My online stock broker, TD Ameritrade (formerly Ameritrade – now TD Ameritrade, since the merger between Ameritrade and TD Waterhouse) has just put their newly redesigned website online last Friday. This is the first big change and big news we have seen from TD Ameritrade recently.
Big News from TD Ameritrade TD Ameritrade announced on Monday lower trading commissions! This is great for traders and investors alike. We can now save a little bit of money on each trade. TD Ameritrade’s new commission fee per trade is $9.99, lowered from $10.99. I am one happy trader! TD Ameritrade clients now save 9.10% on commissions fees – the difference between 9.99 and 10.99 being 9.10%. A $1 drop in commissions may not seem like much to the average trader, but for those placing a lot of trades, the $1 in savings adds up quickly.
TD Ameritrade: Strong Earnings TD Ameritrade also announced earnings on Monday. Second quarter earnings were $172.8 million, or 30 cents per share. Last year’s second quarter earnings were $77.4 million, or 19 cents per share. TD Ameritrades earnings have doubled from last year’s second quarter.
TD Ameritrade Stock Down 9% on Monday The earnings doubled, but the stock price fell over 9%. Why? With the 9% decrease in commissions fees, TD Ameritrade announced a weaker forecast for the coming year, due to less commissions income. My personal opinion is that traders and investors will be more willing to place more trades with lower commissions. We’ll have to wait and see how my opinion plays out during the rest of the year.
TD Ameritrade New Advertisement Blitz I’ve seen new ads for TD Ameritrade on CNBC and on various stock market websites, such as Yahoo! Finance. Once ad on Yahoo! I saw stated “TD Ameritrade – up to 50 free trades + $100 cash”. Earlier on Monday I also saw a similar ad, except it stated “+$500 cash”. I’m sure there are stipulations for receiving $100 or $500 cash, such as a minimum initial investment of $25,000 or perhaps a larger investment. I haven’t read their fine print on the free cash, but I know they’ve been giving free trades to all new TD Ameritrade members, which is still nice.
I’d like to hear your opinions on TD Ameritrade in general, and more specifically their new website, earnings, and advertisement campaign.