Are My Investments At TD Ameritrade Safe?

td-ameritrade.jpgWith the giants of the financial services industry disappearing, you might be wondering how safe your investments at TD Ameritrade are. Here is a communication I received from TD today. Hopefully, it will calm any fears you might have.

“We are aware of the reported events that have taken place over the weekend in the financial services industry. As we learn the details and come to terms with their impact on the nation’s financial markets, we remind our clients, associates and shareholders that neither Lehman Brothers’ bankruptcy nor Merrill Lynch’s sale have any overarching impact or reflect on our firm. Our capital structure and liquidity are strong and stable, and our clients’ assets remain secure. TD AMERITRADE continues to have no exposure to the U.S. real estate market and the associated complex financial securities that are at the root of this liquidity crisis.

TD AMERITRADE, Inc., member FINRA ( /SIPC (, receives clearing custodial services from TD AMERITRADE Clearing, Inc., member FINRA/SIPC. TD AMERITRADE, Inc. and TD AMERITRADE Clearing, Inc. are subsidiaries of TD AMERITRADE Holding Corporation.

Our capital structure and liquidity are strong and stable, and our clients’ assets are secure. It is unfortunate that a number of firms have failed, or have struggled, over the course of the last 18 months as the result of investments tied to the nation’s struggling real estate markets. We do have immaterial exposure through normal business operations to Lehman Brothers’ broker-dealer subsidiary, but we are appropriately collateralized and expect the Lehman Brothers broker-dealer subsidiary to continue operating.

TD AMERITRADE’s capital structure and liquidity are strong and stable. TD AMERITRADE has no exposure to the U.S. real estate market and the associated complex financial securities that are at the root of this liquidity crisis. The collateral backing our liquidity is in cash or U.S. securities, which are available and marked-to-market daily. The collateral backing our liquidity is not in real estate-related securities (check the source for more details). The credit and liquidity issues currently impacting other firms have not impacted our liquidity, which we monitor daily.

In addition, TD AMERITRADE does not take proprietary risk on its balance sheet. Our clear, transparent business model and commitment to conservative fiscal management has helped us avoid the troubles other firms have experienced from investment risks. “

If you have any further questions, please drop me an email or give me a call.

Share Button
Print Friendly, PDF & Email

8 Responses to Are My Investments At TD Ameritrade Safe?

  1. Maggie September 22, 2008 at 11:08 am #

    Why do you think the CEO Joseph Moglia has been selling tens of thousands of share of TD Ameritrade stock? Check the info here:

    Is this normal activity?

  2. Rick Kahler September 22, 2008 at 1:30 pm #


    I spoke with TD a minute ago and they said it was perfectly normal. Now, not to alarm you, but no one who worked at Lehman, except the top brass, had any idea they were in trouble. So, I can’t put a lot of stock in what any employee says. What I can say is your brokerage accounts are segregated, TD does not underwrite or do the type of investment business that the wirehouses do, and SPIC insures accounts up to $500,000.

  3. Linda Appleby March 17, 2009 at 8:36 am #

    Hey Rick..I have 50,000 and am scared to do anything with. I noticed ameritrade is offering 3% on a three month cd…whatcha think???

  4. Rick Kahler March 17, 2009 at 10:15 am #

    TD bank CD’s are FDIC insured,so you should be fine.

  5. Lee YH July 4, 2009 at 5:07 am #

    How safe are money kept with Ameritrade online trading account?

    • Rick Kahler July 4, 2009 at 9:09 am #

      Money kept with Ameritrade is as safe as any other institution in America.

  6. Wendel Zajdel Sr. February 27, 2010 at 7:15 am #

    I have purchased a lot of stocks on Ameritade. I’ve purchased a lot so far and would like to put double the amount into Ameritrade, because I’m happy with the customer service and the trading tools they provide. My questions are as follows; Is it safe to let them hold my stocks, which makes it easier to sell them. Or is it better to hold you own stocks. My concern would be if something were to happen to Ameritade are my stocks still safe since my stocks under my name and not under Ameritrade, am I wrong if they hold my actual Stock certificate. Should I open another online account with etrade or another discount broker just so I “don’t pull all my eggs in one basket”?

  7. Rick Kahler February 27, 2010 at 10:54 am #


    I believe it is safe to let TD hold your stocks. Also, there is SPIC insurance on all brokerage accounts for $500,000 that is an added protection.