TD Ameritrade

TD Ameritrade was founded by Joe Ricketts in Omaha, Nebraska on May 1, 1975, originally as First Omaha Securities, Inc. The brokerage was among the first to offer stock trading services remotely via telephone, which allowed it to quickly gain traction. Throughout its history, TD Ameritrade has expanded through various acquisitions and technological advancements to become a major player in the electronic trading space.

On January 16, 1997, TD Ameritrade went public. The company offered shares to the public and started trading on the Nasdaq exchange under the ticker symbol 'AMTD'. The IPO provided the company with capital to expand its services and invest in technology to improve customer experiences. This move to become publicly traded marked a significant chapter in its history, gaining visibility and increasing its customer base over the subsequent years.

In 2006, Ameritrade completed the acquisition of TD Waterhouse USA, which was the American brokerage operation of the Toronto-Dominion Bank. This significant purchase allowed Ameritrade to boost its discount brokerage services significantly and increased its client assets dramatically. Following the completion of the acquisition, Ameritrade rebranded significantly, adopting the name TD Ameritrade to reflect the new ownership structure and partnership with TD Bank.

On May 10, 2009, TD Ameritrade announced the acquisition of Thinkorswim, a trading platform known for its advanced options trading capabilities. This strategic acquisition allowed TD Ameritrade to enhance its offerings for options and derivatives traders, providing tools and educational resources for a wide range of trading strategies. This move positioned TD Ameritrade as a leader in options trading by integrating Thinkorswim's powerful platform with its existing services.

In September 2016, TD Ameritrade announced its intention to acquire Scottrade, a brokerage company known for its large network of branch offices and strong customer service. The acquisition deal was valued at $2.7 billion and was completed by September 2017. This strategic acquisition greatly expanded TD Ameritrade’s client base and branch network, allowing it to serve clients better with an expanded branch footprint, enhancing its service offerings and presence in the U.S. market.

In April 2018, TD Ameritrade launched the TD Ameritrade Network, an over-the-top financial news and education channel designed to provide investors with insights, news, and education about trading and the financial markets. The network offers a variety of content including live programming, market commentary, and educational segments aimed at helping traders make informed decisions. This venture highlights TD Ameritrade’s commitment to empowering investors with real-time and relevant financial information.

On November 25, 2019, Charles Schwab announced it would acquire TD Ameritrade in an all-stock deal valued at approximately $26 billion. The acquisition aimed to create a financial services giant with more than $5 trillion in client assets, uniting two of the largest firms in the brokerage industry. The merger was expected to lead to significant cost savings and create a more competitive entity in the rapidly evolving financial services market, particularly in light of commission-free trading trends.

On March 9, 2020, TD Ameritrade, along with other big brokerage firms, eliminated commission fees for trading. This move was a part of an industry-wide shift towards zero commission trading, significantly changing the landscape for retail investors. The elimination of commissions opened up investing to a broader audience, contributed to the growing popularity of trading stocks online, and sparked competitive innovations among brokerage firms. This pricing model adjustment was crucial in maintaining competitive offering in the market.

The acquisition of TD Ameritrade by Charles Schwab was officially completed on October 6, 2020. This merger brought together two leaders in the brokerage industry, combining their strengths to offer improved services and capabilities to clients. The integration of these firms is expected to streamline operations and leverage shared technology and resources, benefiting the expanded customer base with more robust financial services offerings and enhanced product capabilities.