Order Execution Quality
October – December 2023
TD Ameritrade uses advanced routing technology and evaluates execution quality, mindful of what matters most to our clients.
You Want a Better Price
The vast majority of market orders executed receive a price better than the nationally published quote.
Percentage of orders price improved
Percentage of orders price improved:Executed market orders receiving price(s) better than the National Best Bid/Offer (NBBO) at the time of routing, divided by the total number of orders executed.
Note: Shares executed at market quote or better (%) is 98.7%
You Want to Save Money
Price improvement provides significant savings.
Net improvement per order
$1.21 (per 100 shares)
Net improvement per order: Net price improvement per share ($0.0121) in the order size range comprising the vast majority of our clients’ market orders (1-1,999), multiplied by 100 shares. Total net price improvement by order will vary with order size.
You Want Your Entire Order Filled
TD Ameritrade routes market orders to market centers that offer greater liquidity (or shares) than the available shares displayed on the quote.
Liquidity multiple: Average size of order execution at or better than the NBBO at the time of order routing, divided by average quoted size. Includes orders with a size greater than the available shares displayed at the NBBO at time of order routing. For example, assume you place a market order to buy 600 shares but only 200 shares are displayed at the quoted ask price. If all 600 shares of your order fill at or better than the NBBO for 200 shares, you have received 3 times (3X) the displayed liquidity.
You Want Your Order Filled Fast
TD Ameritrade’s proprietary routing technology enables market orders to be filled quickly.
Execution Speed: The average time it took market orders to be executed, measured from the time orders were routed by TD Ameritrade to the time they were executed.
Execution quality statistics provided above cover market orders in exchange-listed stocks 1-1,999 shares in size.
Execution quality statistics provided by S3 Matching Technologies, which is not affiliated with TD Ameritrade.
Price improvement is the opportunity, but not the guarantee, for an order to be executed at a better price than the National Best Bid or Offer (NBBO) at the time of order routing.
Dependable, Proactive, Supportive
We strive to provide consistent, quality executions for our clients’ orders.
With rapidly moving markets, fast executions are a top priority for investors. Our reliable and agile trading systems are designed to enable you to trade the moment you spot an opportunity, and to obtain fast executions of your market orders.
We believe that competition among market centers for our order flow serves to improve execution quality. We monitor order executions daily, monthly, and quarterly, and seek market centers that will provide quality executions for our clients on a consistently reliable basis.
We work to maintain good relationships and communication with our market centers, and maintain an active dialogue with industry stakeholders, keeping in mind the interests of the retail investor.