- What is TD Ameritrade?
- Pros and Cons
- Merger of TD Ameritrade & Charles Schwab
- Account Types
- Demo Account
- Account Opening Process
- Asset Offerings
- Additional Features
- Types of Platform
- Minimum Deposit
- Why Should You Choose TD Ameritrade?
- Forex Trading
- Thinkorswim Mobile
- Customer Support
- Wrap Up
What is TD Ameritrade?
TD Ameritrade stands out as one of the most popular and leading full-service brokers and caters to both experienced and new traders. It offers two versions of its mobile platforms and online trading platforms, focusing on offering its clients education and research tools. This platform provides great broker experience in the trading market, irrespective of the trader’s skills.
TD Ameritrade offers several benefits to its traders and provides a wide range of services as per the trader’s requirements. Qualified professional traders looking for a wide selection of features and functionalities might find a TD Ameritrade broker a good fit.
TD Ameritrade Overview
|Headquarters||Omaha, Nebraska, United States|
|Regulators||SEC, FINRA, CFTC, MAS|
|Products Offered||Stocks, Options, ETFs, Mutual Funds, Futures, Forex, Bonds, and CDs|
|Minimum Initial Deposit||$0|
|MetaTrader 4 (MT4)||No|
|MetaTrader 5 (MT5)||No|
|Supported currencies||USD, AUD, CAD, CHF, CZK, DKK, EUR, GBP, HKD, HUF, ILS, JPY, MXN, NOK, NZD, PLN, SEK, SGD, TRY, ZAR|
|Customer Support||24/7 Assistance Through Phone, Email, Chat, & Social Media|
RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK
As per our TD Ameritrade review 2023, it provides its users commission-free trades on particular stocks and ETF trades along with mutual fund screeners and more. This best broker also provides tax-loss harvesting. And it also offers four trading platforms tailored for both new and experienced traders. In this way, it’s a good pick; everyone gets an opportunity.
T.D Ameritrade was established in 1975 as the first Omaha Securities, and it is one of the most well-known and biggest US-based stock market & forex brokers. Also, it is on our top forex brokers list for 2023. Top-tier regulatory authorities regulate it, like the financial industry regulatory authority(FINRA), the securities and exchange commission (SEC), known for SEC filings as well, & the commodity futures trading commissions (CFTC).
TD Ameritrade web based platform provides a wide range of investment products options trading for the traders, including individual bonds, Mutual funds, preferred stock, common stock, free stock, options, exchange-traded funds(ETFs), & money market accounts. Besides, the Stock page is assessed by various third party analysts.
TD Ameritrade Review: Pros and Cons
Let us see a few pros and cons of this broker –
|The platform offers high-quality stock trading platforms for its users with low trading costs.||Broker-assisted trades are quite expensive.|
|Provides several educational resources.||Does not offer fractional shares & hedge funds.|
|It provides excellent customer support 24×7 for its traders.||Uninvested cash doesn’t go into money market funds.|
|Offers a large selection of assets.|
|There is no account minimum required for this broker.|
|It offers Commission-free options, commission free stock and ETF trades.|
The Merger of TD Ameritrade and Charles Schwab
- At the end of November 2019, there was an announcement that Charles Schwab had acquired TD Ameritrade.
- Charles Schwab-owned company, Schwab, was one of the first companies to introduce zero-commission on ETFs, funds, trade stocks, options, etc. After the merger, TD Ameritrade followed suit and adopted Schwab’s fees and trading commissions structure and offered its client commission free trading ($0 commissions).
- These two companies have merged in a lump-sum billion-dollar amount deal, and this gave Charles Schwab company a benefit of an increase in its client base and client assets by millions.
- It gave the Charles Schwab company around 24 million client accounts and over 5 trillion dollars in client assets.
- The Merger is expected to take place in mid-2023.
