Over the past two years, TD Ameritrade Institutional has experienced explosive growth in a 401(k) platform it unveiled in early 2015. About 700 of the 5,700 RIA firms using TD as its custodian have used its tools to develop plans.

Prior to the introduction of the platform, only a handful of TD’s custodian clients were fully engaged in the business. A handful of those had made the commitment to deliver record-keeping and administration.

The majority of RIAs are looking at the front end of the defined contribution business by offering features such as plan design, encouraging enrollment and providing advice for employees, according to Skip Schweiss, president of TD Ameritrade Trust Services.

While 700 RIAs have used the system to develop and bid on plans, 5,500 unique visitors have checked out TD’s playbook offering detailed resources on how to enter and succeed in the retirement plan market.

The average plan is $3 million in size and typically represents a small business, largely because that’s where advisors’ clients are. However, Schweiss says advisors affiliated with TD are bringing in quite a few plans in the $20 million to $30 million range. The largest single plan is $300 million.

Despite a surge in 401(k) plan lawsuits over the past few years, Schweiss says he hasn’t heard RIAs discuss the liability issue to a major degree. Many of the lawsuits revolve around proprietary mutual funds and other high-cost investment vehicles, as well as revenue-sharing agreements.

Advisors using TD’s platform are stressing low-cost funds, Schweiss said. Vanguard has a 36 percent market share, followed by Dimension Fund Advisors with a 15 percent share. Among actively managed funds, American Funds and T. Rowe Price rank first and second. Both these fund complexes are considered low-cost managers.

Contrary to popular perception, Schweiss says RIAs now are using ETFs for clients’ 401(k) plans and they represent 5 percent of total assets at the custodian.  “It took awhile but we’re seeing good growth there,” he noted. “We’re able to use ETFs in [even] the smallest plans.”

In some situations where a company has an expensive 401(k) plan, RIAs have managed to cut costs in half. Most firms affiliated with TD are charging 25 to 50 basis points, though some charge up to 75. Flat fees typically dominate the compensation arrangement with larger plans.

To enable RIAs to find potential clients, TD offers them a database that can look up company plans in their area.