US-based brokerage firm TD Ameritrade, is a broker-dealer subsidiary of TD Ameritrade Holding Corporation. The company’s fiscal first-quarter revenue rose slightly from a year earlier even as it slashed its trading commissions to zero.
Net revenues at Nebraska-based company was $1.48 billion in three months. That was through March 2020, up from $1.45 billion in the Q1 2019. This figure is also 15 percent higher from the $1.29 billion it booked in the fourth quarter.
Looking at its bottom-line metrics, the brokerage firm earned $446 million, or $0.82 per share. That’s down from $499 million or $0.89 per share in the same quarter last year. Adjusted earnings for the quarter were $0.86 per share, down from $0.93 per share a year ago.
Analysts expected the company to report earnings per share of $0.87 on revenues of $1.41 billion.
TD Ameritrade stock fell 27 percent year-to-date. But most of the decrease came weeks after the commission change was announced. In after-hours trading following the earnings report, the stock was slightly up to sell for $37.52 on Wednesday.
TD Ameritrade Attract Younger Investors with No Fee Trading
Trading volumes and other operating metrics at the brokerage surged in the first quarter. This was after fears over the impact of the spreading coronavirus sent almost all tradable assets reeling.
The solid metrics came as volatility picked up from multi-year lows last year. It has set a fresh record high for net new client assets at $45 billion. It split 58 percent retail and 42 percent institutional at an annualized growth rate of 13 percent.
Other business highlights also present a record number for new funded retail accounts at 608,000. They also show daily average revenue trades, DARTs, at 2.1 million. Total client assets jumped to $1.2 trillion.
TD Ameritrade and several US discount brokers, have been enhancing their offering to attract digitally savvy and younger investors. A slew of micro-investing apps like Robinhood now offer mobile letting beginners buy and sell public stocks without trading fees.