TD Ameritrade – The Best Online Brokerage for Stock Trading

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TD Ameritrade App
TD Ameritrade App

TD Ameritrade is a publicly traded online brokerage that serves both individual and institutional investors.

Over 11 million customer accounts from all over the world are hosted by the company.

Investors purchase and sell securities such as equities, ETFs, mutual funds, options, futures, foreign currency, and fixed-income investments using the company’s computerized trading platforms.

Customers can trade these financial instruments on their computer or using mobile phone applications.

TD Ameritrade is based in Omaha, Nebraska, and has a significant trading presence in St. Louis, Missouri.

The initials “TD” are derived from the name Toronto-Dominion Bank, which is the company’s major shareholder.

About TD Ameritrade

TD Ameritrade was formed in 1975 by Joe Ricketts as First Omaha Securities, Inc.

Over nearly four decades, the brokerage has evolved into TD Ameritrade through many acquisitions and an IPO in March 1997. In the 1990s, it pioneered internet trading and was among the first firms to provide cheaper commissions.

Charles Schwab Corp. purchased TDAmeritrade in 2020. The businesses intend to finish integrating their online brokerage services by 2023. Until then, Schwab and TDAmeritrade will operate as separate brokerage firms.

TDAmeritrade currently serves 11 million clients with assets totalling more than $1 trillion. In addition, the firm serves as the custodian for over 6,000 independent registered investment advisors. TDAmeritrade clients execute around 500,000 trades every day.

TD Ameritrade Institutional

Over 6,000 independent Registered Investment Advisors (RIAs) and their clients rely on TD Ameritrade Institutional for full brokerage and custody services.

They provide smart operating solutions, innovative technology, tailored practice management, and flexible investment solutions, all with the purpose of providing exceptional service.

TD Ameritrade Institutional, as unwavering advocates for independent advisers, consistently speaks out on behalf of independent RIAs and their clients within the regulatory environment.

Their collaborative approach and new technology solutions enable us to spend less time navigating a one-size-fits-all solution and more time focused on exceeding your expectations.

TD Ameritrade Account Types

This broker offers six categories of accounts, according to its website: standard, retirement, education, specialized, managed portfolios, and margin trading.

The basic account provides access to all of the typical features, such as research, investment products, and trading platforms. Individual or joint standard accounts can be upgraded to include FX, futures, and options.

Retirement accounts include Rollover IRAs, Roth IRAs, and Traditional IRAs, each with its own set of tax benefits (and disadvantages). You can set up an education account to save for educational expenses, such as a 529 plan.

Individual trusts, company partnerships, and other non-traditional financial accounts are examples of specialty accounts. If you select a managed portfolio, the broker’s LLC will manage and grow your account for you. Finally, margin trading accounts allow you to borrow money from TD Ameritrade to increase your purchasing power.

What Does TD Ameritrade Offer?

TDAmeritrade is an excellent alternative for all investors, from beginners to professional traders, and offers a wide range of options and perks.

Here are some of its most noticeable characteristics.

In 2022, our readers chose TD

Ameritrade as one of the finest online stock brokerage businesses.

They regularly provide inexpensive fees and excellent trading tools, such as Thinkorswim.

Low-Cost Trading And Investing

On stock, ETF, and option trades, TDAmeritrade does not charge commissions.

They also feature one of the greatest selections of no-transaction-fee (NTF) mutual funds we’ve seen, with over 3,900 options.

However, there are per-contract costs for options ($0.65 per contract) and futures ($2.25).

However, one of the major benefits of using TD is that there are no account minimums. So you can start investing with TDAmeritrade even if you have a small starting amount.

One of the most significant disadvantages of trading with TDAmeritrade is that it currently does not offer fractional share investment. This is unfortunate since it makes it more difficult for investors with tiny balances to invest in equities or ETFs with high share prices.

If you’re specifically seeking for a broker who will allow you to invest in fractional shares, there are lots of options.

TD Ameritrade Education and Research

Because of its unrivaled research and education resources, we chose TDAmeritrade as our best online broker for beginners and best day trading platform for education.

Educational Resources

TD Ameritrade is a leader in online investing education.

  • Immersive classes are among their educational offerings. TDAmeritrade attempts to offer courses for both beginners and seasoned traders, such as Fundamentals of Futures Trading and Options for Volatility.
  • Articles and videos There are 200 educational videos, tutorials, and investing literature available.
  • Webcasts. Long-term investing, active trading, portfolio management, and market commentary are all covered by options.
  • The TD Ameritrade Network This live, streaming news channel provides market insights and strategy instruction from industry experts. “Futures with Ben Lichtenstein,” “The Watch List with Nicole Petallides “and” Morning Trade Live” are among the shows.
  • Trading in paper. The paper trading function of TD Ameritrade allows both new and experienced investors to test strategies before deploying real money.

