TD Ameritrade is a renowned online brokerage that has consistently been a top choice for investors of all levels. With its user-friendly platform, extensive research tools, and commission-free stock and ETF trades, it offers a compelling value proposition. But is TD Ameritrade truly the right broker for you?
To answer this question, we’ll delve into a comprehensive analysis of TD Ameritrade, examining its strengths, weaknesses, and suitability for different types of investors. We’ll also compare it to other popular brokers, helping you make an informed decision about where to invest your hard-earned money.
Key Strengths of TD Ameritrade:
- Commission-free stock and ETF trades: This is a major advantage for investors who trade frequently or want to build a portfolio without incurring trading costs.
- Extensive research tools: TD Ameritrade provides access to a wide range of research tools, including fundamental and technical analysis, news feeds, and analyst reports. This information can be invaluable for making informed investment decisions.
- High-quality trading platforms: The TD Ameritrade web platform and the thinkorswim desktop platform offer a robust set of features and tools for both beginner and experienced investors.
- No account minimum: This makes TD Ameritrade accessible to investors of all income levels.
- Good customer support: TD Ameritrade offers 24/7 customer support via phone, email, and live chat.
Potential Weaknesses of TD Ameritrade:
- No fractional shares: Fractional shares allow you to invest in a portion of a share, which can be helpful for investors with limited capital. However, TD Ameritrade does not currently offer this feature.
- Limited cryptocurrency offerings: TD Ameritrade does not offer direct access to cryptocurrencies, although some crypto-based products are available through its over-the-counter market.
- High commission on OTC stock trades: TD Ameritrade charges a $6.95 commission on OTC stock trades, which is significantly higher than the commission for exchange-listed stocks.
Is TD Ameritrade Right for You?
TD Ameritrade is a good choice for a wide range of investors. including:
- Beginner investors: The user-friendly platform, educational resources, and commission-free stock and ETF trades make TD Ameritrade an ideal choice for investors just starting their investment journey.
- Active traders: The thinkorswim platform offers advanced charting tools, technical analysis, and real-time market data, making it a powerful tool for active traders.
- Investors who value research: TD Ameritrade’s extensive research tools can be invaluable for investors who want to conduct thorough due diligence before making investment decisions.
- Investors with a long-term perspective: TD Ameritrade offers a wide range of investment options, including stocks, bonds, mutual funds, and ETFs, making it suitable for investors who are building a long-term portfolio.
However. TD Ameritrade may not be the best choice for:
- Investors who want to trade fractional shares: TD Ameritrade does not currently offer fractional shares, which may be a drawback for investors with limited capital.
- Investors who want to invest in cryptocurrencies: TD Ameritrade does not offer direct access to cryptocurrencies, although some crypto-based products are available through its over-the-counter market.
- Investors who trade OTC stocks frequently: The high commission on OTC stock trades may make TD Ameritrade less attractive for investors who frequently trade in this market.
Comparing TD Ameritrade to Other Popular Brokers:
- Charles Schwab: Charles Schwab is another popular online brokerage that offers commission-free stock and ETF trades, a user-friendly platform, and extensive research tools. However, Schwab does not offer the same level of advanced trading features as TD Ameritrade’s thinkorswim platform.
- Fidelity: Fidelity is another well-established online brokerage that offers commission-free stock and ETF trades, a wide range of investment options, and strong customer support. Fidelity also offers fractional shares, which TD Ameritrade does not.
- Interactive Brokers: Interactive Brokers is a good choice for experienced investors who want access to a wide range of global markets and advanced trading tools. However, Interactive Brokers’ platform is more complex than TD Ameritrade’s and may not be suitable for beginner investors.
TD Ameritrade is a well-rounded online brokerage that offers a compelling value proposition for a wide range of investors. Its commission-free stock and ETF trades, extensive research tools, and user-friendly platform make it a great choice for both beginner and experienced investors. However, it’s important to consider your individual needs and investment goals before making a decision. By carefully comparing TD Ameritrade to other popular brokers, you can choose the one that best meets your requirements.
Additional Resources:
- TD Ameritrade Review: https://www.nerdwallet.com/reviews/investing/brokers/td-ameritrade
- TD Ameritrade vs. Charles Schwab: https://www.stockbrokers.com/review/tdameritrade
- TD Ameritrade vs. Fidelity: https://www.nerdwallet.com/article/investing/td-ameritrade-vs-fidelity
- TD Ameritrade vs. Interactive Brokers: https://www.nerdwallet.com/article/investing/td-ameritrade-vs-interactive-brokers
Disclaimer: I am an AI chatbot and cannot provide financial advice. Please consult with a qualified financial advisor before making any investment decisions.
TD Ameritrade fees and features data
The data collection efforts at StockBrokers. com are unmatched in the industry. The tables that follow provide more detail on the products and services this broker has to offer. With our Comparison Tool, you can also examine its products and services side by side with those of other brokers.
