TD Ameritrade Review

Range of Instruments and Fees

TD Ameritrade offers a huge selection of trading instruments, ranging from Stocks and ETFs to Forex to Futures and Options. It is important to note you are trading the actual products, not contracts for different products (CFDs) which are not available in the US.

Commission-free ETFs and Stock trading

In 2019, TD Ameritrade (like many other stockbrokers) in the United States waived commissions charges on online Stocks and ETFs listed on US exchanges. Over-the-counter (OTC) stocks not listed on a US exchange incur a $6.95 commission rate.

The brokerage firm allows access to several US stock exchanges as well as to some OTC markets, including the NYSE, NASDAQ, AMEX, OTCBB, etc. On this front, it matches the offering of some of its competitors, such as E-Trade and Fidelity.

TD Ameritrade offers about 2,300 ETFs and these along with Equities are available on the broker’s Web platform or ThinkOrSwim desktop platform with no subscription or platform fees. Active traders will find TD Ameritrade’s ThinkOrSwim platform offers more advanced trading tools, comprehensive charting, market screeners and more valuable features to trade stocks and ETFs.

Trading Mutual Funds

The broker offers more than 13,000 Mutual Funds from 740 fund providers, as well as a wide range of no-transaction-fee funds. TD Ameritrade only charges $49.99 brokerage commissions for mutual funds trades. However, the broker also allows commission-free trading on approximately 4,000 mutual funds.

There is a $49.99 trading commission charge in case clients sell those free Funds within 180 days following the purchase.

TD Ameritrade clients can also have access to powerful independent third-party screeners like Compare Funds, Mutual Fund Screeners, Focus List, Morningstar Instant X-Ray that allows investors to buy only the best mutual funds

Forex trading

With TD Ameritrade (TDA), clients can choose from over 70 currency pairs, which are traded in increments of 10,000 units commission-free. The broker’s compensation is reflected in the bid-ask spread. In comparison, market competitors such as E-Trade and Schwab do not offer Forex pairs in their product list.

The average EUR/USD spread is 1.06 pips during peak market hours, resulting in an average trading cost of $10.6 per side for every 100,000 units traded.

Experienced traders who seek reliable technology to implement their strategies will probably find the broker’s advanced ThinkOrSwim platform appealing. It comes with a full suite of technical analysis tools to bring Forex trading to a higher level.

Traders can also access ‘Paper Money’, a tool that enables you to experiment with advanced order types and test new trading strategies by using real market data without risking real money.

Bond trading

40,000 fixed-income instruments from over 100 dealers are available with TD Ameritrade. These US government bonds are available with no commission. However, in the case of corporate bonds, the brokerage firm will charge a $1 fee per bond on secondary transactions.

Options trading

TD Ameritrade grants access to eight options markets, including AMEX, BOX, CBOE, C2, ISE, NASDAQ, NYSE BATS and PHLX.

Online options trading with this brokerage is associated with a contract fee of $0.65 per options contract, which is similar to fees at competitors such as E-Trade and Charles Schwab.

By offering unique features such as Options Statistics, Options Probabilities and the Analyze Tab, the broker’s ThinkOrSwim desktop platform and ThinkOrSwim mobile app allow you to make better-informed options trades.

Futures trading

TD Ameritrade grants access to five Futures exchanges, including CME, CFE, LIFFE, ICE and ICE EU. Some 70 Futures products are available with a $2.25 fee per contract plus exchange & regulatory fees. Underlying assets include Energies, Metals, Currencies, Stock Indices, Interest Rates, Soft Commodities, Grains, Live Stock and Bitcoin.

Exchange fees depend on the Futures exchange and product, while regulatory fees, assessed by the National Futures Association (NFA), currently equal $0.02 per contract.

Cryptocurrency trading

TD Ameritrade Holding Corp has invested in ErisX, an entity that provides access to spot Cryptocurrency contracts and Crypto Futures contracts on one exchange. At present, experienced traders can take advantage of Bitcoin Futures offered by TD Ameritrade.

The main disadvantage is the high account minimum requirement ($25,000) to start trading Bitcoin futures.

Non-Trading Fees

As for TD Ameritrade’s non-trading fees, we should note that the broker does not charge an inactivity fee or an account fee. However, there are service fees, exception fees, regulatory fees, and market data & news fees that you need to be aware of.

In this category, based on our star scoring system, TD Ameritrade scored 4.5 points out of 10 points.

