What you'll learn:
➤ TD Ameritrade Review
TD Ameritrade, one of the largest stockbrokers in the United States, offers a wide range of asset classes and commission-free stock trading.
The platform, Thinkorswim, is exceptional, account opening is user-friendly, and there is no minimum deposit requirement.
However, it’s important to note that TD Ameritrade is primarily available to US residents and citizens and is limited to trading on US markets.
Also, TD Ameritrade has been acquired by Charles Schwab, and the migration of existing TD clients to Charles Schwab is scheduled to be completed by the end of 2024.
Until then, you can still open a new account at TD Ameritrade, especially if you wish to use the Thinkorswim platform, as it is not yet available for Schwab clients.
| TD Ameritrade | Details |
|---|---|
| 🗺 Country of regulation | USA, Hong Kong, Singapore |
| 💰 US stock fee | Free stock and ETF trading |
| 💰 Inactivity fee charged | No |
| 💰 Withdrawal fee | $0 |
| 💰 Minimum deposit | $0 |
| 🕖 Time to open an account | 1-3 days |
| 🎮 Demo account provided | Yes |
| 🛍️ Products offered | Stock, ETF, Forex, Fund, Bond, Options, Futures, Crypto |
➤ TD Ameritrade Pros and Cons
| Pros | Cons |
|---|---|
| Low trading fees (free stock and ETF trading) | You can trade only on US markets |
| Superb desktop trading platform | Accounts mostly limited to US residents |
| Great customer support | Cannot use bank cards and electronic wallets for money transfer |
| High margin rates | |
| Limited product portfolio (only US markets) |
Fees
TD Ameritrade offers free stock and ETF trading, making it an attractive option for cost-conscious investors. Additionally, forex, bond, and options fees are low. However, it’s essential to note that the broker charges high fees for non-free funds and futures.
| Type | Level | Details |
|---|---|---|
| US stock fee | Low | Free stock and ETF trading |
| Forex fees | Low | Low forex spreads and no commission per lot |
| Mutual fund fees | High | $49.95 per transaction for mutual funds |
| Bond fees | Generally Low | No commission for US Treasury bonds; $1 per bond on secondary transactions with corporate bonds |
| Options fees | Low | $6.5 for stock index options commission for 10 contracts |
| Futures fees | High | $2.25 per contract for futures trading |
| Crypto fees | Varied | Crypto futures have fees similar to futures trading, while crypto ETN/ETP trading is commission-free |
| Inactivity fee | Low | No inactivity fee |
| Withdrawal fee | Low | Free withdrawal for ACH transfers; $25 for wire transfer (non-US clients) |
| Deposit fee | Low | Free deposits |
| Account fee | Low | No account fee |
| Demo account | N/A | Demo account provided |
| Minimum deposit | Low | $0 minimum deposit |
| Time to open an account | N/A | 1-3 days to open an account |
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Account Opening
TD Ameritrade offers a straightforward and fully digital account opening process. Notably, there is no minimum deposit requirement for US citizens, making it accessible to a wide range of investors.
| Pros | Cons |
|---|---|
| Fully digital | Only US citizens accepted |
| No minimum deposit | |
| Many account types |
Deposit and Withdrawal
Depositing and withdrawing funds from your TD Ameritrade account is user-friendly and comes with no deposit fees.
However, it’s worth noting that only USD is available as the base currency, and wire transfers incur a high fee. Bank cards and electronic wallets are not accepted for money transfers.
| Pros | Cons |
|---|---|
| Free withdrawal | Only one account base currency |
| No deposit fee | Bank card not available |
| User-friendly | High withdrawal fee for wire transfers |
Trading Platforms
Web Trading Platform
TD Ameritrade provides a user-friendly web trading platform with a clean design. While it offers a good variety of order types, it lacks customizability, particularly for charts and workspace.
| Pros | Cons |
|---|---|
| User-friendly | Limited customizability (for charts, workspace) |
| Two-step (safer) login | |
| Good variety of order types |
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Mobile Trading Platform
The TD Ameritrade mobile app is user-friendly and well-designed, earning it high marks. It offers a variety of order types and is an excellent option for on-the-go traders.
| Pros | Cons |
|---|---|
| User-friendly | None |
| Two-step (safer) login | |
| Good variety of order types |
Desktop Trading Platform
Thinkorswim, the desktop trading platform offered by TD Ameritrade, is considered one of the best in the market. It is highly user-friendly, provides good customizability for charts and workspace, and offers a wide range of order types.
The platform is also rich in trading support functions and educational materials. However, it lacks two-step authentication for added security.
| Pros | Cons |
|---|---|
| User-friendly | No two-step (safer) login |
| Good customizability (for charts, workspace) | |
| Good variety of order types | |
| Trading support functions | |
| Great learning materials |
Markets and Products
TD Ameritrade allows traders to access a variety of asset classes, including stocks, futures, forex, and more. The broker also offers extras like social trading and robo-advisory.
However, it’s essential to note that TD Ameritrade primarily covers the US market, limiting the diversity of international investment opportunities.
| Assets | TD Ameritrade |
|---|---|
| Stocks | Yes |
| ETFs | Yes |
| Forex | Yes |
| Funds | Yes |
| Bonds | Yes |
| Options | Yes |
| Futures | Yes |
| CFDs | No |
| Crypto | Yes |
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Research
TD Ameritrade provides an array of great research tools, including trading ideas and detailed fundamental data. These resources can be highly valuable for traders looking to make informed decisions.
| Pros | Cons |
|---|---|
| Good interactive chart | None |
| Trading ideas | |
| Data on asset fundamentals |
Customer Service
TD Ameritrade offers excellent 24/7 customer service, ensuring that customers have access to relevant answers promptly. Support is available through phone and live chat, with a fast response time.
| Pros | Cons |
|---|---|
| Phone support | None |
| Live chat | |
| Fast response time |
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Education
TD Ameritrade offers outstanding educational materials, including webcasts, articles, and a demo account. The Thinkorswim desktop platform is particularly beneficial for learning and experimentation.
| Pros | Cons |
|---|---|
| Demo account | None |
| Trading platform tutorial | |
| Educational videos |
Safety
TD Ameritrade is regulated by top-tier US authorities, including the SEC and FINRA. Clients benefit from a high level of investor protection, but it’s important to note that the broker does not provide negative balance protection.
| Pros | Cons |
|---|---|
| Majority of clients under top-tier financial authority | No negative balance protection |
| High level of investor protection | |
| Banking background |
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➤ Final Thoughts
TD Ameritrade is a prominent US online broker known for its commission-free stock and ETF trading. The ongoing acquisition by Charles Schwab means that clients can continue to enjoy low pricing and exceptional service.
The broker stands out with its outstanding research and education offerings, a superb trading platform in Thinkorswim, and excellent customer service.
However, there are some drawbacks, including high margin rates and the restriction of product offerings to only US markets. Additionally, the inability to use bank cards and electronic wallets for money transfers may inconvenience some traders.
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