TD Ameritrade
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| TD Ameritrade | |
| |
| Founded | 1975 |
|---|---|
| Headquarters | Omaha, NE |
| Key People | CEO and Chairman-elect Joe Moglia; President, COO and CEO-elect Fred Tomczyk |
| Products | Discounted online brokerage services |
| Web site | http://www.amtd.com/ |
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.
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Contents |
History
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.[1]
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.[2] 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.
Top Ranking
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.[3] 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
Key People
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.[5] He received a base annual salary of $1 million and up to $9 million in peformance-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 7 years at TD Bank Financial Group as part of its executive leadership team.[6]
Latest Results
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.[7] Average daily trades grew 23 percent to an industry-leading 312,000.
References
- ↑ TD Ameritrade History. TD Ameritrade. Retrieved on June 5, 2008.
- ↑ Ameritrade-TD Waterhouse merger took a long time. San Francisco Chronicle. Retrieved on June 5, 2008.
- ↑ Tools of the Trade. Barron's. Retrieved on June 5, 2008.
- ↑ TD Ameritrade names COO Fred Tomczyk as next CEO. Associated Press. Retrieved on June 5, 2008.
- ↑ Joe Moglia to Assume TD AMERITRADE Chairmanship in Fiscal 2009; Fred Tomczyk Named Next CEO. TD Ameritrade. Retrieved on June 5, 2008.
- ↑ TD Ameritrade's Moglia to Cede CEO Role. TheStreet.com. Retrieved on June 5, 2008.
- ↑ TD AMERITRADE EPS Up 35 Percent. TD Ameritrade. Retrieved on June 5, 2008.