Features of TD Ameritrade
Let us discuss some of the features offered by the platform –
- TD Ameritrade’s platform stands top as the most popular and one of the largest online brokers best in the US; it offers multiple platforms aimed at different levels of traders with different skills and expertise. Its exhaustive educational resources offer helps new investors become more confident and explore several asset classes when they start trading on its desktop platform. (like stock and ETF trades)
- This desktop platform does not require an account minimum for opening a deposit or opening a new account; this is considered one of the most significant advantages of TD Ameritrade. The trader can fund their account with $50 or $100 and start stock trading right away. It is one of the best options and provides easy access for traders to invest big or small amounts in starting trading on the platform immediately.
- TD Ameritrade’s broker, one of the top picks platforms, has several investment options for its traders. It also offers several mutual funds for traders, with over 13,000 Mutual fund offerings. Moreover, this Mutual fund can be used in the trader’s standard account or individual retirement account (IRA accounts), where these accounts can be set up on the platform. It also has a rollover IRAs education account.
- TD Ameritrade online broker has good charting tools, smooth order flow, and advanced analytics; the trader can use more than 300 technical indicators, and the charts offered by the platform are editable. Besides, TD Ameritrade’s indicators are most extensive compared to other online brokers.
- TD Ameritrade’s thinkorswim trading platform has been voted the number one active trading platform by Barron’s. Moreover, the trader can access advanced mobile applications where they can trade on the go. The mobile applications can be available on tablets, phones, or Apple watches. This platform raises the standard by combing fx, options, and more on top of the web platform’s tradable securities.
- Thinkorswim platform provides the required data for charting which has over 400 technical indicators. You can first place multi-legged options orders and tools to find various market opportunities for investors and traders for cryptocurrency trading, stock and ETF trades, etc.
- The online broker platform is excellent for newer investors, casual investors, and experienced investors; it also provides discounted commissions for VIP customers based on the volume of trade assets and thus can also be called discount brokers.
- The number of research tools offered by TD Ameritrade can sometimes be a bit overpowering. Despite all the features, the platform does not offer fractional shares, leading to restrictions for traders with limited capital. This fractional shares feature is found in platforms like Interactive Brokers.
- The platform offers Premier List, which helps you pick top mutual funds that can help meet your objectives compiled by morningstar research services.
TD Ameritrade Account Types
As per our full review of TD Ameritrade, we can say that the platform has user friendly accounts per the trader’s convenience. It does not charge deposit fees or account fees, (no account minimum required) but the USD is considered the only base currency. Besides, the stocks bonds are offered by third-party analyst reports.
Below mentioned are the TD Ameritrade account types –
- Standard Account
- Education Account
- Retirement Account
- Specialty Accounts
- Managed Portfolio
Security of TD Ameritrade
As per the review, TD Ameritrade has two-step login authentication. The trader can choose either a two-step login authentication or are prompted to enter the password for a security question. The trader should register the device to proceed further to bypass these details.
When they first log in to their new device, they need to answer a few security questions, and after the registration, they can access their account as per their login preference. Investment choices are never insured despite the high priced securities; better to understand your own personal financial situation. So always be careful and seek investment advice.
Demo Account of TD Ameritrade
As per the review, the TD Ameritrade platform has a free demo account called PaperMoney; the account is funded with virtual money. The trader needs not to risk their real funds, ETFs, etc until they are confident, though the personal financial situation must be considered when going live. This is one of the best opportunities for users to familiarise themselves with the platform and develop trading strategies.
It is a good way to test the features and functionalities offered by the stock trading platform. For paper trading, the trader needs to offer basic details such as their name, phone support, email address, and location. When they are confident enough, they can close their demo account, upgrade to the live trading account from paper trading, and should do thorough financial research before starting.
Account Opening Process
Opening an account with TD Ameritrade is a simple process. When the trader can complete the account opening form, which is available online, they need to confirm their identity by faxing or mailing the generated document and a copy of their ID card to this broker. It might take up to 1 to 3 working days to open an account.
Below given are the few steps you need to follow for the account opening process with this broker –
- The first step is to choose the account type and specify the investment objectives and trading preferences and then make your trading strategy.
