Available only for US clients, this TD Ameritrade review found the broker offers commission-free shares, 2300 ETFs, 70 futures, Bitcoin Cryptocurrency, 70 currency pairs with leverage up 50:1 and the excellent ThinkOrSwim Trading Platform.
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Our team of industry experts evaluated TD Ameritrade based on the range of account types offered, spreads and other trading costs, leverage, trading platforms, deposit and withdrawal methods and so much more. If you are a US resident, you can consider this broker reliable and safe since they have regulation from top-tier regulatory bodies in the United States and are listed on the NASDAQ (TD Ameritrade Holding Corp: AMTD).
Established in 1975 with headquarters in Omaha, Nebraska, TD Ameritrade is one of Wall Street’s oldest stockbrokers. The broker is one of the big four US brokerage firms which comprise Charles Schwab, Fidelity Investments and E*TRADE.
TD Ameritrade’s primary speciality is stock trading however you can also trade other products such as ETFs, mutual funds, forex, bonds, options, futures, and cryptocurrency.
There are a few important key points to note with TD Ameritrade that will impact your decision when choosing this broker:
Note: In Nov 2019, Charles Schwab acquired TD Ameritrade for $26 billion. Both online brokers expect the deal to be finalised by the end of 2020.
TD Ameritrade offers commission-free, no-minimum pricing through their several types of accounts: Standard, Retirement, Education, and Specialty.
Standard Account Types Offered By TD Ameritrade
There are several types of Standard accounts, including:
| Client Profiles | Electronic Funding Minimum | Margin or Option Privileges | |
|---|---|---|---|
| Individual | Cash, Cash and Margin, Cash and Option, Cash, Margin and Option | $50 | $2,000 |
| Joint Tenants with Rights of Survivorship (JTWROS) | Cash, Cash and Margin, Cash and Option, Cash, Margin and Option | $50 | $2,000 |
| Tenants in Common | Cash, Cash and Margin, Cash and Option, Cash, Margin and Option | $50 | $2,000 |
| Community Property | Cash, Cash and Margin, Cash and Option, Cash, Margin and Option | $50 | $2,000 |
| Tenants by the Entireties | Cash, Cash and Margin, Cash and Option, Cash, Margin and Option | $50 | $2,000 |
| Guardianship or Conservatorship | Cash, Cash and Option | $50 | None |
Retirement Account Types
The retirement brokerage account has some restrictions but offers some great tax advantages. US clients can open individual retirement accounts (IRA), including:
Education Account Types
TD Ameritrade offers education accounts for US clients to save for college or pay qualified expenses, with tax benefits available through the 529 Plan or Coverdell Education Savings Account.
Margin Account
TD Ameritrade offers a margin account with leverage up to 1:50, depending on the traded asset class. Furthermore, TD Ameritrade provides the option to engage in margin trading across all their trading platforms. The margin account has the following limitations and restrictions:
Other Account Types
TD Ameritrade also offers several Specialty accounts such as Trust, Limited Partnership, Limited Liability, Sole Proprietorship, Investment Club, or Corporate.
Additionally, the brokerage firm offers several types of managed portfolios overseen by TD Ameritrade Investment Management LLC:
| Essential Portfolios | Selective Portfolios | Personalized Portfolios | |
|---|---|---|---|
| Minimum Investment | $500 | $25,000 | $25,000 |
| Advisory Fees | 0.30% | Between 0.75% - 0.90% | Starts from 0.90% |
| Designed for Investors Seeking | Low-cost diversified portfolios | More sophisticated strategies & Portfolio recommendation | Personalized portfolios by professionals |
| Key Investment Features | Low-cost ETFs and automated strategies | ETFs and Mutual funds | Tailored portfolios |
Verdict
In this category, based on our star scoring system, TD Ameritrade scored 7 points out of 10 points.
Yes, TD Ameritrade is safe with a trust score of 64/100.
Regulation
TD Ameritrade is a trademark, co-owned by TD Ameritrade IP Company, Inc. and the Toronto-Dominion Bank. TD Ameritrade complies with strict regulatory standards imposed by:
It’s important to note that unlike FCA and CySEC-regulated brokers which must offer negative balance protection to retail clients, TD Ameritrade does not offer this.
| TD Ameritrade Safety | Regulator |
|---|---|
| Tier-1 | CFTC SEC FINRA |
| Tier-2 | |
| Tier-3 |
Reputation
TD Ameritrade has been in the forex industry for a long time, having been established in 1971, with headquarters in Omaha, Nebraska.
With such a mileage in the industry, it is only fitting that they’re quite popular with traders, reaching around 1,830,000 Google hits monthly.
Reviews
Despite its popularity, they have a low TrustPilot score of 1.5 out of 5 from 281 reviews.
Verdict
TD Ameritrade can be considered safe with its strong regulation and banking background.
