TD Ameritrade – Advisor Direct® Program

TD Ameritrade has been a leading discount brokerage firm providing a wide array of investment services for do-it-yourself investors. In recent years TD Ameritrade changed its business model to include providing investment management services to the professional advisor marketplace. Independent Registered Investment Advisors (RIA) need to establish custodial brokerage firm relationships to meet investment need of their clients. To execute this business plan, TD Ameritrade’s AdvisorDirect® was established for RIA investment advisory service needs including, trade execution, clearing, market maker, cashiering and portfolio accounting.

According to TD Ameritrade marketing materials, “professional service just got personal.” They offer to help you find a Registered Investment Advisor (RIA) through AdvisorDirect® advisory service. TD Ameritrade makes clear that based on your personal needs, “AdvisorDirect® will refer you to an independent Registered Investment Advisor (RIA) that will work with you to develop a money management plan that helps you meet your investment goals.”

TD Ameritrade assures investors about the professionalism and expertise of the RIAs who are members of the AdvisorDirect® Network. According to TD Ameritrade, no matter your level of sophistication, “you’ll get the professional support you need to make informed financial decisions without the time commitment often associated with creating and managing a portfolio.” They explain, you should “feel confident knowing every independent RIA participating in AdvisorDirect® has met our eligibility requirements and has gained valuable experience working in financial services.”

So what are the responsibilities of the related parties in the TD Ameritrade AdvisorDirect® Network? Are you a client of TD Ameritrade or the independent Registered Investment Advisor who has discretionary trading authority over the account assets? Who supervises the activities in the account? Who is responsible for losses sustained in the investment account?

It is important to determine whether your investment portfolio has been properly managed by a registered investment advisor in a custodial account with the TD Ameritrade’s AdvisorDirect™ Network based on your investment objectives, risk tolerances and investment time horizon.

Investors are advised to seek competent financial, tax and legal advice concerning the decisions they make with their investments. Klayman & Toskes, P.A. can provide you with a free consultation concerning any securities industry violations related to the handling of your investments accounts by a full-service brokerage firm or registered investment advisor.

Information contained on this webpage is for educational purposes only
and should not be considered legal advice.
No Information contained on this website creates an attorney-client relationship.