TD Ameritrade
TD Ameritrade is one of the longest serving online brokerage firms with more than 40 years in the business. Known for its innovation in this fast-growing industry, this broker has earned its place as one of the best brokers. As of today, TD Ameritrade has over 7 million traders and investors who use it to trade or carry out trade-related research. In terms of pricing, this broker is one of the priciest in this industry. In this review, we try to establish if it is worth choosing this broker over another who charges just half as much.
History of the broker
1971- The firm was founded
1990- Introduced trade confirmation via mail
1994- Pioneered the online day trading
The 2000s- Introduced the paperless account creation as well as trade execution guarantee of 10 seconds.
Currently- introduced bitcoin trading
Distinguishing Features of TD Ameritrade
This broker offers services aimed at investors who need guidance in making investment decisions as well as the self-directed traders. The broker also provides basic tools for the casual traders on their website. Its flagship trading platform (Thinkorswim) provides advanced trading and charting solution. The thinkorswim platform is for the sophisticated traders; it offers an intuitive, pro-level experience to users. An archive of tutorials, a learning center as well as “swim” lessons that provide in-depth platform training can all be accessed from their site.
Trading Platforms
Thinkorswim allows all investors regardless of their account size and skill level to explore its capabilities. With this platform, a trader will access US and worldwide economic data. With this feature, a trader is able to tap into 400,000 data points and incorporate the data into their trading. This platform has the following unique features:
- Elite level tools for analysis and strategy testing
- Market scanning to generate trading ideas and ability to monitor potential risk: reward
- Variety of onboarding tools
Trade Architect is also available to all traders offering the following features:
- The Trade Finder tool helps to generate new trading ideas automatically.
- Live streaming video.
- Integrated research.
- Clean design with user-friendly tools aimed at newbie and casual investors.
- Free real-time data.
TD Ameritrade.com: This web-based platform is the ideal tool for beginner traders. It comes with a Chabot to make your navigation as effortless as possible. It also comes with portfolio planners that enable traders to build balanced portfolios.
Competitors
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Products and pricing
TD Ameritrade offers traders, and investors access to multiple investment products among them stocks, options, mutual funds, and forex. The broker charges commissions at a flat rate whether you trade 500 or 50,000 shares. This makes it more attractive to the large traders but no incentive to traders in the form of discounts for frequent trading.
Stocks $6.95
ETFs $6.95
Commission-Free ETFs Free
Options $6.95 + $0.75 per contract
Mutual Funds $49.99
NTF Mutual Funds Free
Customer support
Customer and potential traders can access direct support from the broker through phone, email, fax, text, Facebook or in-person by visiting them in over 300 branches. To add on the same, the broker offers the support in a variety of languages including sign language.
Education
The TD Ameritrade education section is regularly restocked and updated so that you can always find the most up-to-date information when needed. You have access to the information that can help you make better investment decisions about your money, trading, retirement or market news.
StockBrokers.com has recognized trading education as “Best in Class Education” for the eleventh year. You can obtain the training you need to become a more savvy investor in the format of your choice, be it a video, article, webcast, immersive course, in-person or online event.
TD Ameritrade has a YouTube channel with informative videos to help you hone your investing skills. In addition, more than 200 video lessons are accessible via their main website. You can learn the ropes of investing using TD Ameritrade’s platforms, tools and tutorials by taking advantage of their instructional materials.
TD Ameritrade’s website features articles covering a wide range of trading-related issues, such as commentary on the day’s market movements, fresh perspectives on possible emerging trends, and answers to frequently asked investment questions.
Their education coaches provide over 30 weekly webcasts where you can gain valuable insights and information. You can join their live sessions with other traders to obtain answers from their trained staff and learn about current market circumstances or how to use the platform’s tools to their fullest.
In addition, by creating an account, you’ll gain access to genuine coaches that can guide you through various trading and investment themes to help you become a more well-rounded trader and investor. Their investment courses are flexible with your schedule, simple to understand and stuffed with information you can practice and utilize in the real world.
Minimum initial deposit
One of the immediate benefits of Ameritrade accounts is the fact that there is no minimum deposit. For beginners with limited or no capital, this is a fantastic beginning point. The minimum electronic funding for a standard account is $50.
Leverage
To make some decent returns, you can take advantage of the leverage. This loan will allow traders to trade bigger positions. Trading on margin could, on the other hand, amplify your losses. All margin accounts must hold a minimum of $2,000. Their margin costs are quite expensive; the base margin rate ranges between 7.75-9%.
Benefits
- Fast and reliable customer service
- Ability to make advanced orders
- The broker provides educational resources and rich, in-depth research.
- Automatic syncing between mobile and desktop platforms
- Access to numerous technical studies
- Traders can easily access Thinkorswim platform
- Traders can access 100+ commission-free ETFs
- There is a wide variety of instruments.
- The availability of 3 platforms ensures there is a platform for traders of different experience
- Advanced automation capabilities, including the use of robo-advisors
Shortcomings
- Very high trading commissions and fees
- Selling your commission-free ETF within 30 days attracts a fee of $19.99
- The broker has stringent margin maintenance requirements
- The vast amount of information on the site can be overwhelming to the new traders
For further information on the:-
Safety
Is TD Ameritrade safe?