- The next step would be to add personal information like employment status, social security number, and country of residence.
- The next step would be to review the information, and the trader should acknowledge some of the terms and conditions given.
- The next step would be to confirm the application, and this online application would take around 20 minutes to fill. The account verification would be completed within three working days.
Asset Offerings of TD Ameritrade
Below given are the various asset offerings provided by this full service brokerage firm:-
- As per the review, the trader can make online stock trades on some major global markets, such as NASDAQ and NYSE, and OTC stock ( where OTC stands for over the counter). Moreover, the user can trade penny stocks; most brokers platforms like interactive brokers also support this stock trade, including TD Ameritrade.
- The traders can easily invest in some of the topmost mutual funds through the accounts of brokerage firms. This broker offers several mutual funds without selling or buying fees.
- TD Ameritrade’s margin rates are competitive in comparison to other brokers. Though the TD Ameritrade’s margin rates are determined by the debit balance only for those who use margin rates.
- Trading options are well suited for experienced traders. The traders should understand several risks involved in options trades before they proceed with long term investing.
- TD Ameritrade broker supports around 20 currencies, including major currencies like the British pound, Swiss Franc, Euro, Japanese yen, and several others, and can buy with debit cards or credit cards.
- The trader can also buy and sell ETFs just like stock trades by using their TD Ameritrade’s account. It also offers the trader to trade stocks, the platform even suggests which are the strong buys, and they can also trade over 97 commission-free ETFs.
- TD Ameritrade futures trading helps experienced traders with an array of features. Besides, they can also scan futures contracts, the options contract, or any tradable asset offered at competitive prices, even though price improvement is not guaranteed.
- In this user friendly platform trader can trade bitcoin futures and forex as per need, choose from a set of managed portfolios, and take advice from an investment advisor to build their custom portfolio.
- TD Ameritrade offers bonds, cash management, annuities, and more when an account is opened. Despite all the features, it does not offer fractional shares.
Additional Features of TD Ameritrade
Let us discuss some of the additional features offered by the TD Ameritrade –
- TD Ameritrade gives social signals feature, which provides a real time data streaming feed of relevant tweets needed by the investor to make informed decisions and level ii quotes for trade It also offers a summary chart of some influential and most popular brands.
- TD- Ameritrade offers free research, Investors can find the streaming news and go through the watch lists for analysis from Dow Jones, briefing.com, Zacks, and several more resources, thus making financial decisions as needed. Also, seeking a financial advisor would do you no harm.
- It also offers technical analysis from CFRA, Market Edge, Vickers, and Credit Suisse.
- This broker offers a peer comparison service tab that allows investors to locate highly customizable charts that display past performance against other assets, then a table that offers relevant metrics.
- This broker offers a range of educational tools, where investors can learn from articles, videos, slideshows, quizzes, and even financial advisors support. Additionally, this broker will monitor the trader’s progress and will reward points. It also offers virtual trophies when the trader improves.
- TD Ameritrade has an earnings calendar feature that allows investors to track earnings and big organizations’ announcements. It helps the trader prepare for some of the forthcoming data releases and anticipates future market price movements, which help in your future results as you trade just like the watch lists feature of the platform.
The above-mentioned feature, products and services it offers, and its ease of use will help you in making financial decisions.
Types of Platform
TD Ameritrade lays out its users with free access to various trading platforms. The investors can manage their accounts and execute stock trades or any other asset through their website, and they can also trade through a web browser, desktop, or mobile.
Web Trading Platform
The web trading platform offered by TD Ameritrade is handy for most passive traders. The trader can log in to their account, research stocks, ETFs, etc, look for various investments TD Ameritrade provides, futures, and forex, and thus place trades through the website of TD Ameritrade.
It also offers information about various topics, analyst ratings, watch lists for your analysis, and even sets up essential portfolios which offer Robo advisor services and are ideal for new traders and investors with simple needs.