Research Resources

TDAmeritrade provides a comprehensive set of investing research tools, including as third-party analyst reports and a range of screeners.

  • Market Edge. Provides fast market information and technical analysis.
  • Screeners. Use predefined screeners to find chances in stocks, options, mutual funds, or ETFs based on strong buys, lifespan, best alpha, or lowest expense ratio.
  • The Premier List.  Premier List is a quarterly resource compiled by Morningstar experts that focuses on no-transaction-fee mutual funds across 45 categories to provide you with a list of rigorously pre-screened products.
  • Market Java. Prior to the opening bell, this daily morning report provides you with the most recent market news, perspectives, and insights from reputable third-party research industry specialists.

Thinkorswim Trading Platform

TD Ameritrade provides two separate platforms.

The regular TD Ameritrade platform is for average users, while its recognized advanced trading platform is thinkorswim.

Regardless of the platform you choose, you will not be limited by traditional market hours because TDAmeritrade offers 24/5 trading.

Active traders, on the other hand, will want to use thinkorswim because it is one of the greatest trading platforms available today.

It allows investors to test their strategy by trading on paper.

It also includes over 400 technical studies as well as a slew of other charting tools such as monkey bars and renko charts.

TDAmeritrade has also done an excellent job of making thinkorswim available on a variety of platforms.

It is now available on the web, as well as on Windows, Mac, Android, and iOS.

Managed Portfolios

TD Ameritrade used to offer a robo-adviser service called “Essential Portfolios.”

However, as part of its merger with Schwab, TD has announced that Essential Portfolios will no longer accept new clients.

Customers are thus left with two money management options:

Portfolios that are selective and personalized

However, both charge larger fees than other robo-advisors.

The minimums are also quite high.

To be eligible for Selective Portfolios, your account balance must be at least $25,000, and your account balance must be at least $250,000 to be eligible for Personalized Portfolios.

Who TD Ameritrade Is For?

Because TDAmeritrade is one of the largest online brokers in the United States, it provides a variety of platforms aimed at different levels of competence.

The web-based and standard mobile app platforms are intuitive and simple to use for both passive and active investors.

However, because of its broad screening features, charting tools, and analytical analytics, the robust thinkorswim platform is arguably the best bet for casual traders and day traders.

Overall, TDAmeritrade’s trading platforms and overall products will impress passive investors, active investors, casual traders, and day traders.

Pros

  • Without a question, there is no better online broker to understand the fundamentals of stock market investing than TD Ameritrade. TD Ameritrade provides an unparalleled breadth and depth of education, including instructional videos, an online digital magazine called “tickertape,” a quarterly periodical called “thinkmoney,” daily streaming live market commentary on the TD Ameritrade Network, in-person instruction through live events, and virtual learning experiences through online workshops, webcasts, and courses.
  • TD Ameritrade’s selection of trading platforms makes the firm a perfect alternative for both the passive investor and the day trader.

The web-based and mobile platforms of TD Ameritrade promote simplicity and convenience of use, while the thinkorswim platform delivers strong features for experienced traders.

Cons

  • Fractional shares enable investors with limited cash to gradually add high-priced securities to their portfolio.

Unfortunately, TD Ameritrade does not allow for the purchase of fractional shares. This may not be the case for long, as TD Ameritrade has been officially acquired by Charles Schwab.

  • While TD Ameritrade does provide fractional shares, close competitors offer more cost-effective alternatives. Margin traders should be aware that TD Ameritrade’s margin rates are not as competitive as those of some competitors.
  • TDAmeritrade, unlike some of its competitors, does not automatically invest uninvested cash in a money market fund. Clients can, however, choose to participate in the sweep program or keep cash in an FDIC-insured account.

How Do I Open An Account?

It couldn’t be easier to open a TD Ameritrade account.

You can begin your account application online, or call 1-800-454-9272 for guided assistance at any time of day.

In either case, you should be up and running in a matter of minutes. Their account application is one of the quickest we’ve observed.

Don’t believe us when we say it’s simple to get started?

Begin your commission-free, no-minimum IRA today.

How to Access Your TD Ameritrade Account on a Computer

When you open a TD Ameritrade account, you will select a user ID and a password.

Once your account has been created, logging in is as simple as following these steps:

  • Go to the TD Ameritrade website.
  • Enter your username at the top of the page.
  • Enter your password next to your username.
  • Select the “Log in” option.

