Dear Shareholders,

It’s been one year since TD AMERITRADE emerged on the scene – a new and powerful force in the brokerage industry, the product of two successful companies and years of proven experience. It’s been exciting and rewarding to see this year unfold – another important step in our evolution. This is a Company that has once again successfully reinvented itself in a competitive and fast-paced industry.

The coming together of Ameritrade and TD Waterhouse allowed
us to make a marked shift in our overall focus – expanding our
assets, broadening our offerings for long-term investors, and
ultimately growing our new Company. As we continue to build
TD AMERITRADE, we’ll be able to offer more to clients, and
more to shareholders.

We have accomplished several key goals since the acquisition, including:

We repaid about a quarter of our debt;

We implemented a stock buy-back program, and repurchased
3.8 million shares of our common stock; and

We earned 30 percent return on average equity¹, an increase
from 25 percent in 2005.

Positioned for the future
TD AMERITRADE is poised to continue rewarding shareholders for
their faith in the Company. Our future success will be the result
of the talent and effort of many people including our current board
of directors. I also want to recognize and thank the members of
our board who have moved on. Together they have left an indelible
mark on this Company due to a perpetual commitment to leave
TD AMERITRADE even stronger than the organization they inherited.

This Company began with a simple concept – bring the trading tools and products from Wall Street to Main Street. Under the skillful leadership of Joe Moglia, our management team and Associates are striving to deliver on our promises. Equipped with a legacy of online brokerage expertise, the ability to offer traders and investors comprehensive services, and a team eager to lead the industry, the potential to create substantial shareholder value remains impressive.

Sincerely,

Joe Ricketts

Founder and Chairman

1 Based on net income excluding investment gains, which is a non-GAAP financial measure. GAAP return on average equity was 33 percent.