TD Ameritrade Review: Is This Brokerage Right for You?

Introduction

TD Ameritrade is one of the largest online brokerages in the United States, with a reputation for providing exceptional customer service and a wide range of investment options. If you’re considering opening an account with TD Ameritrade, this review will help you determine if this brokerage is the right fit for you.

TD Ameritrade’s Trading Platforms

TD Ameritrade offers three trading platforms: the thinkorswim platform, the TD Ameritrade mobile app, and the TD Ameritrade web platform. Each platform has its own unique features and benefits.

thinkorswim Platform

• Features: Advanced charting tools, real-time streaming data, customizable workspace
• User Interface: Complex and intimidating for beginners, but easy to navigate for experienced traders
• Pros: Offers advanced features for experienced traders, free for all TD Ameritrade account holders
• Cons: Steep learning curve for beginners

TD Ameritrade Mobile App

• Features: Easy-to-use interface, mobile check deposit, personalized news feed
• User Interface: User-friendly and intuitive
• Pros: Ideal for trading on-the-go, can be used on both Android and iOS devices
• Cons: Limited charting tools

TD Ameritrade Web Platform

• Features: User-friendly interface, customizable dashboard, integrated social media feeds
• User Interface: Easy-to-navigate, ideal for beginners
• Pros: Simple and easy to use, accessible from any device with an internet connection
• Cons: Limited charting tools compared to the thinkorswim platform

TD Ameritrade Account Types

TD Ameritrade offers several different account types to suit your investment goals and needs.

Standard Accounts

• Individual Brokerage Account: For individuals who want to trade stocks, bonds, ETFs, and other securities
• Joint Brokerage Account: For two or more people who want to share a single brokerage account
• Custodial Account: For minors who want to invest with the help of a legal guardian

Retirement Accounts

• Traditional IRA: Tax-deferred savings account for retirement
• Roth IRA: Tax-free savings account for retirement
• Rollover IRA: For individuals who want to transfer funds from a previous employer’s retirement plan
• SEP IRA: For self-employed individuals and small business owners

Education Accounts

• 529 College Savings Plan: For parents and grandparents who want to save for a child’s education
• Coverdell Education Savings Account: For individuals who want to save for a child’s education expenses

Specialty Accounts

• Trust Accounts: For individuals who want to manage assets for themselves or others
• Limited Partnership Accounts: For investors who want to invest in a limited partnership
• Business Accounts: For businesses that want to invest in securities

TD Ameritrade Commission and Fees

TD Ameritrade’s commission and fee structure is straightforward and transparent.

Commission on Stock and ETF Trades

• $0 commission on online stock, ETF, and option trades
• $0.65 per options contract

Commission on Options Trades

• $0 commission on online stock, ETF, and option trades
• $0.65 per options contract

Account Fees

• No annual, low-balance, or inactivity fees
• $75 outgoing account transfer fee

Margin Rates

• 7.75% for balances under $10,000
• 7.50% for balances of $10,000 to $24,999
• 7.00% for balances of $25,000 to $49,999
• 6.25% for balances of $50,000 to $99,999

TD Ameritrade provides a comprehensive suite of research and analysis tools to help you make informed investment decisions.

Market Research Tools

• Daily Market Update: A daily recap of the previous day’s market activity
• Market Calendar: An interactive calendar that highlights upcoming earnings releases and economic events
• Market Insight: In-depth market analysis and commentary from TD Ameritrade’s Chief Market Strategist

Investment Screening Tools

• Stock Screener: Filter stocks based on criteria such as market capitalization, dividend yield, and price-to-earnings ratio
• Mutual Fund Screener: Filter mutual funds based on criteria such as expense ratio, fund family, and Morningstar rating

Technical Analysis Tools

• thinkorswim Charts: A powerful charting tool that allows you to analyze stocks, options, futures, and forex
• MarketCast: A real-time data visualization tool that provides a visual representation of market activity

TD Ameritrade Customer Service

TD Ameritrade has a reputation for providing exceptional customer service.

Contact Options

• Phone support: 24/7 phone support for all TD Ameritrade account holders
• Live Chat: Chat with a customer service representative online
• Email support: Submit a support request via email

Support Quality

• Fast response times
• Knowledgeable customer service representatives
• Positive customer reviews

Response Times

• Phone support: Immediate response times
• Live Chat: Immediate response times
• Email support: Response times within 24 hours

TD Ameritrade Education and Resources

TD Ameritrade offers a wide range of educational resources to help you improve your investing knowledge.

Trading Resources

• TD Ameritrade Network: Live programming and on-demand videos covering a wide range of investing topics
• Webinars: Live and on-demand webinars hosted by industry experts
• Trading Articles: In-depth articles covering a wide range of investing topics

Investor Education

• Investor Education Center: A comprehensive resource center with educational articles, videos, and quizzes
• Trading Platform Demos: Interactive demos of TD Ameritrade’s trading platforms

Webcasts and Live Events

• Education webcasts: Live and on-demand webcasts hosted by TD Ameritrade’s Chief Market Strategist
• Local events: In-person events held at TD Ameritrade branches across the country

TD Ameritrade Security

TD Ameritrade takes security seriously and uses multiple layers of protection to safeguard your account.

