Review of TD Ameritrade Broker

4.3/5
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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

  • Tradeking
  • Optionhouse
  • E*trade
  • Fidelity
  • Morgan Stanely
  • Signal
  • Franklin Templeton

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 resources

TD Ameritrade has done a tremendous job by assembling one of the most comprehensive education centers in the industry. The course is very well organized making it easy for the readers to sort topics based on their skill level and relevance. Self-paced tutorials are divided into modules with course assessments at the end leaving nothing to chance.

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

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