TD Ameritrade Review
TD Ameritrade is primarily a US brokerage that provides online trading across a wide range of financial products via professional platforms, effective trading tools, and a wealth of instructional materials. Fees are quite competitive, and there are account kinds to fit various investment objectives. They do not, however, provide the best forex trading condiitons and do not provide CFD trading. The funding possibilities are relatively restricted, and the account opening process is quite time consuming.
TD Ameritrade has provided trading services for millions of client accounts since way back in 1975. The broker has headquarters in Omaha, United States. Ameritrade bought TD Waterhouse USA from TD Bank Financial Group in 2006, forming TD Ameritrade, one of the largest discount brokerages in the United States — and the largest in terms of average customer trades placed per day.
TD Ameritrade, Inc. is a division of The Charles Schwab Corporation and a member of FINRA/SIPC. Moreover, the broker has multiple top-tier regulations, including FCA and MAS. The trademark TD Ameritrade is held jointly by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. TD Ameritrade, Inc. is a division of The Charles Schwab Corporation and a member of FINRA/SIPC. The trademark TD Ameritrade is held jointly by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. The broker is a public company and listed on NYSE with the ticker: AMTD.
TD Ameritrade offers a wide range of financial products from various asset classes such as forex, stocks, options, ETFs, mutual funds, futures, cryptocurrencies, commodities, indices, bonds, and IPOs. With this huge product portfolio and thousands of managed portfolio opportunities, the broker is considered one of the pioneers in the industry. The broker provides commission-free stocks, ETFs, and options trading. In addition, the spreads are as low as 0.5 pips.
TD Ameritrade offers a huge set of educational research resources. In addition, multiple funding options and the broker’s priority on clients’ funds’ safety also provide TD Ameritrade an edge over its competitors.
TD Ameritrade has been providing trading services for over 40 years under strict regulations of SEC and FINRA. The broker is listed on NYSE (Ticker: AMTD). A huge product selection helps traders get more trading and investing opportunities. The broker offers trading at minimal trading costs in terms of tight spreads and low commission fees.
TD Ameritrade provides the complex Thinkorswim Pro trading platform, which is an advanced trading platform for multiple devices and environments, with a bundle of features and tools. It is always nice to see a broker who cares about educating its clients, thus they provide a bundle of educational content, including trading guides, video tutorials, webinars, seminars, and TV channel. In addition, the broker offers 24/7 dedicated customer support to its clients and in-person support for US residents.
On the other hand, TD Ameritrade provides its trading services in a limited number of countries and with restricted leverage. The broker does not provide CFD trading and has a limited number of payment methods. Lastly, the broker does not provide any other trading platform such as MetaTrader or cTrader which are used by millions of day traders, whilst cryptocurrencies are currently limited.
Let’s summarise the advantages and disadvantages of TD Ameritrade.
TD Ameritrade offers a huge selection of financial products. These trading instruments include various asset classes such as forex, stocks, options, ETFs, mutual funds, futures, cryptocurrencies, bonds, and IPOs. The broker offers an opportunity to invest in portfolios as well as margin trading. Commission-free stocks and ETFs trading is a huge advantage for clients.
TD Ameritrade Instruments Summary
| Instruments | TD Ameritrade |
|---|---|
| Forex | ✓ |
| Stocks | ✓ |
| Indices | ✓ |
| Commodities | ✓ |
| Cryptos | ✓ |
| Options | ✓ |
| Bonds | ✓ |
| ETFs | ✓ |
| CFDs | x |
Commission and Spread Fees
Traders can benefit from commission-free equities trading if done online, while broker-assisted trades will incur a $25 cost; the same is true for ETF trading. Mutual funds have no expenses if they are front-loaded or no-transition-fee (NTF), whereas no-load funds have a $49.99 commission. Futures and options on futures are $2.25 per contract, plus exchange and regulatory costs, whereas Forex trading is commission-free, offset by spreads that are not disclosed on the website. Dividends, mergers, and acquisitions all have an influence on equities, ETF, and mutual fund holdings, which this broker relays on to traders. Overall, I found the costs to be reasonable and on par with competitors such as Robinhood. However, the forex spreads are not the lowest. You may take a look at IG as an alternative for trading forex with lower spreads.
Here is a summary of commissions and spreads on TD Ameritrade.
| Fee | Standard Account |
|---|---|
| Commission (per standard lot per side) | $0/$0.65 for US stocks |
| Spreads from | 1.1 for EUR/USD |
Deposit and Withdrawal Fees
TD Ameritrade does not charge any deposit fee for most of the methods. However, service charges from the service provider may be considered. Moreover, the broker does not charge any withdrawal fee from its clients.
Inactivity Fees
TD Ameritrade does not charge an inactivity fee from its clients.