You will then be directed to your account page.

How To Log In to Your TD Ameritrade Account From a Mobile Phone or Tablet

TD Ameritrade has apps available on both Google Play and the App Store.

You can access your mobile account using the same user ID and password that you use to access your TD Ameritrade account on the website.

If your phone supports it, you can also use fingerprint authentication to log in to your account.

How To Retrieve a Forgotten User ID or Password

If you have forgotten your user ID, you can restore it by following these steps:

  • Go to the TD Ameritrade login help page.
  • Select “Retrieve user ID” from the drop-down menu.
  • Enter your Social Security number, tax ID number, or account number.
  • Enter your surname.
  • Enter your birth date.
  • Select the CAPTCHA checkbox.
  • Select the “Continue” option.

If you’ve forgotten your password, use these steps to recover it:

  • Go to the TD Ameritrade login help page.
  • Select the “Reset password” option.
  • Confirm your user ID.
  • Confirm your ZIP/postal code.
  • Select the “Continue” option.
  • On the following screen, specify how you want to receive the security code.
  • You can receive it via text, phone, or email.
  • To reset your password, enter the security code you were given.

In either case, TDAmeritrade can be reached at 800-669-3900 if you require assistance.

How To View Your TD Ameritrade Statement Information

Follow these steps to obtain your TD Ameritrade statements online:

  • Use your user ID and password to access your TD Ameritrade account.
  • Hover over “My Account” at the upper left of the page to bring up a pop-up menu.
  • Select “Statements” from the “History & Statements” menu.
  • Choose which statement you want to view.
How To Contact TD Ameritrade If You Have Trouble With Your Account

If you are a current client and are having problems with your TD Ameritrade account, please call customer care at 800-669-3900. Account support and service are available 24 hours a day, seven days a week.

The number 888-376-4684 is available in Spanish, but it is only staffed Monday through Friday from 9 a.m. ET to 5 p.m. ET. TTY services for the hearing challenged are available Monday through Friday from 8:30 a.m. ET to 5:30 p.m. ET at 888-723-8503.

Are There Any Fees?

TD Ameritrade charges no account opening or closing fees.

However, there is a $75 cost for a full account transfer.

If you choose one of TD’s wealth management alternatives, the following advising fees will apply:

  • From 0.75 percent to 0.90 percent for Selective Portfolios
  • 0.60 percent to 0.90 percent for personalized portfolios

Finally, while online and mobile trades are free of commission (for stocks, ETFs, and options), broker-assisted trades cost $25.

Is It Safe And Secure?

The servers of TD Ameritrade were hacked in 2007.

Over 6 million customers were harmed, prompting a class action lawsuit.

However, TD Ameritrade appears to have improved its security of its clients’ personal information since that time.

Their website employs 128-bit encryption, and their security team employs advanced anomaly monitoring and intrusion detection technology to intercept threats at the point of entry.

In terms of financial security, all brokerage assets are covered by SIPC insurance up to $500 million, and TD provides an additional $149.5 million in asset insurance through London insurers to each of its clients.

Through TD’s banking affiliates, cash in an Insured Deposit Account (IDA) is FDIC-insured up to $500,000.

How Do I Contact TD Ameritrade?

TDAmeritrade places a high value on customer service.

They provide phone help 24 hours a day, seven days a week, as well as email support and the option of in-branch service.

As part of their merger with Charles Schwab, TD closed around 200 branches in 2020.

However, over 200 locations remain accessible, including 55 that are solely TD Ameritrade offices and another 140 that will be shared by Schwab and TD personnel.

You can use TDAmeritrade’s branch search tool to identify the nearest office to your home.

You can reach a TD Ameritrade support agent by phone at 800-669-3900.

You can also contact someone at 898832 via Facebook Messenger, Twitter Direct Message, or SMS.

Is It Worth It?

Overall, TD Ameritrade has a lot of great options, like commission-free ETF trading, which make using their platforms both convenient and effective.

Their services are ideal for everyone, from new investors to seasoned traders searching for dependability and options from a trading platform.

TD Ameritrade Commissions and Fees

TD Ameritrade, like the rest of its major competitors, charges no trading commissions for online purchases of stocks and exchange-traded funds (ETFs).

The brokerage does charge commissions and fees that are broadly equivalent to other providers.

  • Futures and futures options: $2.25 each trade
  • OTC stock trades: $6.95 per deal
  • Broker-assisted trades: $25 fee per transaction

TDAmeritrade offers 13,000 mutual funds, approximately 4,000 of which are no-load, no-transaction-fee products.

