TD Ameritrade Review

Founded in 1971, TD Ameritrade is an electronic trading platform that allows customers to trade a wide variety of financial assets including stocks, ETFs, mutual funds, cryptocurrencies, futures contacts and more. Currently, TD Ameritrade has more than 12 million accounts to its name, and assets of more than $1.2 trillion.

One of the best things about this broker is that it is suitable for investors of almost all experience levels. Whether you have only a few trades under your belt or are an advanced investor, TD Ameritrade has resources for you, including research and data and guidance for building your portfolio.

Another major benefit to trading with this broker is the $0 minimum investment. There are also no commission fees for options, exchange-traded fund trades, and stock. Lastly, if you need in-person help, there are over 300 branches available. This review will tell you all you need to know about the ins and outs of this broker.

TD Ameritrade Pros & Cons

Pros

ETF, non-penny stock, and options trades are commission-free
Research and data tools are free
There is a large selection of investments from which to choose

Cons

Broker-assisted trades are somewhat costly
Brand-new, total beginners might find TD Ameritrade overwhelming
Money orders take a little longer to clear than over financial options
Pattern Day Trader violations take ninety days to clear up, in some cases

Who Is TD Ameritrade Recommended For?

TD Ameritrade can be a bit overwhelming for beginners. If you have never made a trade and are a total novice to the trading world, you might find that this broker is a little difficult to get used to. However, people whose experience levels are higher than “total novice” will find the platform very usable.

This platform is recommended for experienced investors, as well as investors who are just getting started but are not totally new. The cost-free research and data tools are useful tools to grow your knowledge base.

Regulated By

Financial Industry Regulatory Authority (US)
Securities Investor Protection Corporation (US)

Account Options

Broker Type Stockbroker
Minimum Deposit $0
Maximum Forex Leverage 50:1
Scalping Yes
Hedging Yes
Free Demo Account Yes
Accepts US Traders Yes

Top TD Ameritrade Features

Low Commissions/Fees

One of the biggest concerns for customers is the amount they will pay out of their own pocket to the brokerage platform. High fees and commissions can turn away even the most dedicated of investors. Luckily, this broker has a minimum deposit requirement of $0. Certain stock trade fees, ETF trade fees, and option base fees are also $0.

Research & Data Tools

Research and data tools, including charting, are excellent at TD Ameritrade. The trading tools include virtual trading with fake money, advanced earnings analysis, FRED data plotting, back-testing, charting social data, and replaying historical markets. The earning analysis tool is especially well-suited for those who like to plan ahead.

Thinkorswim Platform

Thinkorswim is TD Ameritrade’s desktop trading platform. It has received rave reviews from stockbrokers and investors. Thinkorswim is paired with the Mobile Trader, an iPhone/Android app for trading on the go.

Investment Variety

Variety with this broker is on-par with what you would expect of a full-service broker. TD supports all account types and offers forex and futures trading. Note that this broker allows you to trade only Canadian and US securities.

TD Ameritrade Account Types

According to the TD Ameritrade website, there are six types of accounts at this broker: standard, retirement, education, specialty, managed portfolios, and margin trading. The standard account allows the user to gain access to all the regular features, such as research, investment products, and trading platforms. The standard account, whether individual or joint, can be upgraded for forex, futures, and options.

Retirement accounts include Rollover IRA, Roth IRA, and Traditional IRA accounts, each of which have their own tax advantages (and disadvantages). Education accounts allow you to save for education-related expenses—for example, you can set up a 529 plan.

Specialty accounts include individual trusts, business partnerships, and other non-traditional financial accounts. If you choose a managed portfolio, the broker’s LLC will manage your account and grow it for you. Lastly, margin trading accounts let you borrow TD Ameritrade’s money to boost your buying power.

Trading and Investment Tools Trading Platforms

Thinkorswim

Virtual Trading Yes
Roboadvisor Yes
24hr Trading Yes
Streaming News Feed Yes
Charting Package Yes

Fees & Commissions

Rollover Fee No
Margin Interest Yes (8%-9.5%)

TD Ameritrade Pricing

As aforementioned, one of the best features of TD Ameritrade is its low fees. This broker charges $0 in fees for non-penny stock trading. But, note that broker-assisted stock-trading costs $25. ETFs are commission-free as well, but the $25 broker assistance fee applies.

There are commissions on mutual funds, but a no-load mutual costs $49.99 (a load is free). Options are commission-free, but there is a $0.65 charge per contract. The broker assistance fee of $25 also applies here. Futures cost $2.25 per contract, not inclusive of fees associated with regulation. Even for the fees that do exist at this broker, they are not prohibitively high.

TD Ameritrade Reliability & Security

TD Ameritrade struggled in the beginning to launch its Thinkorswim platform. The platform, which is the broker’s web-based desktop trader, still has some glitches, and there have been outages as recently as August 2020. That is the only nonreliable aspect of this platform, and, hopefully, the broker is able to correct these issues.

Security-wise, TD Ameritrade is heavily-regulated. It has a long track record. The broker’s site discloses financial information readily and is listed on a major stock exchange. It has consistently been ranked highly by users on review sites. Overall, TD Ameritrade is a secure platform.

TD Ameritrade User Experience

TD Ameritrade overhauled its website in 2018 after users complained that the site was too overwhelming. They responded, and the result was a cleaner, simpler format that has been well-received by clients. TD also gets points for responsively modernizing its products to promote a good client experience.

The refresh of the website wasn’t the only change—the broker also refreshed its mobile app. Everything is now easier to find, and that cuts down on time spent not trading. As cited above, the only downside is the recent glitches that Thinkorswim has experienced.

Though Thinkorswim has been glitchy, it is important to remember that it is a relatively new desktop platform. It is bound to have a few issues. When Thinkorswim is working, it is one of the best platforms out there, far better than almost all of this broker’s competitors.

Final Thoughts on TD Ameritrade

Overall, TD Ameritrade has proven to be a responsive platform that is dedicated to improving when customers note a problem. The platform is longstanding, having been around for more than five decades. TD is one of the highest-rated brokers in the country, according to review sites.

The low fees and in-person branches are two major advantages to this broker. The research and data tools are top-notch, and newer traders will find that they are able to expand not only their portfolio, but also their knowledge base. Though certain trading products are a bit costly and the desktop trader has a glitch or two, the positives of TD Ameritrade far outweigh the negatives.

Contact Info

Website: www.tdameritrade.com

Telephone: 800-454-9272

Company Address:
200 South 108th Avenue Omaha, NE 68154

TD Ameritrade FAQs

Q: What is the Pattern Day Trader Rule?

A: A “pattern day trader” is an account that completes four round-trip orders (buying and selling the same options or positions) in five business days. If you do this, you’ll be flagged. In order to get the flag off your account, you must show that you have a minimum of $25,000 in total account value. Otherwise, you will be suspended for ninety days.

Q: What happens if I receive a margin call?

A: If you receive a margin call, you must pay it immediately. Margin calls require you to act fast. You can close your positions that you purchased on margin using financial methods like ACH, wire, or deposit.

Q: What is the Good Faith Rule?

A: If you sell a security in your cash account without paying for the initial security purchase, you have, whether intentional or not, committed a good faith violation. To avoid such a violation, wait two days before selling the security you just bought.

Q: When will my funds be available after deposit?

A: Cash transfers take the least amount of time, if they are between accounts. If you transfer ACH, it will post immediately if you have transferred the amount before 7PM ET during the business week. Wire transfers will take a few hours, while a mobile check deposit takes few minutes.

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