Td Ameritrade is an online stock trading company that was established in 1971. In 2006, TD Ameritrade acquired the U.S. operations of Toronto-Dominion Bank, making it the second-largest brokerage in the United States. The company changed its name to TD Ameritrade, and in July of this year, TD Ameritrade was acquired by the Charles Schwab Corporation.
TD Ameritrade provides trading and investing services to over 11 million clients, and the company also offers custodial services to over 6,000 independent registered investment advisors. The company reports that over half of its client accounts are managed through TD Ameritrade. As the industry leader, the company continues to thrive and is currently the third-largest brokerage in the United States.
In addition to providing stock trading, TD Ameritrade also offers margin lending and cash management services. The company generates revenue from interest on margin balances, commissions on order execution, and payment for order flow. The company is part of the Charles Schwab Corporation and plans to merge with the financial services giant in 2023. TD Ameritrade is headquartered in Omaha, NE and has offices in New Jersey and Southlake, Texas.
The merger of Charles Schwab and TD Ameritrade provides a huge scale advantage to both companies. This acquisition will benefit Schwab’s long-term growth by reducing its operating expenses as a percent of client assets. The combined company will invest more in enhanced customer experience capabilities, which will benefit its employees, customers, and stockholders. These are all important questions to ask.