The Best Just Got Better: TD Ameritrade Introduces $0 Commissions for Online Stock, ETF and Option Trades
October 01 2019 - 06:13PM
Business Wire
TD Ameritrade Holding Corporation (Nasdaq: AMTD) announced today
that its U.S. brokerage firm will eliminate commissions for its
online exchange-listed stock, ETF (domestic and Canadian), and
option trades, moving from $6.95 to $0, effective Thursday Oct. 3,
2019. Clients trading options will now pay $0.65 per contract with
no exercise and assignment fees.
“We are committed to giving our clients the best possible
investing experience, with cutting-edge technology and
award-winning investor education and service teams. And now, that
experience just got better,” said Tim Hockey, president and chief
executive officer of TD Ameritrade. “We’ve been taking market share
with a premium price point, and with a $0 price point and a level
playing field, we are even more confident in our competitive
position, and the value we offer our clients.”
For nearly 45 years, TD Ameritrade has pioneered trading and
investing experiences that continually push the envelope of what
clients expect from their brokerage firm. From the first touch-tone
phone trade to the first mobile trade, the company is committed to
exploring new opportunities that deliver easy, personal, and above
all enlightening experiences for its clients including:
- thinkorswim, the best-in-class trading platform, rated #1 by
Stockbrokers.com four years in a row;
- A price improvement rate better than its competition;1
- Award-winning investor education and service teams; and
- An extensive branch network.
“This is great news for our clients, and thanks to the diversity
of our business model, we’re able to make it a reality,” said Steve
Boyle, chief financial officer, TD Ameritrade. “We expect this
decision to have a revenue impact of approximately $220-240 million
per quarter, or approximately 15-16 percent of net revenues, based
on June Quarter fiscal 2019 revenue. We’ll have more information
about our fiscal 2020 plan when we release fourth quarter earnings
later this month.”
Rates will be effective for TD Ameritrade retail clients, as
well as clients of independent registered investment advisors that
utilize TD Ameritrade Institutional. A final pricing schedule will
be available on Oct. 3, 2019.
Source: TD Ameritrade Holding Corporation
About TD Ameritrade Holding Corporation TD Ameritrade
provides investing services and education to more than 11 million
client accounts totaling approximately $1.3 trillion in assets, and
custodial services to more than 7,000 registered investment
advisors. We are a leader in U.S. retail trading, executing an
average of approximately 800,000 trades per day for our clients,
more than a quarter of which come from mobile devices. We have a
proud history of innovation, dating back to our start in 1975, and
today our team of 10,000-strong is committed to carrying it
forward. Together, we are leveraging the latest in cutting edge
technologies and one-on-one client care to transform lives, and
investing, for the better. Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories at Fresh
Accounts.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
(www.FINRA.org) / SIPC (www.SIPC.org)
1 Covers market orders executed between April and June 2019 in
exchange-listed stocks 1-1,999 shares in size. Statistics provided
by S3 Matching Technologies, which is not affiliated with TD
Ameritrade. Comparisons based on publicly available information,
including published rates of Charles Schwab, Fidelity, and
E*Trade.
Price improvement is not guaranteed. Price improvement
percentage is calculated by dividing executed market orders
receiving price(s) better than the National Best Bid or Offer
(NBBO) at the time of order routing by the total number of orders
executed. Price improvement savings is the difference between the
order execution price and the NBBO at the time of order routing,
multiplied by executed shares.
Safe Harbor This document contains forward-looking
statements within the meaning of the federal securities laws. We
intend these forward-looking statements to be covered by the safe
harbor provisions of the federal securities laws. In particular,
forward-looking statements contained in this discussion include our
expectations regarding: the effect of client trading activity on
our results of operations; the effect of changes in interest rates
on our net interest spread; the amount of net revenues; average
commissions per trade; the amounts of total operating expenses and
advertising expense; our effective income tax rate; our capital and
liquidity needs and our plans to finance such needs; and our plans
to return capital to stockholders through cash dividends and share
repurchases. These statements reflect only our current expectations
and are not guarantees of future performance or results. These
statements involve risks, uncertainties and assumptions that could
cause actual results or performance to differ materially from those
contained in the forward-looking statements. These risks,
uncertainties and assumptions include, but are not limited to:
economic, social and political conditions and other securities
industry risks; interest rate risks; liquidity risks; credit risk
with clients and counterparties; risk of liability for errors in
clearing functions; systemic risk; systems failures, delays and
capacity constraints; network security risks; competition; reliance
on external service providers; new laws and regulations affecting
our business; net capital requirements; extensive regulation,
regulatory uncertainties and legal matters; difficulties and delays
in integrating the Scottrade Financial Services, Inc. ("Scottrade")
business or fully realizing cost savings and other benefits from
the acquisition; disruptions from the Scottrade acquisition; or
other factors making it more difficult to maintain relationships
with employees, customers, other business partners or governmental
entities; the inability to achieve synergies or to implement
integration plans and other consequences associated with other
acquisitions; and the other risks and uncertainties set forth under
Item 1A. – Risk Factors of the Company's annual report on Form 10-K
for the fiscal year ended September 30, 2018. These forward-looking
statements speak only as of the date on which the statements were
made. We undertake no obligation to publicly update or revise these
statements, whether as a result of new information, future events
or otherwise, except to the extent required by the federal
securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20191001006211/en/
Becky Niiya Director, Corporate Communications (402) 574-6652
rebecca.niiya@tdameritrade.com
Jeffrey Goeser Managing Director, Investor Relations (402)
597-8464 jeffrey.goeser@tdameritrade.com
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