TD Ameritrade Holding Corp.
|Key People||CEO and Chairman-elect Joe Moglia; President, COO and CEO-elect Fred Tomczyk|
|Products||Discounted online brokerage services|
TD Ameritrade has been one of the world's largest and highest-rated online discount brokerages since its formation in 2006 through a merger of two industry powerhouses. The brokerage recently announced a transfer of power to the current COO set for late in 2008.
TD Ameritrade began life in 1975 as discount brokerage firm First Omaha Securities, Inc. and was later renamed First National Brokerage Services, then Accutrade and finally Ameritrade. In 1995 Ameritrade Holding Corp. began its evolution to online brokerage by purchasing K. Aufhauser & Co., which the year before had become the first stock broker to introduce Web-based trading, and relaunching its services as Ameritrade.
In mid-2005 Ameritrade announced the $2.9 billion acquisition of rival online broker TD Waterhouse, known for its television commercials featuring popular "Law and Order" actor Sam Waterston, after two years of negotiations. The merged TD Waterhouse - which retained Waterston as its pitch man - gained a combined $225 billion in client assets at the time, far below industry leader Charles Schwab's more than $1 trillion but number one in average daily trades with 240,000 to Schwab's 180,000.
In January of 2008, TD Ameritrade Holding Corp. (AMTD.O) said it would buy thinkorswim Group Inc. (SWIM.O) for $606 million in order to pad its online trading business and establish it in the fast-growing area of options and futures trading. The stock and cash deal would give shareholders of thinkorswim 0.3980 of a TD Ameritrade share plus $3.34 in cash for each of their shares. TD Ameritrade planned to pay $225 million of cash and issue 28 million shares in the transaction. TD Ameritrade management said on a conference call that it expected the deal to boost fiscal 2010 earnings by 3 percent to 7 percent, and by 10 percent to 15 percent after thinkorswim was fully integrated. The deal was expected to yield $55 million in cost savings. It was expected to close within six months, pending thinkorswim shareholder approval.
In 2007 TD Ameritrade gained the highest rating for Web-based online brokers from respected business publication Barron's, which gave the broker's proprietary order-routing technology high marks for its ability to discern many of the buyer's wishes. It also praised TD Ameritrade's Streamer Suite Console, aimed at active traders, specifically mentioning its ETF center.
Barron's Top 10 Web-based Brokers 2007
- 1 TD Ameritrade
- 2 optionsXpress
- 3 Fidelity Investments
- 4 Muriel Siebert
- 5 TradeKing
- 6 E*Trade
- 7 Charles Schwab
- 8 OptionsHouse
- 9 Scottrade
- 10 Firstrade
|Joe Moglia||Board Chairman, former CEO|
|Fred Tomczyk||CEO, former COO|
TD Ameritrade CEO, 59-year-old Joe Moglia stepped from daily managerial responsibilities to become board chairman in October 2008. He was replaced in the top job by current president and COO Fred Tomczyk.
Under Moglia's leadership since becoming CEO in 2001, the brokerage increased its market capitalization from $700 million to more than $12 billion in 2008 and acquired nine brokerages including Datek Online in 2002 and TD Waterhouse. He received a base annual salary of $1 million and up to $9 million in performance-based bonuses.
Tomczyk joined TD Ameritrade in 2007 as chief operating officer, responsible for technology, retail sales and registered investment advisers. He had spent the previous seven years at TD Bank Financial Group as part of its executive leadership team.
TD Ameritrade contiuned its recent strong financial performance into the first calendar quarter of 2008, its second fiscal-year quarter. The brokerage increased it earnings per share 35 percent year-on-year to $0.31 as spread-based asset balances rose seven percent to $31 billion and fee-based balances jumped 47 percent $71 billion. Average daily trades grew 23 percent to an industry-leading 312,000.
- ↑ TD Ameritrade History. TD Ameritrade.
- ↑ Ameritrade-TD Waterhouse merger took a long time. San Francisco Chronicle.
- ↑ TD Ameritrade To Buy Thinkorswim For $606 Mln. Reuters.
- ↑ Press Release. TD Ameritrade.
- ↑ Tools of the Trade. Barron's.
- ↑ TD Ameritrade names COO Fred Tomczyk as next CEO. Associated Press.
- ↑ Joe Moglia to Assume TD AMERITRADE Chairmanship in Fiscal 2009; Fred Tomczyk Named Next CEO. TD Ameritrade.
- ↑ TD Ameritrade's Moglia to Cede CEO Role. TheStreet.com.
- ↑ TD AMERITRADE EPS Up 35 Percent. TD Ameritrade.