and order entry system via thepush-button telephone.[3]
In March 1997, the company became apublic company via aninitial public offering.[4] In 2006, Ameritrade purchased the American operations ofTD Waterhouse fromTD Bank Group. The combined company was renamed TD Ameritrade, and TD Bank Group was given a 39% stake in the company. As part of the deal, Ameritrade sold its Canadian operations to TD Bank who merged them with TD Waterhouse Canada.[5]
In January 2009, TD Ameritrade acquiredthinkorswim in a cash and stock deal valued around $606 million.[6][7][8] In 2013, the company opened a $250 million headquarters in Omaha.[9] In 2017, the company acquired the stock brokerage division ofScottrade.[10][11][12][13] In April 2018, TD Ameritrade andHavas placed the first advertisement inserted within thebitcoinblockchain.[14]
In 2020,Charles Schwab Corporation acquired TD Ameritrade and the platform was shut down in May 2024 after all accounts were transitioned.[15][16][17]
In May 2008, CEOJoe Moglia vacated the CEO position, becoming Chairman. He was succeeded as CEO by COOFredric Tomczyk.[18][19] In 2016, Tomczyk retired as CEO and was succeeded by Tim Hockey.[20] In 2020, CEO Tim Hockey resigned amid a disagreement with the board relating to the growth of the company.[21][22] In July 2020, Joe Moglia retired from his role as Chairman of the Board of TD Ameritrade.
| # | Year | Company | Ref(s). |
|---|---|---|---|
| 1 | 1995 | K. Aufhauser & Company, Inc. | [3] |
| 2 | September 1996 | TransTerra | [23][24][25] |
| 3 | February 2001 | TradeCast | [26][27] |
| 4 | July 2001 | National Discount Brokers | [28][29] |
| 5 | September 2002 | Datek | [30][31] |
| 6 | June 2003 | MyDiscountBroker.com | [32] |
| 7 | January 2004 | Bidwell | [33] |
| 8 | February 2004 | BrokerageAmerica | [34] |
| 9 | October 2004 | JB Oxford and Company | [35] |
| 10 | January 2006 | TD Waterhouse - U.S. brokerage division | [36][37] |
| 11 | February 2008 | Fiserv brokerage unit | [38] |
| 12 | January 2009 | Thinkorswim | [6][7][8] |
| 13 | September 2017 | Scottrade | [10][11][12][13] |
In November 2007, the company reported thathackers gained access to most of its clients' names,Social Security numbers, dates of birth, addresses, phone numbers, and trading activity.[39][40] In 2011, after being sued in aclass action, the company settled by agreeing to compensate customers that were victim to identity theft between $50 and $2,500 each.[41] The settlement was criticized for netting the attorneys almost as much money as the victims.[42] In 2020, customer login information was being sold on thedark web.[43]
In 2009, TD Ameritrade settled a lawsuit alleging it had marketedauction rate securities as short-term investments. The settlement included a $456 million payment and the buyback of the securities, compensating investors for losses.[44][45][46]
The company and its registered advisors recommended to its customers to invest cash holdings in amoney market fund that was an affiliate of theReserve Primary Fund and the fund gained approximately $1 billion in assets as a result of such marketing by the company. It also represented that an affiliated fund, the Reserve Yield Plus, was a safe money market fund, when it actually was a bond fund. The company receivedcommissions for steering customers. In September 2008, during the2008 financial crisis, as a result of holdings in securities ofLehman Brothers, theReserve Primary Fund was forced tobreak the buck and $1 billion in cash equivalents of TD Ameritrade clients were frozen and the Reserve Yield Plus declined in value. The company was accused of having aconflict of interest as a result of commissions that it received, for having poormarketing ethics, and for misrepresenting the safety of the investments. The company was named in class action lawsuits by its customers and theU.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.[47][48][49][50][51][52][53][54][55]
In September 2022, theReserve Bank of India (RBI), India's central bank, released a list of 34 forex trading online platforms, in which TD Ameritrade was listed as an illegal platform in India.[56]
The company owned the naming rights to thebaseball field TD Ameritrade Park Omaha, for which it would pay an average of $1 million a year for a twenty-year contract period starting in 2011.[57] After the acquisition by Charles Schwab Corporation, they retained ownership of the naming rights; thebaseball venue was subsequently renamedCharles Schwab Field Omaha.
{{cite news}}: CS1 maint: multiple names: authors list (link)
Online brokerages | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Companies |
| ||||||||||||
| Concepts | |||||||||||||