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Leverage and Margin Requirements

With TD Ameritrade, clients can open a margin account in order to access leverage in support of their trading strategies. In other words, they can borrow money from the broker to trade but have to pay interest.

The broker’s margin requirements depend on the respective current base rate (8.25% since Sept 20th 2020) and clients’ debit balance. The table below visualizes the applicable margin rates for different debit balance tiers.

When margin trading, there is a minimum deposit of $2,000.

In this category, based on our star scoring system, TD Ameritrade scored 4 points out of 10 points.

Trading Platforms

TD Ameritrade’s suite of trading platforms and trading tools accommodates the needs of both active traders and everything an average investor needs. TD Ameritrade has several trading platforms on offer, including:

• Classic Web Platform
• Next-Gen Web Platform
• TD Ameritrade Mobile Trader
• ThinkOrSwim Desktop
• ThinkOrSwim Web
• ThinkOrSwim Mobile

The following table provides a quick look at some standard features offered by all six platforms.

All TD Ameritrade platforms do have advanced features, with ThinkOrSwim Web being the only trading platform that does not grant access to Level II Price Quotes on Shares and Options.

The Next-Gen Web Trading Platform

Built on the smart features of the broker’s Classic Web Platform, the Next-Gen Web Platform offers a clean design and intuitive navigation, allowing clients to keep up with the latest developments in the market or to initiate a trade directly from the main interface.

In addition to useful features integrated into the interface, Next-Gen Web trading platform also offers real-time market updates, along with fundamental data and third-party stock research from TipRanks. Other innovative features and trading tools include:

• Portfolio Planner – a free tool that allows clients to select a model from a list of pre-built asset allocation models (conservative, moderate, moderate growth, growth, aggressive), to customize an allocation model of their own, or to establish a basket of individual securities and assign allocations to each of them
• Alerts Setup – via email and mobile. Clients can track different metrics based on prices, volume, and rating of trading positions in their watchlists.
• Stocks Overview – a tool that allows clients to view earnings, volume, social sentiment, and the latest news regarding the stocks they own or watch
• SnapTicket – a fixed window with trade order management that doesn’t change when you navigate on the platform
• Watchlists – clients are able to view multiple watchlists, presented simultaneously, to keep track of their present and potential investments with no interruption
• Calendars – clients can track key events such as stock splits, earnings or dividends
• GainsKeeper – a capital gains calculator that allows clients to track capital gains or losses

Mobile Trading with TD Ameritrade App

TD Ameritrade Mobile is a trader app, which gives clients the basics to manage their TD Ameritrade account. The mobile app is equipped with advanced charts, real-time quotes, watchlists, alerts, technical indicators and it can be synchronized with the desktop platform.

This user-friendly app is compatible with Android-based smart devices, as well as with iOS-based devices, including Apple Watch.

Additional capabilities include access to constant market news, analyst reports, daily updates and third-party research as well as access to e-Documents (tax documents in PDF format for the past seven years and statements for the past ten years).

The ThinkOrSwim Desktop Platform

TD Ameritrade’s ThinkOrSwim offers elite-level trading tools, market insights, and a load of unique features, all of which bring trading experience to a higher level.

TD Ameritrade’s flagship trading platform ensures clients will benefit from the most sophisticated tools including:

• Access to a huge amount of economic data (more than 400,000 economic indicators from six continents)
• Access to In-App Chat option and Chat Rooms
• Ability to set custom alerts and synchronize alerts, trades or charts across all client devices
• Access to a full suite of technical analysis tools – over 400 indicators and 20 drawing tools are available, while clients are also able to create algorithms of their own with the thinkScript tool
• Access to Options Statistics – clients can view implied and historical volatility of underlying assets, or the current day’s option volume
• Access to Company Profile – a third-party research tool that provides insight into revenue drivers of a particular company
• Access to Live-Streaming Media content – clients can receive news feeds directly from CNBC and TD Ameritrade Network
• Access to other unique tools such as Strategy Roller, Market Maker Move, Stock Hacker and Market Monitor

ThinkOrSwim Mobile App

Designed and optimized for Android- and iOS-based devices, TD Ameritrade’s ThinkOrSwim mobile app brings the power of the desktop platform to your mobile phone.

