TD Ameritrade makes play to become top robo by 2016 with out-of-the-gate $100-million revenues -- albeit with some risk attached to the power play

Cerulli tells us that b/d managed portfolios out perform the broker’s ability to pick stocks which in concert with the SEC’s concern about the ongoing viability and continuity of advisors (necessary for fulfillment of ongoing fiduciary duty), argues for large scale advisory services.

TDA’s entry into that space is the industry’s first attempt at institutionalizing large scale institutionalized support for advisory services and ultimately professional standing. We still have a long way to go, but it is a start worthy of encouragement. The missing links of (1) expert authenticated prudent process and (2) a more modern approach to portfolio construction that assures continuous, comprehensive counsel; will re-price and transform the industry in the consumer’s best interest as demonstrated by our top private trust banks at the top of the advisory services food chain.

SCW
Stephen Winks