TD Ameritrade reached new 2019 Record
TD Ameritrade has recently released its financial results for the 2019 fiscal year. The Nebraskan firm had a very successful year. Its revenue increased by 10%, compared to 2018. The profit has now reached $6 billion.
In its report, the broker revealed that new clients brought in a record number of assets, in total $93 billion.
The additional funds also took $1.3 trillion of property held by TD Ameritrade.
The president and chief executive officer of TD Ameritrade, Tim Hockey made stated that he was incredibly proud of his team. Tim said that this fiscal year 2019 was another successful year for TD Ameritrade. The broker has been working hard on enhancing their clients’ investing experience.
The president of TD Ameritrade has highlighted the fact that the company has accomplished a lot already. It took full responsibility to create and deliver the best financial targets, diversify revenue, and increase operational efficiency.
TD Ameritrade’s strategy: Short-term decline, long-term growth
The broker has recently started offering new commission-free services. The fiscal 2019 report indicated between 15 to 16 percent of the company’s revenue derived from trading commissions. That equated to approximately $230 million per quarter. However, why is TD Ameritrade losing such a substantial source of income?
Tim answers quite simply; he says that the company aims to compete on the value of the offering with exceptional client experience. The company still offers award-winning platforms, cutting-edge technology, a full range of tools, and brilliant investor education.
However, the move to the commission-free trading platform is likely to dent TD Ameritrade’s near-term revenues. The broker stated that it expected a decline in revenue during the first quarter of 2020. Due to organic growth, things would pick up again afterward. The company will expect results to provide significant shareholder value.