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Katherine Ross: Charles Schwab announced that is rolling out fractional trading. Is that something that you guys would consider?

Tim Hockey: We've considered it, actually, we've looked at it. It's not something that actually clients demand as much as you might think. And on the other hand, it makes intuitive sense, right? If you say, most clients say, I've got an X dollars to invest, as opposed to saying I want to buy a hundred of anything or 200, if anything. So there's some math that people have to do in their head as opposed to saying, I'll put $1,000 in stock. So, going to fractional shares is something that smaller players have done. And we have looked at in the past and we'll consider it as part of our roadmap.

Katherine Ross: With the level playing field that we have now with Charles Schwab, E-Trade, you guys all having zero commissions, I do have to ask, how are you guys going to stand out besides from just the client experience?

Tim Hockey: Well, as I explained what I think is the best way to stand out is to actually have the best client experience because there's really, in any industry, there are three ways to compete, okay? It doesn't matter what your, on, and you can compete on price. All right? Think of Walmart. You can beat on product, think of Apple, or you can compete on the client experience or service, right? Think of the Ritz-Carlton. So I think great companies are the ones that really choose how they want to compete. Mediocre companies are the ones that try to choose to compete on all fronts and you confuse all your clients. You confuse your associates as to what your actual value proposition is. We've said very clearly from day one. We are going to compete on the client experience, which is why we built up an offering, our platforms, our technology, our education that was worth for clients to pay an extra $2 per trade more up until a few weeks ago we took that money and reinvested in making sure we had an even better client experience. And by the way, we were still gaining share. We had by far more trades than both Schwab and E-Trade together combined at that price point. So clearly clients were seeing value in what we had to offer. Now you take it down to zero. We've got all the same offering, but price comparison, no longer clouds, any of that competitive landscape. We're going to take care of even faster.

Katherine Ross: Thank you so much for joining us.

Tim Hockey: Thanks for having me. 

Charles Schwab (SCHW - Get Report) announced that it was rolling out fractional trading.

Tim Hockey, CEO of TD Ameritrade (AMTD - Get Report) , sat down with TheStreet to talk about whether or not TD Ameritrade would consider fractional trading 

"We've considered it, actually, we've looked at it. It's not something that actually clients demand as much as you might think. And on the other hand, it makes intuitive sense, right? If you say, most clients say, I've got an X dollars to invest, as opposed to saying I want to buy a hundred of anything or 200 of anything. So there's some math that people have to do in their head as opposed to saying, I'll put $1,000 in stock. So, going to fractional shares is something that smaller players have done. And we have looked at in the past and we'll consider it as part of our roadmap," Hockey said.

But, if going to fractional shares isn't in the plans for now, how can TD Ameritrade stand out?

"Well, as I explained what I think is the best way to stand out is to actually have the best client experience because there's really, in any industry, there are three ways to compete, okay? You can compete on price. All right? Think of Walmart (WMT - Get Report) . You can beat on product, think of Apple (AAPL - Get Report) , or you can compete on the client experience or service, right? Think of the Ritz-Carlton. So I think great companies are the ones that really choose how they want to compete. Mediocre companies are the ones that try to choose to compete on all fronts and you confuse all your clients. You confuse your associates as to what your actual value proposition is," he said.

Watch the full video above. 

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