TD Ameritrade stock price is down 21.63%

ZBZB said:
Isn't it the hft market makers like citadel that are paying for order flow?
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They do but their buying power only amounts to about 20% of order flow payments. The rest comes from the exchanges.
 
S2007S said:
Wonder how low this stock goes. Should research how much revenue comes from commission trading.
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From CNBC this morning for Ameritrade:
Total Revenue from trading commissions: 8%
Total Revenue from interest on accounts: 57%
 
DaveV said:
From CNBC this morning for Ameritrade:
Total Revenue from trading commissions: 8%
Total Revenue from interest on accounts: 57%
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Yeah, but that 8% is $700 million in yearly revenue that just went *poof*.
 
DaveV said:
From CNBC this morning for Ameritrade:
Total Revenue from trading commissions: 8%
Total Revenue from interest on accounts: 57%
More...


Not as high as I thought. With only 8% of revenue derived from commissions they should have been the first to offer free trading as soon as they saw Robinhood as a threat. They would have probably opened up millions of accounts and made interest on money sitting in accounts . Too late now
 
S2007S said:
Not as high as I thought. With only 8% of revenue derived from commissions they should have been the first to offer free trading as soon as they saw Robinhood as a threat. They would have probably opened up millions of accounts and made interest on money sitting in accounts . Too late now
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From https://www.amtd.com/news-and-stori...orts-Record-Fiscal-2018-Earnings/default.aspx

For fiscal year 2018:

Commissions: $1.51B ($7.45*202.8)
Total operating income: $1.89B
Net income: $1.47B

Dropping commissions to 0 is going to HURT.
 
is this merely a reaction to business model switch or could this be interpreted as the top of Levered (levered to historic levels currently) Retail trading which signals a market top?
 
terr said:
From https://www.amtd.com/news-and-stori...orts-Record-Fiscal-2018-Earnings/default.aspx

For fiscal year 2018:

Commissions: $1.51B ($7.45*202.8)
Total operating income: $1.89B
Net income: $1.47B

Dropping commissions to 0 is going to HURT.
More...

Wow I knew it was bad - but I didn't realise it was that bad.

DaveV said:
From CNBC this morning for Ameritrade:
Total Revenue from trading commissions: 8%
Total Revenue from interest on accounts: 57%
More...

The 8% figure provided earlier in the thread does not sound accurate.

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Most recent figures for Q3 ended 30 June 2019 here:
https://www.sec.gov/Archives/edgar/data/1173431/000119312519198972/0001193125-19-198972-index.htm (index)
https://www.sec.gov/Archives/edgar/data/1173431/000119312519198972/d780268dex991.htm (PR)

For the quarter:
51.9 million trades * $6.92 avg commission = $359.14 million

For the quarter:
Net revenues $1,491 million

Operating expenses $771 million

Operating income $720 million

For a start, the $359 million is 24% of total revenue.

If we reduce that to zero (and make no changes to anything else, such as higher order routing revenue), then the $359 million commissions is almost exactly half of their quarterly operating income.
 
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Getting crazy with commissions dropping. With these free amazing platforms and soon to be zero commissions across the board its getting harder to make fat profits.
 
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