Mobile App Trading
As per our TD Ameritrade review, and the information provided by traders, this platform offers 3 mobile apps for its traders with simple ease of use. They are the more advanced TD Ameritrade mobile trader, the standard TD Ameritrade mobile application, and the mobile app version of Thinkorswim trading software. All three applications are available for both Android and IOS operating systems.
TD Ameritrade mobile apps are an ideal choice for beginner and intermediate traders, as it offers level II quotes, real time quotes, conditional orders, order types, price alerts, and even complex options trades, yet the two apps do not support some of the powerful tools that are available on the most other brokers platforms like (the Interactive Brokers ) in the market.
Thus the standard app is perfect for beginners, so that solves the query is TD Ameritrade good for beginners? The Thinkorswim for the mobile trading apps offers tools for advanced traders, day traders, and intraday traders.
The mobile app offered by TD Ameritrade is for smartphone operating systems, and it also supports Apple’s watch. This feature can be ideal for trading anywhere, anytime, and the trader can keep tabs on their account, offering practical functionality.
TD Ameritrade has a trading simulator called PaperMoney, which helps traders practice their trading methods without real money. It also offers the users $100,000 in virtual cash and a margin account to increase their buying power (supports margin trading).
The trading simulator uses the Thinkorswim desktop platform, which its customers offer for free. It is available for a 60-day trial run for their non-customers. These features are not always seen in some of the other brokers and depend on the available products of brokers.
Fees of TD Ameritrade
TD Ameritrade is one of the most popular full-service brokers, which means the trader can trade stocks, ETFs, and options completely free. If the trader wishes to execute a broker-assisted trade, the fee is $25. TD Ameritrade offers no transaction fees and mutual funds fees for its investors;
However, traders should be aware of hidden service fees and partial transfers fees that may apply, but the overall structure is based on lower fees with the inactivity fee are not charged and of course no transaction fee.
If traders want to trade executions in no load funds, they need to pay $49.99 per trade. Also, the F&O in the future needs a $2.25 fee per contract, along with exchange and regulatory fees. The current base rate of the platform is 8.50%.
As per our TD Ameritrade review 2023, we can say that this broker offers low non-trading fees. Further, the platform has no inactivity fees, and there is no withdrawal fee if the trader uses an ACH transfer.
Moreover, for non-US clients, the only option available is withdrawal through wire transfers which costs $25. Even the TD Ameritrade charges for aper statements that cost around $2.
The minimum deposit of TD Ameritrade is $0 for US forex brokers traders if they select a primary cash account. Moreover, one should note that the minimum deposit would be higher for certain TD Ameritrade account types and user trading preferences.
Besides, the minimum deposit required for non-us clients will depend upon the type of account the user chooses for Trading. For instance, for Malaysian and Singaporean clients, TD Ameritrade charges a minimum deposit of $3500. As for the mode of payment methods, it supports credit cards and debit cards.
Advantages of TD Ameritrade
Let us discuss some of the advantages offered by TD Ameritrade online brokers-
- TD Ameritrade offers a wide range of investment selections by providing a full range of investment categories, including futures, Forex, and bitcoin futures options for its clients.
- It also offers low minimum and low-cost funds by offering 13,000 mutual funds on its trading platform with fewer expense ratios. Besides, it is an ideal broker for beginner investors.
- It offers commission-free trades and free online stock, options, and ETF trades. The trader should also note that options trades cost $0.65 per contract, which several brokers offer.
- TD-Ameritrade offers a virtual trading simulator called PaperMoney Simulator, where the user can trade by using fake trading accounts on the site. This PaperMoney Simulator is a desktop-based platform. For non-customers, they can register for a 60 day trial period so that we can be familiar with what they are committing to.
- TD Ameritrade offers two types of trading platforms along with a mobile version. The TD Ameritrade layout allows you to trade almost anything and use every feature that every investor needs, like research, identity, Robo advisors, trade stock, ETF bonds, Mutual funds, and options; many investment choices are provided to active investors that are the one thing that makes it unique along with comparison service tab to compare past performance.
