TD Ameritrade 300

TD Ameritrade Assets Under Management (AUM)


TD Ameritrade total assets under management. TD Ameritrade AUM for 2017: client assets, brokerage accounts, mutual funds.



TD Ameritrade Assets Under Management (AUM)


TD Ameritrade is a mid-size brokerage firm that specializes in advanced trading technology. The company has over $3 billion in annual revenue and employs over 6,000 people. Although these numbers are impressive, they are not the largest in the industry.

More specifically, the broker-dealer has the following numbers:

Client assets $774 billion
Funded accounts 6,950,000
Average # of trades per day 463,000
Annual revenue $3.3 billion

The figures are according to the company’s most recent annual report, which is required under SEC regulations. From the company’s $3.3 billion in gross revenue, it was able to produce over $800 million in net income for its last fiscal year. It did this with $9.99 commissions. The broker recently lowered its trading fee to $6.95, so TD Ameritrade’s next fiscal year might see a significant decline in both revenue and income.

The company’s balance sheet looks fairly strong with over $28 billion in assets. Its income statement shows annual earnings per share to be $1.59. Of this amount, the company paid 68¢ in dividends.

Most of TD Ameritrade’s revenue comes from commissions and other transaction charges—more than 41% in fact. Fees on deposit accounts generate 28%, while investment product fees produce 11%.

TD Ameritrade recently agreed to purchase rival Scottrade. This transaction will include not only the acquisition of the brokerage division of Scottrade, but also Scottrade Bank by TD Bank.

The broker-dealer is headquartered in Omaha, Nebraska. It operates a nationwide network of branch locations with more than 100 offices. The company does not have a large global presence. It has operations in Luxembourg and the UK. Because of its affiliation with TD Bank, the brokerage house also does business in Canada.

Comparison


TD Ameritrade is smaller than Fidelity, who has almost $6 trillion in client assets. Schwab has nearly $3 trillion, and Vanguard manages $4 trillion. Fidelity has 24 million accounts, nearly 4 times as many as TD Ameritrade.

On the other hand, TD Ameritrade boasts almost as many commissionable trades as Fidelity normally has (slightly more than 500,000). Because TD Ameritrade’s commission is higher than Fidelity’s, TD Ameritrade receives more revenue from trading.

TD Ameritrade’s 6,000 employees makes it quite a bit smaller than Merrill Lynch Wealth Management, which employees 15,000 financial advisors alone. Edward Jones has over 12,000 offices, which dwarfs TD Ameritrade’s branch network.


Strengths and Weaknesses of Mid-size Firms


Most large brokerage firms manage their own mutual and exchange-traded funds. TD Ameritrade, being a mid-size firm, does not offer its own funds. With fewer assets and customers, the firm can’t quite reduce its equity commission to the current low level in the industry, which is $4.95.

On the positive side, TD Ameritrade is large enough to produce its own suite of trading technology, which is quite advanced. Even better, the firm does not maintain any account minimums or trading requirements to use it.


TD Ameritrade Review


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Updated on 5/1/2017.





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