TD Ameritrade 300

TD Ameritrade Assets Under Management (AUM)

TD Ameritrade total assets under management. TD Ameritrade AUM for 2018. TDA 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 $1.1 trillion (up 45% year over year)
Funded accounts 6,950,000
Average # of trades per day 511,000 (up 10 percent year over year)
Annual revenue $3.7 billion (60% of which were asset-based)

The figures are according to the company’s most recent annual report, which is required under SEC regulations. From the company’s $3.7 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.


Strengths and Weaknesses of Large-Size Firms

Most large brokerage firms manage their own mutual and exchange-traded funds. TD Ameritrade, despite being a large-size firm, does not offer its own funds.

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's Thinkorswim Overview

The Thinkorswim (TOS) platform is a versatile trading and investment research tool with a multitude of features. TOS is both a downloadable platform application and a brokerage account that offers financial services and educational tools. This platform is owned by and exists as an extension of TD Ameritrade. There is no minimum deposit required to open an account with Thinkorswim. However, to trade options a minimum balance of $2,000 is required. There is a minimum of $500 for electronic deposit transfers. Thinkorswim has been designed to have consistent commissions across the board. For most trades, such as stocks, ETFs and options, there is a flat fee of $6.95. Active traders can call customer service and negotiate lower rates.

One of the most valued features of Thinkorswim is the Paper Money account. This option allows users to use a secondary account to trade virtual money. This is very beneficial because it allows users to see how the software works and to test new ideas and strategies without needing to risk real money. The downside to a Paper Money account is that the orders are executed immediately. This is contrary to the actual live market where contracts are not always executed immediately and may give investors unrealistic expectations of trading dynamics. Another drawback is that the Paper Money account starts with $100,000. This amount is higher than an average investors account and may give users too much undeserved confidence.

In summary, the TOS platform is one of the most well known investing tools on the market. The robust and highly customizable tools and charts give investors the data and perspective that they need. Although all of the extra features can seem intimidating, there are many free educational resources that can help users learn the TOS platform. Thinkorswim customers also get full access to an impressive selection of valuable additional services offered through the parent company - TD Ameritrade.