TD Ameritrade's first-quarter fiscal 2014 earnings beat the Zacks
Consensus Estimate and were higher than the prior-year quarter
figure. Results were primarily aided by top-line growth.
Additionally, a rise in total client assets and daily average
client trades were the growth drivers. However, results reflected
undisciplined expense management. The company is focused on
improving its trading and investing business through product
innovation, enhanced customer service as well as cost-effective
marketing and sales. We remain cautious about volatile trading
volumes amid a challenging macroeconomic environment. However, IDA
agreements to mitigate the regulatory impact will likely benefit
the company in the near term.
Founded in 1971 in California and headquartered in Omaha,
Nevada, TD Ameritrade Holding Corporation provides securities
brokerage services and technology-based financial services to
retail investors, traders, and independent registered investment
advisors (RIAs) in the United States.
The company's offerings include TD Ameritrade for self-directed
retail investors TD Ameritrade Institutional, which provides
brokerage and custody services to independent RIAs and their
clients thinkorswim that offers a suite of trading platforms
serving self-directed and institutional traders, and money managers
and Investools, which provides investor education products and
services for stock, option, foreign exchange, futures, mutual fund,
and fixed-income investors Amerivest, an online advisory service
that develops portfolios of exchange-traded funds to help long-term
investors pursue their financial goals and TD Ameritrade Corporate
Services, which provides self-directed brokerage services to
employees and executives of different corporations.
The company provides these services through its network of
retail branches, mobile trading applications and the Internet.
Further, TD Ameritrade has interactive voice response facility and
registered representatives to provide services over the phone.
Notably, Canada-based Toronto-Dominion Bank (TD Bank) holds 41%
stake in TD Ameritrade (as of Dec 31, 2014). Ameritrade became TD
Ameritrade when it acquired TD Waterhouse USA in 2006. It was then
that TD Bank received a stake in TD Ameritrade.
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