TD Ameritrade Review

TD Ameritrade is one of the biggest stockbrokers in the US. It offers a variety of investments and lets you trade stocks without paying commission. It’s known for its good customer service, helpful research on stocks, and fair prices. But, TD Ameritrade is only available in a few countries outside the US. You can only trade on US markets. On February 21, 2023, Charles Schwab started moving TD Ameritrade customers to Schwab. If you’re thinking about opening a brokerage account, our review of TD Ameritrade can help you decide if it’s the right choice for you.

What is TD Ameritrade?

TD Ameritrade is a company that helps people trade stocks and other financial stuff online. They have a website where you can buy and sell things like regular stocks, special stocks, contracts for the future, exchange-traded funds, forex, options, mutual funds, and other money-related stuff. They also offer services like borrowing money to invest and handling your cash. The company makes money from different things. They get money from the interest they earn when people borrow money to invest. They also charge fees when people buy or sell things through their website. And they get paid for directing customer orders to certain places.

A long time ago, in 1975, a company called Ameritrade started. Later, in 2006, they bought the part of another company called TD Waterhouse that operated in the United States. They changed their name to TD Ameritrade. The group that owned TD Waterhouse, TD Bank Group, also became a big owner of TD Ameritrade. In 2017, TD Ameritrade got even bigger. They bought the main business of another company called Scottrade. They moved all of Scottrade’s customers and their money to TD Ameritrade. The bank part of Scottrade joined TD Bank Group.

But in 2020, things changed again. TD Bank Group sold TD Ameritrade to another big company called Charles Schwab Corporation. Now, TD Ameritrade’s services and accounts will be combined with Schwab’s by 2023. They’re moving their main office to Texas, where Charles Schwab’s headquarters is.

Fees and Commissions

Brokers have long lists of fees that you should read before you open an account. We checked out TD Ameritrade’s list to see what fees and benefits they have. While we didn’t find anything that seemed too bad, there are a few fees (and some rebates!) you should know about it before you open an account.

ATM fee rebate:

Many investors like having a debit card connected to their brokerage account, but they don’t like the fees. TD Ameritrade is nice to its clients when it comes to debit cards. They pay back any ATM fees charged by other banks’ ATMs. And there’s no limit to how many times they’ll pay you back, so whether you use your card often or hardly ever, you won’t pay any ATM fees.

Paper statement fee:

Brokers don’t like sending papers by mail. If your account is valued at less than $10,000, you’ll have to pay $2 for each paper statement. But if you choose to get your statements electronically, you won’t have to worry about this fee at all. (Lots of brokers charge fees for paper statements in one way or another.)

The best thing about the top online stock brokers is that they let you trade stocks for cheap. TD Ameritrade now lets you trade stocks and ETFs for $0 commission. They also have good prices for options trading and online mutual funds. However, they might not always be the cheapest for every type of trade. Check the table below for their standard prices for different types of trades. TD Ameritrade’s prices are much lower than those of full-service brokers. They charge $0 for certain online trades. Even though price isn’t everything, everyone can appreciate not having to pay a commission for trades.

Also, remember that the $0 commissions are only for online stock trades. TD Ameritrade still charges $5 for automated phone trades and $25 for trades with a broker’s help.

Pros and Cons

Is TD Ameritrade safe or a scam?

TD Ameritrade is safe and known to be reliable because the SEC and FINRA, top regulators in the US, oversee it. TD Ameritrade operates in finance as a broker/dealer and is closely regulated. Many agencies keep an eye on TD Ameritrade’s business, like the SEC, FINRA, FinCEN, OFAC, IRS, and state regulators. With so many regulators watching, it’s highly unlikely TD Ameritrade could operate dishonestly. They’ve been in business for a long time. TD Ameritrade is also registered with the Better Business Bureau voluntarily.

If TD Ameritrade were a scam, regulators would quickly shut it down.

Regulation and Security

The brokers, FINRA and SIPC, make sure your money is safe with TD Ameritrade. They promise to give it back if TD Ameritrade goes bankrupt or can’t pay. TD Ameritrade takes security very seriously. They work hard to keep your money safe from bad things that might happen. They follow rules from the SEC to make sure your stocks and money are separate from theirs. They keep them safe with other trusted companies. Also, they do checks and reports to make sure they’re following all the rules.

Account Types

Different types of accounts let you buy and sell different things. In a regular account, you can trade stocks, options, mutual funds, ETFs, futures, forex, bonds, and CDs. But remember, in some less common account types like Trust accounts, 529 education accounts, and pension plans, the investment options might be different. Each account has its own rules about what you can invest in.

Investment Options

At TD Ameritrade, you can do everything you expect from a full-service brokerage. You can trade stocks and get help planning for retirement. They support all types of accounts. You can also trade futures.

The downsides are that you can’t buy fractions of shares, and you can’t trade on international markets. If you’re a TD Ameritrade customer, you can only trade stocks listed in the U.S. and Canada.

Cryptocurrency: You can’t trade cryptocurrencies like Bitcoin, Ethereum, and Dogecoin at TD Ameritrade.

Retirement Services: TD Ameritrade offers traditional, Roth, and rollover IRAs without any fees. They were one of the best IRA providers in 2023, according to our picks.