Having a customizable interface, the mobile app allows traders to:

• Analyze the potential profitability and risk of their positions and to stress test their portfolios with an innovative analyze feature
• Scan multi-touch charts with an array of technical studies
• Get access to live news and market insights with TD Ameritrade Network and CNBC
• Master a trading strategy without risking real money with a paperMoney account with $100,000 in virtual funds
• Receive live support on specific matters by chatting with a trading specialist

Order Execution Statistics

When you submit an order for stocks, penny stocks, ETFs, currency pairs or any other financial instrument, TD Ameritrade ensures fast speeds of 70ms. In the stock market, the fast order speed can lead to price improvement savings of around $2.11 for every 100 shares traded.

In this category, based on our star scoring system, TD Ameritrade scored 6.5 points out of 10 points. 

While the platform offering of TD Ameritrade as very good, they do not offer MetaTrader 4 (MT4). If you wish to trade with MT4 then have a look at the best MT4 brokers for US traders.

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Minimum Deposit

TD Ameritrade does not have a minimum deposit requirement for trading on a Standard brokerage account (cash account). However, it is worth noting electronic funding does have a minimum requirement of $50. On the other hand, as we already discussed, margin trading and trading with managed portfolios are associated with a particular account minimum.

Another specific circumstance to note is that the only base account currency the brokerage allows includes the US Dollar. Funding with other currencies will be subject to a conversion fee.

When it comes to deposits and withdrawals, a big advantage is that TD Ameritrade does not charge any fees. The only exception is fund withdrawal via wire transfer, in which case a $25 fee is charged by the corresponding bank.

There are several account funding options available with TD Ameritrade:

• Electronic Bank Deposit (ACH) – the transfer is completed within 5 minutes, while the minimum and maximum deposit amounts are at $50 and $250,000 respectively
• Wire Transfer – the transaction completes within 1 business day and there are no deposit limits,
• Account Transfer from Another Firm – clients can transact stocks, options, ETFs or other assets to their TD Ameritrade account from another brokerage. The transfer could take up to one week, while there are no deposit limits.
• Funding by Check – clients can send a check for deposit into a new or existing account with the broker. The transaction completes within 1-3 business days, while no deposit limits are imposed.
• Clients can also deposit physical stock certificates in their name into an individual brokerage account. The transaction completes within 1 business day.

In this category, based on our star scoring system, TD Ameritrade scored 5.5 points out of 10 points. 

Customer Service

TD Ameritrade offers outstanding customer support service available 24/7, which means they are open even during weekends. Client support is carried out via several channels:

• Live chat
• Email and Fax
• Social media platforms – Facebook Messenger, Twitter or text messages
• Over the phone – phone support line is available in three languages (English, Spanish and Chinese)

The broker’s phone support and live chat options met our expectations, as we received relevant answers to our inquiries – an agent got in touch with us within several minutes. Additionally, TD Ameritrade has a virtual agent (“AskTed”), which directed us to a relevant FAQ page.

Educational Resources

The broker’s online educational resources bring into a single place a variety of trading materials tailored for all types of investors. TD Ameritrade probably has the most extensive collection of free online educational resources.

New investors can access online training, how-to-do lessons, articles, video tutorials to webcasts, and real-time market insights from industry experts via TD Ameritrade Network. The education offerings include the following key resources:

• Immersive Curriculum is broken down into step-by-step trading lessons and trading strategies used by savvy investors
• Insightful Articles covering a range of topics, including market news, investing, trading, retirement, personal finance, tools and thinkMoney magazine
• Webcasts that can be accessed on-demand on various topics (education onboarding, active trader, portfolio management, investing, and platform demos)
• In-person workshops and conferences – provides the perfect place to network with other fellow minded traders
• TD Ameritrade Network – a streaming broadcast service that rivals Bloomberg TV and long-time cable news CNBC. The most relevant live shows include Weekend Trader, Futures with Ben Lichtenstein, Morning Trade Live, Fast Market and Real Talk.

In this category, based on our star scoring system, TD Ameritrade scored 8 points out of 10 points. 

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Regulation

TD Ameritrade is a trademark, co-owned by TD Ameritrade IP Company, Inc. and the Toronto-Dominion Bank. TD Ameritrade complies with strict regulatory standards imposed by:

• The Financial Industry Regulatory Authority (FINRA)
• The Securities and Exchange Commission (SEC)
• The Commodity Futures Trading Commission (CFTC)

Due to its strong regulation, stock exchange listing and banking background, the broker can be considered safe. On the downside, it’s important to note that unlike FCA and CySEC regulated brokers which must offer negative balance protection to retail clients, TD Ameritrade does not offer this.

In this category, based on our star scoring system, TD Ameritrade scored 8 points out of 10 points. 

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