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TD Ameritrade Strategically Expands Trading Platform

January 3, 2012
[ by Melanie Gretchen ] TD Ameritrade has added some "bells and whistles" to its trading platform, Trade Architect, aimed at improving customer interfaces, while providing more information at customers' disposal.  What's so significant? Savior for Brokers. Customers have reduced their trading - starting earlier this year and can possibly continue throughout 2012 or longer - scared off by tough economic conditions and increased market volatility.  Reduced investing and trading has reduced retail revenues - commissions, mark-ups/mark-downs, along with margin interest revenues.  The decline in customer trading, coupled with significantly lower margin interest income [C-I Note: With rates hovering close to 0%, firms are not going to generating a lot of revenues from margin.] has significantly hurt the bottom lines of retail brokerage firms. Getting back to TD Ameritrade's strategy, the firm seeks to attract, or to steer existing customers to become, "global traders."  As termed by AMTD's chief derivatives strategist, providing such comprehensive platforms for investment decision-making is likely to be a win-win situation for firm brokers and customers.  Forbes considers that AMTD has a better chance of attracting new customers, particularly traders, while retaining existing customers. Platform Enhancements. Toward an end-to-end platform for research and trading decisions, the new features include: (i) real time screens defined by the client; (ii) ready access to premium investment research by third parties like Standard and Poor’s; and, (iii) investor communities to follow other members' ideas and strategies. TD Ameritrade is cautiously optimistic, given the improved investing and trading environment of the third quarter of 2011.  Earnings by brokerages were bolstered by trading commissions, as market instability created by Europe and U.S. sovereign debt downgrade led to record high average daily trades. [C-I Note: Which goes to show, 'An educated trader is Ameritrade's best customer.'] For further details, go to [Forbes - 12/30/11].