This fund selection compares favorably to competitive online brokers.

Remember that TDAmeritrade, like several of its competitors, imposes a $49.99 cost if you sell most no-fee, no-load funds within six months after purchase.

Certain competitors, such as E*TRADE, may offer shorter holding periods, which may appeal to certain types of investors.

TDAmeritrade has one of the highest margin rates among the online brokers we looked at.

The cost for margin account balances less than $10,000 is 9.50 percent, and the price for balances between $10,000 and $25,000 is 9.25 percent.

Borrowers who borrow more than $1 million are eligible for the lowest margin rates (6.75 percent).

In instance, Interactive Brokers charges a flat cost of 2.60 percent on all margin borrowing.

In terms of service fees, TDAmeritrade falls somewhere in the middle.

However, TDAmeritrade recently won a lawsuit in which the assertion that “TDAmeritrade had failed to comply by its duty to seek the best execution for customer stock trades” was rejected.

TD Ameritrade Platform and Technology

Account Types

Customers of TD Ameritrade will find everything they need, from basic to specialist accounts, including:

  • Taxable brokerage accounts
  • Traditional IRAs, Roth IRAs, and rollover IRAs
  • SEP IRAs and SIMPLE IRAs for business owners
  • Solo 401(k), pension, or profit-sharing plans for small businesses
  • Coverdell accounts, 529 plans, and UGMA/UTMA accounts
  • Other specialty accounts include business, investing club, and charitable trust alternatives.
Web Platform & Mobile App

TDAmeritrade has a straightforward web-based trading interface with a mobile app, as well as the highly respected thinkorswim trading platform, which is available in desktop, web-based, and mobile app incarnations.

Users can trade stocks, bonds, ETFs, mutual funds, and options via the web platform.

It’s incredibly user-friendly, with features like live news, third-party research, and trading watch lists.

Ameritrade Thinkorswim Charting

The thinkorswim charting capabilities of TDAmeritrade are comparable to those of the best online brokers.

Thinkorswim is popular with technical analysts.

  • 400 technical studies
  • 20 sketching tools are among the charting tools.
  • Integrated chart trading
  • Drawing tools
  • Save chart settings as template
  • Historical trades
Order Types

TDAmeritrade offers every sort of order that an investor would require.

Aside from basic orders, advanced traders will benefit from conditional and durational orders.

  • Market, limit, day
  • Trailing stop
  • Good til cancelled (GTC)
  • One cancels the other (OTO)
  • Limit on open/close
  • Market on open/close
  • Short selling

Most market orders are filled at a lower price than the current quote thanks to sophisticated order routing technology.

As previously stated, TDAmeritrade gets compensated for order flow; direct trade routing is not possible.

Managed Portfolios by TD Ameritrade

Investors looking for managed accounts have various options.

Essential Portfolios, TD Ameritrade’s previous robo-advisor, has been replaced by Schwab Intelligent Portfolios.

This diversified, no-fee robo-advisor has a $5,000 minimum balance requirement and keeps a portion of customer assets in cash.

Schwab Intelligent Portfolios Premium provides access to financial experts for a one-time cost of $300 and a monthly fee of $30.

Selective Portfolios and Personalized Portfolios offer more advanced features—and greater fees—for larger amounts.

TD Ameritrade Mobile Apps

Investors who are always connected to their phones may appreciate the TD Ameritrade mobile apps.

The TD Ameritrade Mobile and thinkorswim apps perform similarly to the desktop platform and achieved near-perfect ratings in our study.

The TD Ameritrade mobile app has the following features:

  • Portfolio management
  • Market information, real-time quotes, and price alerts
  • Trading in stocks, ETFs, and options
  • Level II quotations
  • Education, includes stock, option, and investing strategy videos
  • Integration of social media
  • Independent research, analyst reports, and social signals

The thinkorswim app is great for professional traders who need to track their options, futures, and day trades.

Conditional orders and multi-leg options transactions will appeal to advanced investors.

The mobile app includes the majority of the charting and analysis functions.

Investors can communicate with a live trading specialist, watch video from the TD Ameritrade Network, and participate in chat rooms with other traders.

TD Ameritrade Range of Offerings

TD Ameritrade provides a comprehensive range of tradable asset classes, including standard stocks, mutual funds, and ETFs, as well as American depositary receipts (ADRs), penny stocks, and initial public offerings (IPOs) (IPOs).

Bond specialists and screeners can assist fixed income investors in populating this asset category.