TD Ameritrade offers a huge selection of over 80 trading instruments, ranging from Forex to Indices. It is important to note you are trading the actual products, not contracts for different products (CFDs) that are not available in the US.
| Stocks | ETFs | Mutual Funds | Forex | Bonds | Options | Futures | Cryptocurrency | |
|---|---|---|---|---|---|---|---|---|
| Trading Cost | $6.95 for non-US listed stocks | 0$ | $49.99 | $10.6 per side | $1.0 | $0.65 per options contract | $2.25 per contract | $2.25 per contract |
Commission-Free ETFs And Stock Trading
In 2019, TD Ameritrade (like many other stockbrokers) in the United States waived commission charges on online Stocks and ETFs listed on US exchanges. Over-the-counter (OTC) stocks not listed on a US exchange incur a $6.95 commission rate.
The brokerage firm allows access to several US stock exchanges and some OTC markets, including the NYSE, NASDAQ, AMEX, OTCBB, etc. On this front, it matches the offerings of some of its competitors, such as E-Trade and Fidelity.
TD Ameritrade offers about 2,300 ETFs and these along with Equities are available on the broker’s Web platform or ThinkOrSwim desktop platform with no subscription or platform fees. Active traders will find that TD Ameritrade’s ThinkOrSwim platform offers more advanced trading tools, comprehensive charting, market screeners, and more valuable features for trading stocks and ETFs.
Trading Mutual Funds
The broker offers more than 13,000 Mutual Funds from 740 fund providers and a wide range of no-transaction-fee funds. TD Ameritrade only charges $49.99 brokerage commissions for mutual funds trades. However, the broker also allows commission-free trading on approximately 4,000 mutual funds.
A $49.99 trading commission is charged if clients sell those free funds within 180 days of purchase.
TD Ameritrade clients can also access powerful independent third-party screeners like Compare Funds, Mutual Fund Screeners, Focus List, and Morningstar Instant X-Ray, allowing investors to buy only the best mutual funds.
Forex Trading
With TD Ameritrade (TDA), clients can choose from over 70 currency pairs traded in increments of 10,000 units commission-free. The broker’s compensation is reflected in the bid-ask spread. In comparison, market competitors like E-Trade and Schwab do not offer Forex pairs in their product list.
The average EUR/USD spread is 1.06 pips during peak market hours, resulting in an average trading cost of $10.6 per side for every 100,000 units traded.
Experienced traders who seek reliable technology to implement their strategies will probably find the broker’s advanced ThinkOrSwim platform appealing. It comes with a full suite of technical analysis tools to bring Forex trading to a higher level.
Traders can also access ‘Paper Money,’ a tool enabling you to experiment with advanced order types and test new trading strategies using real market data without risking real money.
Bond Trading
40,000 fixed-income instruments from over 100 dealers are available with TD Ameritrade. These US government bonds are available with no commission. However, in the case of corporate bonds, the brokerage firm will charge a $1 fee per bond on secondary transactions.
Options Trading
TD Ameritrade grants access to eight options markets: AMEX, BOX, CBOE, C2, ISE, NASDAQ, NYSE BATS, and PHLX.
Online options trading with this brokerage is associated with a contract fee of $0.65 per options contract, which is similar to fees at competitors such as E-Trade and Charles Schwab.
By offering unique features such as Options Statistics, Options Probabilities, and the Analyze Tab, the broker’s ThinkOrSwim desktop platform and ThinkOrSwim mobile app allow you to make better-informed options trades.
Futures Trading
TD Ameritrade grants access to five Futures exchanges, including CME, CFE, LIFFE, ICE, and ICE EU. Some 70 Futures products are available with a $2.25 fee per contract plus exchange & regulatory fees. Underlying assets include Energies, Metals, Currencies, Stock Indices, Interest Rates, Soft Commodities, Grains, Live Stock and Bitcoin.
Exchange fees depend on the Futures exchange and product, while regulatory fees, assessed by the National Futures Association (NFA), currently equal $0.02 per contract.
Cryptocurrency Trading
TD Ameritrade Holding Corp has invested in ErisX, which provides access to spot Cryptocurrency contracts and Crypto Futures contracts on one exchange. At present, experienced traders can take advantage of Bitcoin Futures offered by TD Ameritrade.
The main disadvantage is the high account minimum requirement ($25,000) to start trading Bitcoin futures.
Non-Trading Fees
As for TD Ameritrade’s non-trading fees, we should note that the broker does not charge an inactivity fee or an account fee. However, there are service fees, exception fees, regulatory fees, and market data & news fees that you need to be aware of.
Verdict
In this category, based on our star scoring system, TD Ameritrade scored 4.5 points out of 10 points.
TD Ameritrade offers its proprietary platform: Thinkorswim. This includes:
TD Ameritrade Mobile TraderAll TD Ameritrade platforms have advanced features, with ThinkOrSwim Web being the only trading platform that does not grant access to Level II Price Quotes on Shares and Options.
| Trading Platform | TD Ameritrade |
|---|---|
| MetaTrader 4 | No |
| MetaTrader 5 | No |
| cTrader | No |
| TradingView | No |
| Proprietary Platform | Thinkorswim |
TD Ameritrade Mobile is a trader app, which gives clients the basics to manage their TD Ameritrade account. The mobile app is equipped with advanced charts, real-time quotes, watchlists, alerts, and technical indicators and it can be synchronised with the desktop platform.