Apart from our in-house analyst’s painstaking annual data collection, each broker taking part in our review gets the chance to finish an extensive data profile. We then audit each data point to ensure its accuracy.
| Feature |  TD Ameritrade |
|---|---|
| Minimum Deposit | $0.00 |
| Stock Trades | $0.00 |
| Mutual Fund Trade Fee | Varies |
| Options (Base Fee) | $0.00 |
| Options (Per Contract) | $0.65 |
| Futures (Per Contract) | $2.25 |
| Broker Assisted Trade Fee | $25 |
| Feature | TD Ameritrade |
|---|---|
| IRA Annual Fee | $0.00 |
| IRA Closure Fee | $0.00 |
| Account Transfer Out (Partial) | $0.00 |
| Account Transfer Out (Full) | $75.00 |
| Options Exercise Fee | $0.00 |
| Options Assignment Fee | $0.00 |
| Feature | TD Ameritrade |
|---|---|
| Margin Rate Under $25,000 | 14.75% |
| Margin Rate $25,000 to $49,999.99 | 14.25% |
| Margin Rate $50,000 to $99,999.99 | 13.25% |
| Margin Rate $100,000 to $249,999.99 | 13% |
| Margin Rate $250,000 to $499,999.99 | 12.75% |
| Margin Rate $500,000 to $999,999.99 | Varies |
| Margin Rate Above $1,000,000 | Varies |
| Feature | TD Ameritrade |
|---|---|
| Stock Trading | Yes |
| Margin Trading | Yes |
| Fractional Shares | No |
| OTC Stocks | Yes |
| Options Trading | Yes |
| Complex Options Max Legs | 4 |
| Futures Trading | Yes |
| Forex Trading | Yes |
| Crypto Trading | No |
| Crypto Trading – Total Coins | 0 |
| Mutual Funds (No Load) | 3698 |
| Mutual Funds (Total) | 5876 |
| Bonds (US Treasury) | Yes |
| Bonds (Corporate) | Yes |
| Bonds (Municipal) | Yes |
| Advisor Services | Yes |
| International Countries (Stocks) | 0 |
| Feature | TD Ameritrade |
|---|---|
| Order Type – Market | Yes |
| Order Type – Limit | Yes |
| Order Type – After Hours | Yes |
| Order Type – Stop | Yes |
| Order Type – Trailing Stop | Yes |
| Order Type – OCO | Yes |
| Order Type – OTO | Yes |
| Order Type – Broker Assisted | Yes |
| Feature | TD Ameritrade |
|---|---|
| Education (Stocks) | Yes |
| Education (ETFs) | Yes |
| Education (Options) | Yes |
| Education (Mutual Funds) | Yes |
| Education (Bonds) | Yes |
| Education (Retirement) | Yes |
| Retirement Calculator | Yes |
| Investor Dictionary | Yes |
| Paper Trading | Yes |
| Videos | Yes |
| Webinars | Yes |
| Webinars (Archived) | Yes |
| Progress Tracking | Yes |
| Interactive Learning – Quizzes | Yes |
| Feature | TD Ameritrade |
|---|---|
| iPhone App | Yes |
| Android App | Yes |
| Apple Watch App | Yes |
| Trading – Stocks | Yes |
| Trading – After-Hours | Yes |
| Trading – Simple Options | Yes |
| Trading – Complex Options | Yes |
| Order Ticket RT Quotes | Yes |
| Order Ticket SRT Quotes | Yes |
| Feature | TD Ameritrade |
|---|---|
| Market Movers (Top Gainers) | Yes |
| Stream Live TV | Yes |
| Videos on Demand | Yes |
| Stock Alerts | Yes |
| Option Chains Viewable | Yes |
| Watch List (Real-time) | Yes |
| Watch List (Streaming) | Yes |
| Watch Lists – Create & Manage | Yes |
| Watch Lists – Column Customization | Yes |
| Watch Lists – Total Fields | 514 |
| Feature | TD Ameritrade |
|---|---|
| Charting – After-Hours | Yes |
| Charting – Can Turn Horizontally | Yes |
| Charting – Multiple Time Frames | Yes |
| Charting – Technical Studies | 400 |
| Charting – Study Customizations | Yes |
| Charting – Stock Comparisons | Yes |
| Feature | TD Ameritrade |
|---|---|
| Active Trading Platform | thinkorswim |
| Desktop Trading Platform | Yes |
| Desktop Platform (Mac) | Yes |
| Web Trading Platform | Yes |
| Paper Trading | Yes |
| Trade Journal | Yes |
| Watch Lists – Total Fields | 514 |
Is TD Ameritrade trustworthy?
Both Charles Schwab, the company’s new corporate parent that acquired TD Ameritrade in October 2020, and the company itself are reliable. Your U. S. brokerage account is protected by the Securities Investor Protection Corporation up to $500,000 per customer, including a maximum of $250,000 cash, in the extremely unlikely event that TDA becomes insolvent. In order to provide extra third-party coverage for accounts that surpass SIPC limits, the firm has This coverage doesn’t protect against investment losses.
Charles Schwab vs. TD Ameritrade vs. Fidelity vs. E*Trade
FAQ
Is TD Ameritrade a legit broker?
Why not to use TD Ameritrade?
What broker is better than TD Ameritrade?
Can I trust TD Ameritrade?
Is TD Ameritrade a good broker for Education?
TD Ameritrade stands above the rest when it comes to the range and depth of education resources, winning our best broker for education category. Users have access to learning material across a wide variety of channels and formats across desktop, mobile, and web.
Does TD Ameritrade offer online trading?
TD Ameritrade employs well-balanced online and mobile trading platforms that include versions for both new and experienced investors, as well as a robo-advisor service. On top of this versatility, TD Ameritrade, which is one of the 10 largest U.S. banks, offers online equity, exchange-traded fund (ETF) and option trading on a fee-free basis.
Is TD Ameritrade a good brokerage firm?
TD Ameritrade is a full-service brokerage firm. It’s a fixture in the investment space, with its predecessor firm, First Omaha Securities, Inc., first opening for business in 1975. TD Ameritrade employs well-balanced online and mobile trading platforms that include versions for both new and experienced investors, as well as a robo-advisor service.
What types of securities does TD Ameritrade offer?
Tradable securities: Stocks, bonds, ETFs, mutual funds, options, futures. TD Ameritrade has been helping clients manage their finances since the ‘70s. The Omaha, Nebraska-based firm offers a large range of investment products from stocks to retirement plans. Here are some of its highlights.