The platform is widely regarded as a reliable option for options trading, with this type of trading available on both the web platform and thinkorswim, as well as the mobile apps.

When developing strategies, options specialists provide help.

Investors in futures and forex can trade 24 hours a day, seven days a week.

The cash management and banking features complement the investment assets well.

With the significant exception of Bitcoin futures, the only asset classes missing are fractional shares and cryptocurrencies.

OfferingAvailable?
StocksYes
ETFsYes
Mutual FundsYes
BondsYes
OptionsYes
FuturesYes
ForexYes
International MarketsYes (limited)
Penny StocksYes
Advisory ServicesYes
CryptocurrencyBitcoin futures only
Fractional SharesNo
Cash Management ServicesYes
TD Ameritrade Customer Service and Security

TD Ameritrade outperforms the competition in terms of customer service.

We tried TD Ameritrade’s email, phone, SMS, and chatbot responses several times and were impressed with their performance.

The tests resulted in short phone wait times, proper answers to our queries, and quick email responses.

The majority of phone calls were answered within one minute, with the largest wait time being 10 minutes.

Text messages were answered right away.

Emails were normally addressed within an hour, with the longest response time being three hours.

Every question was correctly answered, and the customer service employees were well-credentialed and trained.

The chatbot at TD Ameritrade was good, and it was swiftly substituted by a human care worker if it couldn’t answer a query.

The majority of investors will be satisfied with the firm’s security and insurance.

TD Ameritrade provides security elements that are industry standard.

  • Firewalls
  • 128-bit encryption
  • Two-factor authentication
  • Mobile security features

When users contact customer support, some competitors provide voice recognition as an additional degree of security, which TD Ameritrade does not.

For most investors, account insurance is more than adequate.

It contains the usual Securities Investor Protection Corporation (SIPC) coverage of $500,000.

As an added safeguard against firm failure or insolvency, TD Ameritrade automatically provides $149.5 million in supplemental insurance to each customer.

Additional coverage of up to $2 million is provided for cash assets.

Customers should be informed that no brokerage offers insurance to safeguard financial assets from losses caused by poor investment decisions or market downturn.

Td Ameritrade Phone Number (Contact Info)

call Telephone: 800-454-9272

location_on Company Address:
200 South 108th Avenue Omaha, NE 68154

Website: www.tdameritrade.com

FAQs

Is TD Ameritrade good for beginners?

Overall, it is the superior option if you’re a newbie searching for a broader range of trading products or an active trader seeking a more complex trading experience.

Is TD Ameritrade free?

TD Ameritrade provides commission-free trading of stocks, options, and ETFs and does not charge annual or inactivity fees, so you can open an account with the broker for free.

Does TD Ameritrade give you money?

When you open a new brokerage or retirement account by December 31, 2021 and meet qualifying deposit minimums, you can get up to $2,500 in new account incentives directly from the TD Ameritrade website. Earn $350 in bonus cash when you deposit $250,000 or more.

Is Ameritrade better than Etrade?

After six months of testing 15 of the best online brokers, TD Ameritrade (95.41 percent) outperforms E*TRADE (92.52 percent ). TD Ameritrade offers zero-cost trades, amazing trading tools, superior market analysis, industry-leading education for beginners, and dependable customer support.

Which TD Ameritrade app should I use?

It is rated #1 by stockbrokers.com and Barrons, and it has hundreds of five-star evaluations from app users. The technology of TD Ameritrade Mobile Trader allows you to trade equities, futures, and foreign currency, as well as options on all three.

Is the TD Ameritrade app free?

With its $0 minimum, free tools and research, and several trading platforms tailored at both novice and advanced traders, TD Ameritrade is difficult to match.

Is TD Ameritrade app safe?

In a nutshell, sure.

The Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (FINRA) oversee TD Ameritrade (FINRA).

Having said that, it is reasonable to claim that TD Ameritrade is a reliable online broker.

Is TD Ameritrade stocks good?

TD Ameritrade distinguishes itself as a top online stock broker with enticing features such as highly accessible customer assistance, in-depth and comprehensive stock trading research, no minimum account sizes, and competitive commission pricing.

What is TD Ameritrade margin interest rate?

The current base rate is 9.75 percent as of June 17, 2022.

Conclusion

TD Ameritrade is one of the industry’s best online brokerages, earning it the title of best brokerage for beginners in our lists. The award-winning thinkorswim trading platform is a favorite among active traders, providing a sophisticated yet user-friendly tool suitable for both pros and novices. TD Ameritrade’s extensive educational materials and exceptional customer service contribute to its ranking as one of the finest online brokerages.