Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Cards Stacked Against Traders?

Details

  • Description

    TD Ameritrade CEO Fred Tomczyk on electronic trading and investor sentiment.

  • Duration 4:37
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

So are the bulls back a new survey from TD Ameritrade says investor sentiment is bullish does that mean that.

Retail investors are ready get back in the game joining me now the CEO of TD Ameritrade.

Fred Thompson Fred thanks much for joining us they would appreciate -- -- great to be here.

You know a lot of retail investors one the reasons why they've been nervous have been on the sidelines that they feel like became his rating kind of stacked against them there is so much high frequency trading.

So many people -- and algorithms on the SEC for example has said.

In -- most recent study that they think 50% of the volume five out of ten -- are coming.

From you know from electronic -- professional traders were trading on computers.

Is the games stacked against the.

Average investor I don't think it's stacked against the the average trader.

As much as people might might believe.

You're certainly see that trading in the markets come off -- -- here and there's no question of -- the high frequency trading is moving to other venues vs the stock at -- And that's a bit of a problem and I think that's a -- the structure issue which the industry and regulators.

Need to need to -- She's a danger -- that because we don't even really you're talking about dark pools you're talking about trades that are going on that are not on the NASDAQ and not on the -- -- some people think that numbers -- highest.

40% a third -- on a recent study as well is there a danger of about.

Well there's definitely a dangerous because that means that the rest of the -- not seeing those trees live from known as -- -- after the fact.

And you know you know I think ideally in a perfect world you want to be able to see everything.

So everybody sees that exactly the same information and then people track.

So TD Ameritrade reported 20% decline in profit came in -- -- the forecast but a lot of that was because of weaker trading volumes so.

Are you changing your business model to accommodate this new push this this actually -- you -- can call it new anymore but the electronic trading is the way to -- Well I would not changing our business model whatsoever we we've always been a leader in the in the retail trading side we're going to continue to focus on that it's a very.

Profitable business for us is what we're known for.

But we're definitely have been shifting to the asset gathering side quite aggressively now when -- for fear of gathering analysis and double digit -- switcher.

The best in the industry so we feel pretty notable things.

A month ago the survey conducted showed that more investors are becoming bullish but that was a month ago and -- the economic data just today alone -- you think it's gonna -- their sentiment.

I think today's bringing back a bit of memories of last year sentence about that I think that's a risk but I think -- have to look at that -- went on call.

What they say they're -- believe or do and what they're actually doing so if you look at what they're saying that basically.

They say there are more bullish but they also -- the more cautious and the ones that are more bullish are the ones that are more experience more active and -- And I think as much risk that's -- like that but if you look at what they're actually doing.

If -- we look at our business in three segments so if you're under look being looked after by the independent registered investment advisor.

-- those registered investment advisors have moved our clients into the market taking advantage of the balance of their busted.

To look at the active trader and more experience when they definitely are in the market but there's no volatilities you're not seeing -- trading.

But if you look at the average long from investor they're definitely on the silence and you can see that and mutual fund flows which continue to go out of equity funds and into bond balance.

CNET today in the market asset class so -- -- -- the stealth rally since the beginning of the year you know we've seen about 8% lives in the in the major indices but at the same time as you said the regional investors still sort of on the -- what is keeping him there and for your business how do you get that person -- -- What we've worked -- -- we do a lot of advertising we put a lot of you talked a lot of our clients we do have we investment advisors in the branches and we -- have people in our.

Certain investor services area but you don't you don't let the -- do what they wanna do as long as they understand their risk profile what not but.

If you try and work -- that but that there of the day I I think they have memories of the crisis.

They have memories of last year or so we have this run up in the in the spring and then in late spring.

But there's a risk rating on the sidelines because look you've missed out on this move since the beginning of the year and it tends to be that you see the small time investor come back in at the top when they miss the moving get out of the bottom when they've been crash.

And that's a historical problem and we always try to help people with particular if you have a long term we have a long term plan.

Investment objective stick to it threw up markets and down markets don't go in and out.

It will never work as a usually get it wrong it's very hard it has -- is gonna show in terms of bullishness.

Wallace president -- -- this trend continues on unemployment.

-- are they the jobless claims I think people will get some more pessimistic hat.

Fred Fred Thompson -- was a pleasure thanks for coming in always great insider when investors are thinking we appreciate it.

Are still have this.

Load More