Data Encryption

• 256-bit SSL encryption on all web pages
• AES-256 encryption on all mobile apps

Two-Factor Authentication

• Two-factor authentication available for all TD Ameritrade accounts

Fraud Protection

• TD Ameritrade monitors your account for suspicious activity
• TD Ameritrade reimburses funds lost due to unauthorized account activity

TD Ameritrade Pros and Cons

TD Ameritrade has several strengths and weaknesses to consider before opening an account.

Pros

• Wide range of investment options
• Comprehensive research and analysis tools
• Exceptional customer service

Cons

• Steep learning curve for beginners on the thinkorswim platform
• Limited charting tools on the TD Ameritrade mobile app

TD Ameritrade vs. Competitors

TD Ameritrade is one of the top online brokerages, but how does it compare to its competitors?

Comparison to Other Brokerages

• E*TRADE: Similar commission and fee structure, but fewer investment options
• Charles Schwab: Lower commission rates on options trades, but higher minimum balance requirements
• Fidelity: Lower commission rates on options trades, but fewer research and analysis tools

Key Differences

• TD Ameritrade offers more investment options compared to its competitors

• TD Ameritrade’s thinkorswim platform is more advanced than its competitors’ trading platforms
• TD Ameritrade’s customer service is highly rated compared to its competitors

TD Ameritrade Account Opening Process

Opening an account with TD Ameritrade is a straightforward process.

Requirements

• Social Security number or tax ID number
• Personal identification information
• Employment information

Application Process

• Complete the online application form
• Fund your account
• Start trading

Timeframe

• Account approval typically takes 1-2 business days
• Funds may take up to 5 business days to settle

TD Ameritrade Deposit and Withdrawal

TD Ameritrade offers several payment options for depositing and withdrawing funds.

Payment Options

• Electronic funds transfer (ACH)
• Wire transfer
• Check deposit
• Bill pay

Fees

• No deposit fees
• $25 wire transfer fee for outgoing domestic wires
• $50 wire transfer fee for outgoing international wires
• No withdrawal fees

Timeframe

• ACH deposits typically take 1-2 business days to process
• Wire transfers typically take 1 business day to process

TD Ameritrade Account Management

TD Ameritrade offers several tools for managing your account.

Account Access

• Online account access
• Mobile app access
• thinkorswim platform access

Account Customization

• Customizable dashboard
• Multiple account types available
• Automatic investment options

Statements and Tax Documents

• Monthly statements
• Tax documents, including Form 1099

TD Ameritrade Promotion and Bonuses

TD Ameritrade occasionally offers promotions and bonuses for new customers.

Current Promotions

• None at this time

Eligibility

• New customers only
• Must meet account funding requirements

TD Ameritrade Conclusion

TD Ameritrade is a solid choice for investors of all levels. Its wide range of investment options, exceptional research and analysis tools, and top-rated customer service make it a strong contender in the online brokerage space. However, the steep learning curve of the thinkorswim platform and limited charting tools on the mobile app may not be ideal for beginners.

Frequently Asked Questions (FAQs)

1. How does TD Ameritrade compare to other online brokers?
   TD Ameritrade is one of the largest online brokerages in the United States. It offers a wide range of investment options, exceptional research and analysis tools, and top-rated customer service. Compared to its competitors, TD Ameritrade offers more investment options and a more advanced trading platform.
2. Does TD Ameritrade have any promotions for new customers?
   TD Ameritrade occasionally offers promotions and bonuses for new customers. At this time, there are no current promotions.
3. What is TD Ameritrade’s commission on trades?
   TD Ameritrade offers $0 commission on online stock, ETF, and option trades. The commission on options trades is $0.65 per contract.
4. How do I open a TD Ameritrade account?
   To open a TD Ameritrade account, visit the TD Ameritrade website and complete the online application form. You’ll need to provide personal identification information, employment information, and your Social Security number or tax ID number.
5. What types of accounts does TD Ameritrade offer?
   TD Ameritrade offers several account types, including individual brokerage accounts, joint brokerage accounts, custodial accounts, retirement accounts, education accounts, trust accounts, limited partnership accounts, and business accounts.
6. Does TD Ameritrade offer mobile trading?
   Yes, TD Ameritrade offers a mobile app for trading on-the-go. The app is available for both Android and iOS devices.
7. How secure is TD Ameritrade’s platform?
   TD Ameritrade takes security seriously and uses multiple layers of protection to safeguard your account. The platform uses 256-bit SSL encryption on all web pages and AES-256 encryption on all mobile apps. Two-factor authentication is also available for all TD Ameritrade accounts.
8. Does TD Ameritrade offer investor education and resources?
   Yes, TD Ameritrade offers a wide range of educational resources, including webinars, articles, videos, and quizzes. The platform also offers trading platform demos and live programming covering a wide range of investing topics.
9. Can I trade options on TD Ameritrade?
   Yes, TD Ameritrade offers options trading. The commission on options trades is $0.65 per contract.
10. Does TD Ameritrade offer paper trading?
    Yes, TD Ameritrade offers a paper trading account that allows you to practice trading without risking real money. The paper trading account uses real market data to simulate the trading experience.

Thank you for taking the time to read our TD Ameritrade review. If you’re interested in learning more about other online brokerages, we invite you to check out our reviews of E*TRADE, Charles Schwab, Ally Invest, Vanguard, and Robinhood for more information and comparisons.