TD Ameritrade offers a good variety of sophisticated, accessible, and adaptable trading platforms. These are supplied to clients at no cost and are accessible via web, desktop, and mobile. The trading platforms have a plethora of built-in tools and features to cater to investors of various skill levels and needs. You may explore different companies, place trades, receive access to real-time quotations, read live-streaming news, manage your portfolio, chat with financial professionals, and much more on the platforms, whether you are an active trader or a mid to long term investor.
thinkorswim Trading Platform
thinkorswim isn’t simply a suite of platforms for trade enthusiasts — it’s created by them. The cutting-edge desktop, online, and mobile interfaces are constantly enhanced based on real-time input from the large trading community. So that no matter how you want to trade, you always have access to the cutting-edge features and professional advice that traders crave.
thinkorswim web
The latest addition to the thinkorswim trading package is the thinkorswim web. This simple platform, which requires no installation, takes the main elements from the thinkorswim desktop and makes them easy to access and much easier to master. You have everything you need to become a better, more productive trader when you combine it with TD Ameritrade’s assistance and award-winning education.
thinkorswim online has an easy to use interface that prioritises the tools most important to your trade. You can log in from anywhere with simple web-based access and utilise prepared tactics to create orders with a single click. With a broader selection of items, you may broaden your portfolio and possible tactics.
Thinkorswim online, in addition to stocks, options, and ETFs, provides access to futures and currency for more complicated trading strategies. With a comprehensive set of forecasting tools ranging from simple charts to technical studies, you can make even more educated forecasts.
Before putting real money on the line, you can test your tactics on the powerful paper trading platform. Sign up for a paper money practise account to trade $100,000 in virtual money without risk. This can be a great way to familiarise yourself with the platform and practice your trading strategies.
thinkorswim desktop
Thinkorswim desktop provides access to elite-level trading tools as well as a platform supported by insights, education, and a dedicated trade desk. You can experience the unrivalled power of a fully personalised trading experience intended to assist you in mastering even the most difficult tactics and approaches.
Because you are always improving your trading tactics, the broker is constantly upgrading thinkorswim. TD Ameritrade’s skilled trading staff incorporates comments, ideas, and suggestions from traders like you to ensure that the platforms are constantly reinvented with the most up-to-date tools and features. Assisting you in navigating the market using cutting-edge technologies.
Via this superb platform, you can trade a variety of goods such as stocks, options, options on futures, ETFs, futures, and currency. You may also be able to employ options and futures in an IRA, as well as get additional trading leverage through margin or portfolio margin.
You can put your knowledge up against economic facts from the Fed. 400,000 data points from across the world assist you in discovering new important indicators and charting them over time against your own assessments to identify the best course of action.
You can use specified criteria to roll your covered call strategy forward every month to automate your plan. Examine firms from every viewpoint and examine the public’s perception of a company through time to help you make an informed trading decision.
With tailored notifications for the events you care about, you can strike when opportunity knocks. Choose from pre-selected lists of popular events or make your own using the extensive parameter set. This saves you from needing to watch charts all day waiting for your signal to appear.
thinkorswim mobile App
The thinkorswim mobile app puts the power of thinkorswim in the palm of your hand. The top-rated trading app, which is optimised for your phone, tablet, and even Apple Watch, allows you to place trades quickly and safely. On your terms, you can trade stocks, options, futures, and FX.
Thinkorswim mobile gives you access to all of your preferences and settings from the thinkorswim desktop, enabling fully synchronised market scans across all devices.
With over 300 technical charts and indicators at your disposal, you can manage your positions with useful tools and features from anywhere. The thinkorswim platform will sync with the chart graphics. When you overlay corporate and economic events, you may look back, look forward, and model the future.
By speaking with a trading professional in real-time, you may obtain fast assistance with accessing tools or placing trades, as well as answers to particular issues. Without leaving the trading app, you may even share your screen.
TD Ameritrade Platforms Summary
| Platform | TD Ameritrade |
|---|---|
| MetaTrader 4 (MT4) | x |
| MetaTrader 5 (MT5) | x |
| cTrader | x |
| Proprietary | ✓ |
| Desktop | ✓ |
| Web | ✓ |
| Mobile | ✓ |
| Social Trading | ✓ |
| Other | ✓ |
When you establish an account, you will discover the actual benefit of TD Ameritrade’s personalised education experience. Discover a completely comprehensive curriculum, which includes a diverse set of education tools ranging from market news and articles to videos and webcasts.
Trading courses
Open an account to have access to genuine coaches that can lead you through a variety of investing and trading subjects to help you become a more knowledgeable investor. The broker’s trading classes are available on your schedule, simple to follow, and packed with important information to help you achieve your objectives.
Articles
Whether you’re seeking daily market commentary, new insights on possible rising trends or general investment inquiries, The Ticker Tape’s extensive selection of articles has it all, so you can improve and construct well-informed trading strategies.
Videos
Watch one of the 200 instructional films and tutorials to become a more knowledgeable investor. Learn the fundamentals of investment principles and take advantage of step-by-step lessons so you can confidently use platforms, tools, and other educational resources.