Trading Platforms

If you’re a trader looking for a complete trading platform, TD Ameritrade has got you covered. They offer easy-to-use platforms for web, desktop, and mobile devices, making trading a breeze. Their web platform is great for people who focus on the basics of investing. You can see real-time quotes, set up alerts, and use screeners to quickly find stocks based on different factors, like how they’re doing in the market and their technical details.

For those who are more active in trading, TD Ameritrade’s desktop platform, called Thinkorswim, is top-notch. It’s loved by traders who need advanced features like testing trading strategies, detailed quotes, and clear visuals showing potential profits or losses.

And don’t overlook their mobile platform—it’s just as good. You can get detailed quotes, set up orders based on conditions, and even do complex trades with options, all from your smartphone or tablet. The app works on iOS, Android, and Windows devices, and you can also use their website on your mobile device for trading on a smaller screen.

Customer Support

Discount brokers charge less money for trading because they don’t offer all the extra services like full-service brokers do. TD Ameritrade doesn’t skimp on helping customers, though. You can talk to someone in person at their offices across the U.S. They also have 24/7 support by phone, email, and text. Now, you can even get help through Facebook Messenger and Twitter, and trade stocks by messaging their Facebook Messenger chatbot.

Market Research

Investors can use TD Ameritrade’s tools to turn their ideas into actions. They provide third-party reports, daily market news, and more on the Thinkorswim platform. You’ll find plenty of stock research options with TD Ameritrade. They have ResearchTeam reports, customizable stock scanners, Market Edge for technical analysis, and lots of webcasts and articles.

TD Ameritrade’s live streaming financial network, the TD Ameritrade Network, airs every day from 8 a.m. to 5 p.m. Eastern. You can also watch streaming TV from CNBC for the U.S., Europe, and Asia trading sessions. They give written daily market commentary and analysis through the Ticker Tape portal. Plus, they publish ThinkMoney, a magazine focused on education. You can also track social sentiment data within Thinkorswim, showing how many times a symbol was mentioned on Twitter and its rankings.

Education

TD Ameritrade is a great place to learn about the stock market. It offers an easy-to-understand education for beginners. They have courses and quizzes, with more than 200 videos available. You can track your progress as you learn. Every month, they also have many webinars and educational sessions. You can also watch educational content on the TD Ameritrade Network.

TD Ameritrade has its own magazine called ThinkMoney and a blog called Ticker Tape. They also have the Thinkorswim Learning Center, where you can learn advanced things about technical analysis and even how to code custom indicators. The Talking Green podcast has six episodes that are really good. They talk about behavioral finance, which can help you manage your money better. TD Ameritrade also has YouTube channels. One of them, called Trader Talks, has over 1,000 webcasts that you can watch.

Conclusion

In conclusion, TD Ameritrade is trustworthy. Its new owner, Charles Schwab, bought the company in October 2020. It stands out in the investment world because it provides a safe and dependable platform for investors at all levels. The company has also made sure that accounts exceeding SIPC limits are covered by additional third-party insurance, though this coverage doesn’t shield against investment losses. It shows its dedication to following rules and regulations, offers clear pricing, introduces trading platforms, and prioritizes user experience. Overall, TD Ameritrade is a great option for both new and experienced investors who want to grow their money.

FAQs

Is TD Ameritrade controlled by any authorities?

Yes, TD Ameritrade and its related companies are regulated by the SEC and CFTC. These organizations make sure they follow the rules.

Can I trust TD Ameritrade?

Yes, you can trust TD Ameritrade. They’re owned by Charles Schwab, a reliable company. If TD Ameritrade ever runs into money problems, your U.S. brokerage account is protected by the Securities Investor Protection Corporation (SIPC). They’ll cover up to $500,000 per customer, with a maximum of $250,000 in cash. If your account has more than that, they have extra insurance. But remember, this insurance won’t protect you from losing money on investments.

Does TD Ameritrade accept people who aren’t from the U.S.?

Yes, you can apply to TD Ameritrade even if you’re not a U.S. resident. But there are other brokers, like Interactive Brokers, who also accept non-residents.

How much money do I need to open an account?

There’s no minimum amount required to open a new account. But if you want to do margin trading or certain options, you’ll need to deposit $2,000. This rule applies even if there’s a special offer going on.

How much money do you need to start a TD Ameritrade account?

You don’t need to pay to open a TD Ameritrade account, and there are no fees if your account is inactive or if you have a low balance. However, if you want to trade on margin or options, you need to have at least $2,000 in your account.

Does TD Ameritrade charge a monthly fee?

Generally, TD Ameritrade doesn’t charge you every month just for having an account. But, depending on how you choose to manage your account, there could be some service fees. For example, if you want to get paper statements every month and your account has less than $10,000, there’s a $2 fee. But if you choose electronic statements instead, this fee is waived.

Can you lose money with TD Ameritrade?

Yes, like with any investment, there’s a risk of losing money when you invest with TD Ameritrade. This happens because the prices of investments can go down, and sometimes they don’t go up again. How much you make or lose depends on how well you understand investing, how disciplined you are with your investments, and how long you stay invested.