- TD Ameritrade mobile app can be a companion to the desktop trading platform, and its mobile trader is focused on the advanced trading professionals by offering them several tools.
- These online brokers also have TD Ameritrade mobile web, a browser-based platform optimized for mobile devices. Compared to similar brokers, these features are supported by many others like Interactive Brokers which are helpful for beginner investors.
Why Should You Choose TD Ameritrade?
- TD Ameritrade web platform offers its financial products and services for all types of traders starting from new, intermediate, and advanced level traders. It also offers multiple trading platforms over different accounts by offering the traders a choice when they use TD Ameritrade’s platforms. Retail investors can open standard brokerage accounts, Roth IRAs, and ESA (Education savings accounts)
- The mobile app has a great UI and offers a range of affordable asset classes, and the clients can use it to trade stock, mutual funds, bonds, options, currencies, futures, and ETF trades.
- TD Ameritrade has dedicated and exceptional customer service, 24×7 through email and phone. Further, a live chat option is available during working hours, and live webcasts are also available as needed. The staff mostly are previous market makers themselves. Additionally, it has the physical presence of branches and is open throughout the country.
- Filling up an application form to open a Margin account or a Nonmargin one with TD Ameritrade is very easy. The standard brokerage account can be opened in no time; even open online brokerage services are provided. The Non-margin account does not have minimum deposits, and the trades are with no commission, and reasonable margin rates. If you have any doubts or problems, customer support can be reached 24×7. Note: (TD Ameritrade was founded in 1975 as one of the first online brokerages in the United States.)
- TD Ameritrade gives you educational materials about using the platform for its active traders. It also offers the Thinkorswim learning center by providing how-to articles and several educational videos that cover the site’s impressive features and makes it stand out from other brokerages.
- TD Ameritrade layout several powerful trading tools by keeping in mind different types of customers and attracting professional traders to the platform by offering personalized portfolios. It developed the platform with research, Robo advisors support, and the help of educational tools that can benefit the traders and offer advisory or brokerage services, these services are similar to the interactive Brokers Platform.
- It also has Robo advisor support and offers managed portfolios where traders can trade with the support of payment methods like credit cards.
- As per our TD Ameritrade review, and opinions expressed by users, we can say that it is one of the first of a kind to provide commission-free ETFs and mutual funds for its traders. In this desktop trading platform, traders can access several ETFs and mutual funds without paying a commission, which is considered one of this broker’s most advantageous features. It also offers a specialized security screener to help fixed income investors.
- Trading is the most straightforward; users enter their ticker symbol and start ordering with its spread-out branch offices around the world.
- TD Ameritrade’s market orders execution technology results in better prices than published quotes, thus saving through best price improvement.
- The broker uses proprietary order routing technology, with which clients can also direct route orders to specific options and exchanges.
- TD Ameritrade offers an array of educational tools for its clients, and it also helps them understand how to use the various platforms. Using the available tools in educational libraries lets users develop their trade strategies and investment goals; many platforms like interactive brokers add education tools to their arsenal.
- TD Ameritrade offers research and current streaming news updates from several sources like Barrons, Morningstar, S&P global, market watch, the new york times, etc. The traders can get the related news on earning reports of current events and the economic data delivered to their screen, as it has a big reach and branch offices are spread worldwide.
- The learning center offered by TD Ameritrade comes with several articles and video demonstrations that help the traders to learn about the trading platform, a standard web platform, and the mobile apps TD Ameritrade provides, thus making it an industry leading education provider for traders. It’s an education center containing all organized materials in its mobile app. It also has won a Campus Forward Award Winner for 2022.
TD Ameritrade web based platform has Forex trading in over 20 currencies where it can mix and match. It offers 73 Forex pairs, including USD/CHF, ZAR/JPY, and several more.
