After opting to cut down on digital advertising last month, TD Ameritrade is betting it can lure new customers with a different tactic: more free trades.
The firm is close to doubling the number of funds in its commission-free ETF trading program, according to a press release from TD Ameritrade. Starting June 3, the firm’s customers — as well as the more than 7,000 RIAs on its platform — will be able to trade 569 ETFs from 21 providers commission-free, the company says. Currently, TD Ameritrade offers free trading in 314 ETFs, according to the press release.
The company will offer free trading from 12 new providers, including Nuveen, Goldman Sachs Asset Management, John Hancock Investments and PIMCO, and add an additional 13 Morningstar categories to the 77 currently available, according to the press release.
“While we’re pleased to again offer our clients a greater selection of commission-free ETFs, we’re particularly excited about the broad range of strategies, sectors and asset classes available without a commission,” Eileen Norton, director of investment solutions at TD Ameritrade Institutional, says in the press release. “It doesn’t end here. We’ll continue to innovate and upgrade the ETF Market Center and commission-free program going forward as part of our constant efforts to improve the investing experience for our clients.”
In April, TD Ameritrade CEO Tim Hockey told Bloomberg that the firm was reducing its spend on digital advertising — which accounts for 70% of its marketing budget — because “the fish weren’t biting.”