Since its inception, TD Ameritrade has been committed to earning and maintaining its clients’ trust. They are a subsidiary of TD Ameritrade Holding Corp., which has been empowering individuals with their finances for over 40 years. They have obtained their licenses from the Singapore Monetary Authority. The Charles Schwab Corporation wholly owns TD Ameritrade Holding Corporation.
TD Ameritrade is operated under Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The broker is also a member of the Financial Industry Regulatory Authority and Municipal Securities Rulemaking Board.
FDIC-insured financial institutions issue TD Ameritrade’s Certificates of Deposit (CDs). Also, you can keep your cash in a TD Ameritrade FDIC-Insured Deposit Account (IDA). The FDIC insures IDA balances up to $250,000 per depositor per bank in case of a bank failure for accounts held at one or more banks (“Program Banks”).
TD Bank, N.A. and TD Bank USA, N.A., both subsidiaries of TD Ameritrade, are two of the Program Banks. Each bank’s depositors will be insured up to $250,000 by the FDIC, for a maximum of $500,000 per IDA depositor’s combined coverage.
TD Ameritrade offers you one of the highest levels of security at no additional cost. If an unlawful transaction occurs, you will be compensated for any stolen cash or shares of securities.
According to the terms of your Client Agreement, you can check your account and statements regularly and let them know immediately about any suspicious transactions that you did not authorize.
Their security procedures have been meticulously developed, tested, and implemented to safeguard your account, personal information and funds. They also employ sophisticated firewalls, anomaly monitoring, and intrusion detection technology to prevent unauthorized parties from accessing your sensitive information. Additionally, 128-bit encryption is used during data transit between your machine and their website.
FAQ
What is the minimum deposit required to open a TD Ameritrade account?
No minimum deposit is necessary to start a new account but to qualify for margin and some options; you’ll need to deposit at least $2,000.
What types of investments are available through a TD Ameritrade account?
There is a wide variety of investment options available through TD Ameritrade. A basic account allows you to trade stocks, options, mutual funds, ETFs, futures, forex, bonds and certificates of deposit. The permitted investments will be outlined in detail for each plan. For additional information, check out the Account Options and Investment Products pages.
How much, if any, interest can I expect to earn on my account?
Any TD Ameritrade account balance that is eligible for free credit balances. You will receive interest on the monthly total daily balance based on a simple interest calculation. The TD Ameritrade website will always have the most up-to-date information regarding rates and fees for this service. All the information you need is available at Interest Rates.
How to transfer an account from another brokerage firm to TD Ameritrade?
It’s quick and easy to transfer your account to TD Ameritrade. Use the online form to register for an account. Once your account is open, you can log in and go to My Account > Account Transfer or use the Mobile Website to transfer your account.
The name(s)/title on the transferred account must match the name(s)/title on the receiving TD Ameritrade account.
After your transfer, you can add or remove account owners on your TD Ameritrade account. You can also establish other TD Ameritrade accounts with different titles, and you can transfer money between those accounts.
What are the benefits of TD Ameritrade’s electronic funding?
TD Ameritrade offers Automated Clearing House (ACH) services to facilitate the buying and selling of securities. Electronic funding is convenient, quick, and open to change. Use it in our online application. You can open and fund your eligible account on the same market day for most accounts, saving you the expense and delay of a wire transfer or overnight delivery. It can top off your existing account with either a one-time transfer or a regular payment.
Will there be any fees for the transaction when using electronic funding?
No, neither you nor your bank has to pay fees to use TD Ameritrade. But you should ensure that your bank or credit union doesn’t charge you a fee.
Pros
- Major US broker that has more than $1 trillion USD in assets. Publicly traded company in the US.
- Offers just about any kind of financial instrument there is, including direct ownership of stocks, options, FOREX and others
- Lots of free research, and a platform they call thinkorswim. Its collection of market research and data is impressive
Cons
- Isn’t cheap, and a relatively high minimum initial deposit. The amount varies by account type.
- Rules about how frequently certain products can be traded. While they offer ‘fee-free’ ETFs, if they are sold within 30 days of purchase, a fee is applied to the trade.
Fixed spreads
Variable spreads
Stop losses
Limit orders
One-click trading
Trailing stops
Expert advisors (EAs)
Virtual private server
Direct market access
STP broker
ECN broker
Market maker
Price alerts
Signal trading
Watchlists
Charting tools
iOS App
Android App
Windows App
Major Stock markets (US UK Germany)
Indices
Penny stocks
Forex
Majors
ETF
CFDs
Bitcoin
Commodities
ETFs
IPO
Options
Futures
Bonds
Hong Kong stocks
Japanese stocks
Listed on Stock Exchange
Scalping
Hedging
Demo account
Islamic account
Micro account
Standard account
VIP account
Zero spread account
Managed account
Credit cards
Bank transfer
PayPal
Neteller
Skrill
Electronic wallets