The trader should know that forex investors are not charged any commission, yet spreads can vary. Forex trading can be done 24×6, and all the positions should be liquidated by the end of the night.
TD Ameritrade offers its clients options trades when they get access to margin. Besides, by using thinkorswim, options trading has several interactive tools like option screeners, probability analysis tools, fixed income reports, etc. The trader can do options trading for free, but each contract is charged to which TD Ameritrade charges $0.65 fees per trade.
If the trader likes the Thinkorswim platform for their desktop, they will also like the mobile application offered by Thinkorswim. The mobile application features offer the clients a full-fledged trading experience with the convenience of using a smartphone.
They can trade or use PaperMoney along with the trading, range of order types, and analysis tools which include several options. New traders can download or use the thinkorswim mobile app at their convenience.
The Thinkorswim desktop platform is an award-winning platform suitable for active traders and experienced traders. Thinkorswim desktop offers a wide choice of tools, customize charts, analytical tools, resources, and customizable views for Experienced and professional investors, and serious traders can execute the trades within a few clicks.
The platform offers customizable portfolio analysis, the TD Ameritrade app also supports the feature, and this portfolio selection helps the manager choose the best resources in terms of profit.
TD Ameritrade offers several tools for research. Below given are a few of them –
TD Ameritrade has a live streaming financial network and a daily TV network, including market analyses and trader education. This broker is the only online broker to provide live broadcasting service during market hours. This TD Ameritrade network helps you gain more insight. Even investors can stream video with the network.
TD Ameritrade Network provides daily market commentary and technical analysis of various assets through the Ticker tape. The content is comprehensive and covers day-to-day markets. It also offers information about savings, general finance, trader education, retirement, international markets, and several more, like most of the online brokerage industry has in its arsenal. Along with ticker tape, TD Ameritrade publishes a quarterly print and digital magazine, Thinkmoney, which focuses entirely on educational content.
The website of TD Ameritrade provides you with several unique tools, for example, social signal tools that provide some of the real-time streaming feeds and summary charts of several brands. By using myTrade, the users can chat in the available chat rooms and share their trading ideas via myTrade. So the Bottom line would be we can say that TD Ameritrade gives information throughout the trader community, and understanding how TD Ameritrade work makes your trade easier.
TD Ameritrade is considered one of the most influential investment organizations in the United States; it offers extensive customer service dedicated. The users on the TD Ameritrade can trade 24 hours a day. If they have any questions or issues, they can reach the great customer service representatives through phone, live chat, and email. Moreover, the live chat service is available on mobile and online trades accounts.
Some of the features of excellent customer service offered by TD Ameritrade are –
- TD Ameritrade customers get a phone line that can be accessed 24×7.
- TD Ameritrade chatbots are deployed on Facebook, Twitter, Apple business chat, Wechat, Twitter direct messages, and Facebook messenger.
- TD Ameritrade mobile trader app offers live chat support.
- The web platform also provides trading-related guides for Thinkorswim clients.
- TD Ameritrade customers support executives offer their support and demonstrate some of its features to the traders.
- TD Ameritrade’s virtual client service agent, Ask Ted, offers automated support by answering client questions and directing the traders to the required other content tailored to the website.
To conclude, we can say that TD Ameritrade web platform is one of the best brokers in the US and one of the well-known forex broker UK, which covers every aspect of trading. One of the main highlights is that it offers trades on options, stocks, bonds, and ETFs without commission.
TD Ameritrade customers get excellent services, including hands-on investing courses, portfolio management, high-quality research tools, and a wide range of mutual funds; the platform has no transaction fee, no account fees, low brokerage fees, and competitive pricing. Rates are comparable to other services. Despite all these features always know your personal finance limit.
So the bottom line would be, that the research and educational tools offered by TD Ameritrade are outstanding by offering the traders several tools and pretty much everything. Further, its Thinkorswim trading platform is currently considered one of the best available in the market, which also has a Thinkorswim app. It also offers excellent customer service, where the trader’s issues are sorted out in a short time.