Dear Shareholders,

2006 marked not only another outstanding year for the
Company – but the start of a new era. The successful
acquisition of TD Waterhouse redefined us as a large-cap
company and set the stage for incredible opportunities to help independent-minded traders and investors Thrive with Confidence.

Strategy drives success

Our long-term growth strategy is paying off. We delivered
excellent shareholder value in 2006 with our fourth record
year in a row. A few highlights:

We paid shareholders a special $6 dividend – one of the largest
in U.S. history;

Net revenues grew to a record $1.8 billion;

We had record net income, excluding investment gains/losses¹,
of $483 million, or $0.87 per diluted share;

Our record operating margin² reached $952 million, or 53 percent;

Asset-based revenues exceeded 60% of our revenue stream by
the end of the year; and

We’ve maintained an earnings per share compound annual growth
rate, excluding investment gains/losses¹, of 40 percent since
2003, far exceeding the S&P 500.

Determination keeps us focused
The seamless integration of our two legacy client bases is our
number one priority for 2007. So far, we’ve made excellent
progress in bringing the two companies together. This year we
successfully started to deliver on our client segmentation strategy
by launching the new TD AMERITRADE brand, value proposition
and Web site. We have also made improvements in our technology
platform, including increasing trading capacity and enhancements
to our order-routing technology.

We have exceeded the original $200M revenue opportunity from
the TD Waterhouse acquisition by more than $100M. Additionally,
we expect to surpass the initial fixed cost goal.

Look for a continuing shift to a more sales-focused organization in
2007 as we add more products and services for long-term investors
and implement initiatives to help ensure the Company’s continued
growth. As always, we will also continue to adhere to our strict
cost-control measures.

Success at anything is about envisioning a goal and aiming for it
unwaveringly. Our vision is that TD AMERITRADE will become the
choice destination for retail investors. We can achieve this goal
through the hard work and dedication of our Associates. Every
day they are completely focused on providing an excellent
experience for clients, knowing this will result in great value for
you, our shareholders.

Sincerely,

Joe Moglia

Chief Executive Officer

1 Net income and EPS, excluding investment gains/losses are non-GAAP financial measures. GAAP net income was $527 million or $0.95 per diluted share.
2 Operating margin is a non-GAAP measure. See reconciliation on page 28 of the enclosed Form 10-K.