TD Ameritrade Review

Overview

TD Ameritrade is considered one of the largest brokers of the Internet, and it is great in terms of offers, but also when it comes to customer communication. TD Ameritrade has been around for a few decades, but while they have enough experience to back them up, many people may be hesitant to trust them.

Fortunately, we did the research, and we know enough about the broker to compile a comprehensive review. In this post, you will find a lot of useful information about TD Ameritrade, and you will be able to decide if you want to use it in the future or not. Let’s get started!

Who Is TD Ameritrade for?

TD Ameritrade is considered a great alternative not only for trading newbies but also for experienced investors. People who are looking for a place with a lot of trading features, but also with great research should have a great time using TD Ameritrade.

The broker has a lot of features that would be useful for beginner investors, including great research that would prepare them for their trading adventures. The platforms are packed with lots of useful tools that will allow them to make progress and perform trades smoothly. Advanced traders can also benefit from this company – they will find useful tools and will be able to build an outstanding and diverse portfolio. The platform is also great for fund investors.

On top of that, TD Ameritrade may be used by individuals who are on a budget.

Things We Like

There are many aspects that make TD Ameritrade shine, and they are the reasons why we like the service a lot. First of all, TD Ameritrade offers a virtual trading simulator, something that not every online broker has. This type of simulator is made for more advanced traders or frequent ones. There is margin account access, as well as $100,000 in practice money.

TD Ameritrade also offers two trading platforms. Each one of these platforms comes with a mobile version as well. We love the fact that the mobile platform is very detailed and comes with many features, and it’s also easy to use.

Another thing we are fond of is the fact that TD Ameritrade provides a lot of educational materials and support for investors. Various materials are available in different formats. Anyone can access various slideshows, articles, videos, and quizzes, and there are also some in-branch presentations and seminars available. There is even a chatbot named Ted that you can ask for different things while using the platform.

Lastly, we really loved the fact that people have access to multiple tradable securities, some of them even requiring no transaction fee.

Things We Don’t Like

Something that bothered us regarding TD Ameritrade is the fact that people may have to go through several platforms if they want to be able to use certain tools. Some tools, such as the fixed income tools and the fundamental equity research, are only accessible on the website, whereas Thinkorswim, a separate trading platform, is where you can get some of the options-specific tools.

Also, we think there isn’t enough support or information available when someone is creating an account, particularly in terms of account types. While having multiple account types is great, newer investors will not know what each of them involves. It can be pretty confusing.

Safety and Regulation

TD Ameritrade wants to make the platform useful for both beginners and experienced traders, making the trading experience great for both categories. Still, that doesn’t mean you shouldn’t look for more information about the broker before you try it out. The more you know about it and its safety levels, the better you’ll know if using it is the right choice. Here is some more information about the broker.

Who Is TD Ameritrade?

TD Ameritrade is one of the largest stockbrokers based in the United States. It was founded in 1975, and it was initially known as First Omaha Securities. The Securities and Exchange Commission got rid of the fixed brokerage commission practice on May 1, 1975. Because of that, the large brokerage firm had the impression that nobody would be able to offer discounted commissions and become successful. However, First Omaha Securities was one of the very few that saw it as a great chance to succeed, and it turned into TD Ameritrade ever since. It is one of the largest brokers in the industry, constantly dedicated to making investing easier and more accessible.

Charles Schwab acquired the broker in October 2020, but the integration of both companies will happen during the following 18-36 months.

Is TD Ameritrade Regulated?

Fortunately, TD Ameritrade is regulated, so people can trade safely. The broker is regulated by three of the largest authorities, respectively the Financial Industry Regulatory Authority, the Commodity Futures Trading Commission, and the Securities and Exchange Commission.

Is TD Ameritrade Safe?

Overall, TD Ameritrade is considered safe mainly because it is a company with a long track record. But that is not the only thing that makes it safe. The broker offers some great protection for investors, and it also has a banking background. The only downside in terms of safety is the fact that no negative balance protection is offered.

Countries It Accepts Clients from

The broker mostly offers services for the U.S., but it is also available to people from a few other countries, such as Hong Kong, China, Singapore, Thailand, Malaysia, Taiwan, and Brazil. Meanwhile, people from Canada can use TD Direct Investing within the TD Group, but they will not have access to the TD Ameritrade platform. Even still, it is only possible to trade on U.S. markets, which can be a downside.

