1. 1 December 2003 Quarter Earnings January 20, 2004

2. 2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions of the federal securities laws. In particular, any expectations regarding the effect of our acquisitions of Mydiscountbroker.com and Bidwell & Company and the prospective acquisition of BrokerageAmerica.com accounts, and any projections regarding our future revenues, expenses, synergies, earnings, capital expenditures or activity rates are forward-looking statements. These statements reflect only our current expectations and are not guarantees of future performance or results. These statements involve risks, uncertainties and assumptions that could cause actual results or performance to differ materially from those contained in the forward- looking statements. These risks, uncertainties and assumptions include market fluctuations and changes in client trading activity, general economic conditions, increased competition, regulatory and legal matters and uncertainties and other risk factors described in our latest Annual Report on Form 10-K. These forward- looking statements speak only as of the date on which the statements were made. We undertake no obligation to update or revise publicly any forward- looking statements, whether as a result of new information, future events or otherwise.

3. 3 GAAP Reconciliation During this presentation, references to financial measures of the Company will include references to non-GAAP financial measures such as operating margin, EBITDA, expenses excluding advertising, liquid assets and EPS from ongoing operations. A complete reconciliation between GAAP and non- GAAP financial measures can be found on slides 12 through 14.

4. 4 Dec ’03 Qtr Highlights Record net income $72M, or $0.17 EPS Record pre-tax income $120M, or 53% Record operating margin* $143M, or 63% Record EBITDA* $127M, or 56% Record net revenues of $226M *See attached reconciliation of financial measures

5. 5 Power of Operating Leverage & Scalability 68% 3.07M 1.83M Accounts $71.9M$83.4M$226.4M175KDec ’03 Qtr 700%10%109%101%Change $9.0M$75.8M$108.2M87KDec ’01 Qtr Net Income Expenses Excluding Advertising* RevenuesTrades *See attached reconciliation of financial measures

6. 6 Dec ’03 Qtr Highlights, continued 175K avg TPD 88K new accounts, CPA $262 55K net new accounts Liquid assets* $232M Record client assets of $65B; $11.5B in cash Announced and closed Bidwell acquisition (Closed 1/2/04) Repurchased approximately 10M shares using $120M Expanded line of credit Expensing options *See attached reconciliation of financial measures

7. 7 Automated Clearing Account Transfers (ACATs) *Peer Group includes Schwab, E*Trade and TD Waterhouse For the Quarter ended December 31, 2003

8. 8 Sensitivity Analysis Assumes advertising spend of $20M annually for each 1% of activity rate

9. 9 Power of Operating Leverage & Scalability *See attached reconciliation of financial measures RevenuesOperating Margin*EPS Dec 02 Dec 03 $0.05 $0.17 $69M $143M $226M $181M 25% 106% 240%

10. 10 EPS from Ongoing Operations* *See attached reconciliation of financial measures

11. 11 Liquid Assets* $232 $85 291% } *See attached reconciliation of financial measures In millions of dollars

12. 12 Reconciliation of Financial Measures Unaudited In thousands, except percentages

13. 13 Reconciliation of Financial Measures, cont. Unaudited In thousands, except percentages

14. 14 Reconciliation of Financial Measures, cont. Note: The term "GAAP" in the following explanations refers to generally accepted accounting principles in the United States. (1) Operating margin is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define operating margin as pre-tax income, adjusted to remove advertising expense and any unusual gains or charges. We believe operating margin provides an important measure of the financial performance of our ongoing business. Advertising spending is excluded because it is largely at the discretion of the Company, varies significantly from period to period based on market conditions and relates to the acquisition of future revenues through new accounts rather than current revenues from existing accounts. Unusual gains and charges are excluded because we believe they are not likely to be indicative of the ongoing operations of our business. Operating margin should be considered in addition to, rather than as a substitute for, pre-tax income and net income. (2) EBITDA (earnings before interest, taxes, depreciation and amortization) is considered a Non-GAAP financial measure as defined by SEC Regulation G. We consider EBITDA an important measure of our financial performance and of our ability to generate cash flows to service debt, fund capital expenditures and fund other corporate investing and financing activities. EBITDA eliminates the non-cash effect of tangible asset depreciation and intangible asset amortization, as well as any non-cash gains or charges. EBITDA should be considered in addition to, rather than as a substitute for, pre-tax income, net income and cash flows from operating activities. (3) Expenses excluding advertising is considered a Non-GAAP financial measure as defined by SEC Regulation G. Expenses excluding advertising consists of total expenses, adjusted to remove advertising expense. We believe expenses excluding advertising provides an important measure of the financial performance of our ongoing business. Advertising spending is excluded because it is largely at the discretion of the Company, varies significantly from period to period based on market conditions and relates to the acquisition of future revenues through new accounts rather than current revenues from existing accounts. Expenses excluding advertising should be considered in addition to, rather than as a substitute for, total expenses. (4) Liquid assets is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define liquid assets as the sum of a) non broker-dealer cash and cash equivalents, b) the market value, net of tax, of our investment in Knight Trading Group, Inc. that is not subject to a prepaid variable forward contract for future sale and c) regulatory net capital of our broker-dealer subsidiaries in excess of 5% of aggregate debit items. We consider liquid assets an important measure of our liquidity and of our ability to fund corporate investing and financing activities. Liquid assets should be considered in addition to, rather than as a substitute for, cash and cash equivalents. (5) EPS from ongoing operations is considered a Non-GAAP financial measure as defined by SEC Regulation G. We define EPS from ongoing operations as earnings (loss) per share, adjusted to remove any significant unusual gains or charges. We believe EPS from ongoing operations provides an important measure of the financial performance of our ongoing business. Unusual gains and charges are excluded because we believe they are not likely to be indicative of the ongoing operations of our business. EPS from ongoing operations should be considered in addition to, rather than as a substitute for, basic and diluted earnings per share.

15. 15 www.amtd.com