This user-friendly app is compatible with Android smart devices and iOS-based devices including Apple Watch.
Additional capabilities include access to constant market news, analyst reports, daily updates, third-party research, and e-documents (tax documents in PDF format for the past seven years and statements for the past ten years).
The ThinkOrSwim Desktop Platform
TD Ameritrade’s ThinkOrSwim offers elite-level trading tools, market insights, and a load of unique features, all of which bring trading experience to a higher level.
TD Ameritrade’s flagship trading platform ensures clients will benefit from the most sophisticated tools including:
ThinkOrSwim Mobile App
Designed and optimised for Android- and iOS-based devices, TD Ameritrade’s ThinkOrSwim mobile app brings the power of the desktop platform to your mobile phone.
Having a customisable interface, the mobile app allows traders to:
When you submit an order for stocks, penny stocks, ETFs, currency pairs, or any other financial instrument, TD Ameritrade ensures fast speeds of 70ms. In the stock market, the fast order speed can lead to price improvement savings of around $2.11 for every 100 shares traded.
Verdict
Based on our star scoring system, TD Ameritrade scored 6.5 points out of 10 points.
While the platform offering of TD Ameritrade is excellent, they do not offer MetaTrader 4 (MT4). If you wish to trade with MT4, have a look at the best MT4 brokers for US traders.
TD Ameritrade does not have a minimum deposit requirement for trading on a Standard brokerage account (cash account). However, it is worth noting electronic funding does have a minimum requirement of $50.
Another specific circumstance to note is that the only base account currency the brokerage allows includes the US Dollar. Funding with other currencies will be subject to a conversion fee.
TD Ameritrade does not charge any fees with deposits and withdrawals. The only exception is fund withdrawal via wire transfer, in which case the corresponding bank charges a $25 fee.
| Electronic Bank Deposit (ACH) | Wire Transfer | Account Transfer from Another Firm | Check | Physical Stock Certificates | |
|---|---|---|---|---|---|
| Standard Completion Time | 5 mins | 1 business day | 1 - 3 business days | About a week | 1 business day |
| Deposit Limits | $50 - $250,000 | No limit | No limit | No limit | No limit |
| How to Start | Set up online | Contact your bank | Use mobile app or mail in | Set up online | Mail in |
There are several account funding options available with TD Ameritrade:
Verdict
TD Ameritrade is good in this category, especially with its no minimum deposit requirement.
TD Ameritrade offers outstanding customer support service available 24/7, which means they are open even during weekends. Client support is carried out via several channels:
The broker’s phone support and live chat options met our expectations, as we received relevant answers to our inquiries – an agent got in touch with us within several minutes. Additionally, TD Ameritrade has a virtual agent (“AskTed”), which directed us to a relevant FAQ page.
Verdict
We scored TD Ameritrade an 8 out of 10 in this category for their prompt response time and several support channels.
The broker’s online educational resources bring into a single place various trading materials tailored for all types of investors. TD Ameritrade probably has the most extensive collection of free online educational resources.
New investors can access online training, how-to-do lessons, articles, video tutorials, webcasts, and real-time market insights from industry experts via TD Ameritrade Network. The education offerings include the following key resources:
When it comes to research, TD Ameritrade has The Ticker Tape portion of their website. It shows up-to-date news on relevant issues regarding financial matters. The segments include Market News, Daily Market Update, Morning Futures Briefing, Portfolio Strategy, Retirement Planning, and Investing Basics.
Verdict
TD Ameritrade offers traders a good selection of news, articles and educational materials.
Based on our TD Ameritrade review, the US-based brokerage firm is one of the most reputable online brokers, regulated by top-tier financial authorities. It now has no charges on Equity and ETF trades, in line with the introduction of commission-free trading within the industry last year, but on the downside, it has high financing rates for margin trading and does not allow certain funding methods (Debit/Credit Cards, Electronic Wallets).
On the other hand, it offers an award-winning, market-leading desktop trading platform, a professional customer support service and a variety of account types to accommodate any financial objective or strategy.
However, it’s important to note that TD Ameritrade’s range of trading platforms has a steep learning curve and that TD Ameritrade only accepts clients from the United States.
TD Ameritrade has a $0 minimum deposit requirement. However, if you use electronic funding, there may be a minimum of $50.
TD Ameritrade offers a demo account on its ThinkorSwim trading platform. It is completely free and you can use the trading tools with no risk.
TD Ameritrade is a safe broker with its strong regulation and banking background, scoring 64/100.
With TD Ameritrade, clients can open a margin account in order to access leverage in support of their trading strategies. In other words, they can borrow money from the broker to trade but have to pay interest.
The broker’s margin requirements depend on the respective current base rate (8.25% since Nov 20th 2020) and clients’ debit balance.
Yes, TD Ameritrade offers two main account options for day trading: Cash account and margin account.
Ask an Expert
Is TD Ameritrade good for beginner investors?
TD Ameritrade accommodates the needs of beginners and advanced traders. Many traders fine the thinkorswim trading platform to have a good UX for beginners since it has customization so you can set up your screen to your preference and include good charting and analytical tools. TD Ameritrade also comes with a large range of learning materials that will help you learn to trade.