Awards

TD Ameritrade has had the privilege of being recognized as one of the best brokers. Stockbrokers rated it the #1 overall broker in 2021, and this is the third consecutive year this has happened. It was also named the Best Broker for Stock Trading Platform and Research by NerdWallet, as well as the top online broker in a study made by Investor’s Business Daily.

Range of Offerings and Products

TD Ameritrade has a lot of services to offer. In terms of tradable securities, you will have a large variety to choose from, making it much better than other brokers. You can trade ETFs, bonds, stocks, options, mutual funds, futures, forex, IPOs, and foreign ADRs. What’s better is that ETFs are commission-free, and there are also over 4,200 no-transaction-fee mutual funds.

Trading Platform

The broker has web, desktop, and mobile platforms available, allowing users to trade just the way they want. The web trading platform comes with a lot of order types, and it is user-friendly. It also has a two-step login, making it very safe. Sadly, the customizability is pretty limited. The mobile one is also just as amazing, and it can be used on both Android and iOS devices. Even better, if you have an Apple Watch, you will be more than happy to know that the app works on this device as well.

Account Types

What’s amazing about TD Ameritrade is the fact that it brings many account types to the table. You can pick from savings accounts, individual accounts, and more. The account type can be selected when registering on the platform.

Deposit Methods

Bank transfer is the only available method when it comes to depositing money. E-wallets and cards do not work for deposits. The good news is that the deposits have no fees.

Minimum Deposit

For the basic account, the minimum transfer is $0 for U.S. clients. Non-US clients may have to make a higher minimum deposit, such as $3,500. Different account types may also have different minimum deposits.

Withdrawals

Withdrawals can also only be done using bank transfers. Usually, they are not charged, but wire transfers can come with a fee of $25.

Demo Account

A demo account can be created on the Thinkorswim desktop platform.

TD Ameritrade Promotions

There may be a few promotions to keep an eye on. TD Ameritrade offers a few sign-up bonuses in some cases when you open specific types of accounts.

Client Support and Education

TD Ameritrade is rich in educational materials. You can access a variety of articles, videos, tutorials, and others. Thus, people can learn a lot by accessing the platform and searching through the resources. There is even a demo account for the Thinkorswim platform.

Verdict – Overall Rating

TD Ameritrade can be great for both beginner and experienced traders. It has educational materials and a bunch of tools that can come in handy for anyone. Besides, a demo account is available, while people can also open different types of accounts to meet their needs. Moreover, you can go through a variety of tradable securities.

The downsides are the lack of a more varied list of withdrawal and deposit options, as well as the fact that some tools are not available on all platforms. Overall, though, this is one of the best brokers out there.

Methodology

All brokers listed on our website are regulated by at least one financial regulator and have never been reported as a scam. Our reviews and overall scores are based on the key areas above, in a combination with our opinion and commentary.

The reviews are shared and discussed with the brokers, but the authors of our website always have the final word. Furthermore, we always strive to keep the information on our website updated and relevant for our readers.

What helps us stand out is that we always test our brokers with an anonymous live account, to ensure we deliver the most accurate information and experience to our readers. Finally, our reviews and evaluation are always independent of any financial compensation we may receive from the brokers.

Risk Disclaimer

There is a very high degree of risk involved in trading securities.

With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection, and market volatility that may substantially affect the price or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more at Wikipedia.

All investments involve risks and are not suitable for every investor. The value of securities may fluctuate and as a result, clients may lose more than their original investment. The past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk it does not assure a profit, or protect against the loss, in a down market.

There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. More details here.

Looking for more information on brokers and trading? Have a look at our trading guides:

• Best Forex Brokers for 2021
• Best Binary Options Brokers for 2021
• Best Online Stock Brokers for 2021
• Best Trading Apps for 2021

Review Sources

1. https://www.tdameritrade.com/

TD Ameritrade delivers the ultimate package for investors, including $0 trades, fantastic trading platforms, excellent market research, industry-leading education for beginners, and reliable customer service. This outstanding all-round experience makes TD Ameritrade our top overall broker in 2021.

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