Informative webcasts
Every week, you may choose from around 30 webcasts where you can gain valuable insights and information from the education coaches. Join live sessions with fellow traders to obtain answers from professional staff, whether you want to learn about real-time market circumstances or how to better use platform features.
Virtual and in-person events
In-depth instructional seminars on trading and investing will help you grow as an investor and network with others.
TD Ameritrade Network
You can receive timely market updates and insights that are free of fluff, noise, and political prejudice. Unlike typical cable channels, media affiliates’ programming on the TD Ameritrade Network broadcasts and streams live and on-demand market commentary. They don’t simply feed you the news; they analyse it so you can confidently apply market trends to your tactics.
Market News
Understand what drives the market’s ups and downs, and manage your assets accordingly by following the latest market news. I always like to see what is happening around the global markets as it can have a big impact on my trading decisions.
Personal Finance
Information is your most valuable asset, which is why the broker provides videos, articles, and other resources to assist you on your road to becoming a more knowledgeable investor. They provide you with an educational series from one of the industry’s premier financial gurus. When you create an account, you have access to additional material as well as a personalised experience tailored just for you.
How to Invest
When it comes to trading, the goal is to maximise your profits. The educational materials are intended to assist you in ensuring that you are trading in a way that will help you achieve your individual objectives.
How to Trade
Whether you’re new to trading or have progressed to more complex tactics, there’s always an opportunity for advancement. The extensive instructional programme is designed to help you discover new potential opportunities, avoid traps, and improve your overall trading skills.
Planning for Retirement
Discover information to help you maintain your plan in a volatile market. Check out a wide library of articles and videos to assist you in reviewing and maybe adjusting your portfolio to today’s climate.
TD Ameritrade Research and Education Summary
| Resources | TD Ameritrade |
|---|---|
| Market Analysis | ✓ |
| Guides | ✓ |
| Videos | ✓ |
| Webinars | ✓ |
| Autochartist | x |
| Trading Central | x |
| Economic Calendar | ✓ |
| Other | ✓ |
TD Ameritrade offers a limited number of options for funding and withdrawing cash from your trading account. Wire transfer, check, electronic bank deposit (ACH), external securities transfer, and physical stock certificates are all examples of payment methods. Accounts may only be established in USD currency; thus, currency conversion costs may apply if you do not fund in this currency. Some clients would find it easier if they offered credit/debit card funding, crypto funding, and online payment processors. If you are looking to fund your account using something other than wire transfer, Forex.com have a variety of other payment options.
TD Ameritrade Funding Summary
| Payment Method | Deposit | Withdrawal |
|---|---|---|
| Wire Transfer | ✓ | ✓ |
| Credit/debit Card | x | x |
| Electronic Wallets | x | x |
| Cryptos | x | x |
In the United States, TD Ameritrade is governed by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). They are also regulated by authorities in other countries, including Hong Kong’s Securities and Futures Commission (SFC). Additionally, US clients are covered by the Securities Investor Protection Corporation (SIPC) system. The SIPC is an investor protection plan created to shield clients against the loss of cash and assets in the event that the broker fails to meet their financial responsibilities.
TD Ameritrade Regulation Summary
| Regulator | TD Ameritrade |
|---|---|
| ASIC (Australia) | x |
| IIROC (Canada) | x |
| CySEC (Cyprus) | x |
| SFC (Hong Kong) | x |
| JFSA (Japan) | x |
| MAS (Singapore) | ✓ |
| FINMA (Switzerland) | x |
| FCA (UK) | ✓ |
| CFTC (USA) | ✓ |
| Other (SEC, FINRA) | ✓ |
TD Ameritrade Safety
It should be emphasised that some Trading Products, such as futures contracts, are not covered by the investor protection system and that the protection is not offered to all customers. There is no protection against negative account balances. Before opening an account with any brokerage, it is critical that you thoroughly go through all of the broker’s terms and conditions so that you have a clear knowledge of the protection given.
TD Ameritrade provides 24/7 customer services on live online chat, phone calls, or emails.
With $0 costs, a vast choice of products to trade, and free Thinkorswim access, TD Ameritrade appears to be one of the best discount brokers in the online brokerage industry right now, at least for active traders. This is significant for active traders with less money, particularly those who do not fulfil the minimal requirements to avoid the pattern day trader regulation. Many choices are now available to aspiring day traders. With its high-quality data, infinitely adjustable charts, and sophisticated stock scanning technology, TD Ameritrade’s thinkorswim platform is rigorous enough to meet the demands of most beginning active traders. Ameritrade has always been a popular brokerage firm especially for paper trading. It’s amazing how they emphasise paper trading because when traders are ready to go live, they’ll naturally want to stay with Ameritrade. A large part of learning is just being familiar with how to utilise a platform. Overall, I think they are worth strong consideration for anyone based in the USA, with Oanda being another option to consider.
