Key Takeaways
- TD Ameritrade started in 1975 as a small brokerage called First Omaha Securities.
- It grew by buying other companies, including TD Waterhouse, thinkorswim, and Scottrade.
- The company faced some legal issues and a major data breach over the years.
- In 2020, Charles Schwab bought TD Ameritrade, and the platform shut down in 2024.
If you’ve ever looked into online trading, chances are you’ve come across the name TD Ameritrade. It became one of the most popular platforms for trading stocks and other investments. But where did it all begin?
Let’s take a look at the history of TD Ameritrade—how it started, how it grew, and what happened to it over the years.
Table of Contents
The Beginning: First Omaha Securities
TD Ameritrade didn’t always go by that name. The company started in 1975 as First Omaha Securities. It was founded by Joe Ricketts in Omaha, Nebraska. At the time, it was a small business helping people buy and sell stocks.
But Ricketts had big ideas. He wanted to use technology to make investing easier and faster.
Moving Into Technology
In 1983, the company created Ameritrade Clearing Inc. This part of the business helped make trades go smoothly and quickly.
Then in 1988, something big happened. The company launched a new service that let people get stock quotes and place orders using a push-button phone. That was a big deal back then.
It meant people didn’t need to call a stockbroker anymore. They could do it themselves. This was one of the early signs that TD Ameritrade was going to be different.
Going Public
In 1997, the company went public. That means it started selling shares of its own stock to investors.
This gave the company more money to grow and make improvements. And it helped TD Ameritrade become a name people started to recognize.
Growing Through Acquisitions
TD Ameritrade didn’t grow by itself. It bought a lot of other companies along the way.
Some of the important ones were:
- K. Aufhauser & Company in 1995
- TransTerra in 1996
- TradeCast and National Discount Brokers in 2001
- Datek Online in 2002
- MyDiscountBroker.com in 2003
- Bidwell and BrokerageAmerica in 2004
Each of these companies helped TD Ameritrade get new customers and new tools.
The TD Waterhouse Deal
In 2006, a major change happened. TD Ameritrade bought the U.S. operations of TD Waterhouse from Toronto-Dominion Bank (TD Bank Group).
This was a huge deal. It gave the new company a lot more customers. It also gave TD Bank a 39% stake in TD Ameritrade.
After the deal, the company changed its name to what we know it as today—TD Ameritrade.
Taking Trading to the Next Level
After the big merger, TD Ameritrade kept improving its platform. In 2009, it bought thinkorswim, a trading platform made for more experienced traders. It had tools for options trading, advanced charts, and real-time data.
This made TD Ameritrade even more appealing to serious investors. By 2013, the company built a new $250 million headquarters in Omaha. That move showed how strong the company had become.
Buying Scottrade
In 2017, TD Ameritrade made another big move. It bought Scottrade, a brokerage based in St. Louis.
This added even more customers and branches to its network. It was a smart way to grow its reach and become even more well-known.
Getting Creative With Blockchain
TD Ameritrade also tried some creative marketing ideas. In 2018, it teamed up with a company called Havas to place an advertisement inside the Bitcoin blockchain. That had never been done before.
It didn’t change how people traded, but it showed that TD Ameritrade wasn’t afraid to try new things.
Who Ran TD Ameritrade?
The people leading TD Ameritrade changed over the years. Joe Ricketts stepped down as CEO in 2008 and became Chairman. Fredric Tomczyk took over as CEO.
In 2016, Tomczyk retired, and Tim Hockey became the new CEO. But in 2020, Hockey left the company after a disagreement with the board. That same year, Joe Moglia also stepped down from his role as Chairman.
These changes happened just before the company went through its biggest shift.
The Schwab Acquisition
In 2020, Charles Schwab Corporation announced that it was buying TD Ameritrade in a $26 billion.
This was a major moment in the world of investing. Two of the biggest brokerage firms were joining forces.
By May 2024, the TD Ameritrade platform was officially shut down. All customer accounts were moved to Schwab.
The name TD Ameritrade may have disappeared, but its impact on the industry is still felt today.
Legal and Security Issues
No big company gets through decades of business without facing some problems. TD Ameritrade was no different.
In 2007, it had a serious data breach. Hackers got access to customer names, Social Security numbers, and more.
The company was sued, and in 2011, it agreed to pay compensation. But the settlement was criticized because lawyers got a large share of the money.
In 2009, TD Ameritrade had to pay $456 million to settle claims about auction rate securities. Customers said they were misled into thinking these were safe, short-term investments.
During the 2008 financial crisis, clients also lost money in a money market fund tied to Lehman Brothers. TD Ameritrade had promoted it as a safe place to park cash. That led to more lawsuits and eventually a settlement with the SEC.
The Companies TD Ameritrade Acquired
Here’s a quick summary of some of the businesses TD Ameritrade bought over the years. These deals helped the company grow faster and offer better services.
| Company Name | Year Acquired |
| K. Aufhauser & Company | 1995 |
| TransTerra | 1996 |
| TradeCast | 2001 |
| National Discount Brokers | 2001 |
| Datek | 2002 |
| MyDiscountBroker.com | 2003 |
| Bidwell | 2004 |
| BrokerageAmerica | 2004 |
| JB Oxford and Company | 2004 |
| TD Waterhouse (U.S. division) | 2006 |
| Fiserv brokerage unit | 2008 |
| Thinkorswim | 2009 |
| Scottrade | 2017 |
These deals helped the company grow faster and offer better services.
What TD Ameritrade Left Behind
Even though the TD Ameritrade name is gone, its influence is still very real.
It helped shape the online trading world. It made investing easier and cheaper for everyday people. It brought powerful tools to casual investors and helped them feel more confident in managing their money.
And thanks to its role in creating platforms and features, its legacy lives on in the tools now offered by Schwab.
Final Thoughts
The story of TD Ameritrade is really about innovation. It’s about seeing where the future is headed and moving fast to get there first.
From a small brokerage in Omaha to a leader in online investing, TD Ameritrade helped millions of people take control of their financial futures.
