Is TD Ameritrade Safe and Legitimate Brokerage Firm? Is TD Ameritrade or Thinkorswim a Scam? Are Your Money, Assets and Investments Insured?
Is TD Ameritrade Safe?
We are being asked a lot of questions on a daily basis on various investment related topics. There are few questions where our readers express
the following concerns:
- Is TD Ameritrade a scam? or is Thinkorswim a scam?
- Is TD Ameritrade safe company to keep money and investments?
- Is TD Ameritrade FDIC/SIPC insured?
- Is it a member of FINRA/SIPC?
First, we have to point out that we get these questions for ALL brokerage houses, big and small, and TD Ameritrade is not an exception. After all,
it's a company where millions of people keep their savings and investments, and after 2008 collapse of many investment banks (which some people
mistake with online investing firms such as TD Ameritrade) a lot of people are nervous about the health of financial companies in general.
The short answer to all these concerns is yes, TD Ameritrade is a legitimate, very safe brokerage house that has been in business for over 35 years.
We have had account with them since 2002. We did have some issues with company's order executions in the past but no questions about legitimacy or
safety of the company ever existed. In fact, TD Ameritrade is one of the three largest and best-known brokerage houses in the United
States. The firm is reviewed every year by major financial magazines, like Barron's and Kiplinger, and it always gets high scores.
You can read more about the company in our 2016 TD Ameritrade review.
Thinkorswim is an online brokerage firm that got acquired by TD Ameritrade but TDA keeps the brand alive because Thinkorswim trading platform
became the best and most recognized in the business. It is now one of the most widely used trading platforms among active traders. Read more in
2016 Thinkorswim review.
How Safe is My Money at TD Ameritrade?
In the article What happens if a brokerage becomes bankrupt we explain what happens
to customers' money if a brokerage firm goes into bankruptcy. Basically, all TD Ameritrade customers' brokerage accounts are insured by SIPC in a very
similar way that bank accounts are insured by the FDIC. In case of failure, customers will get back up to $500,000 each, including up to $250,000 for cash. This should ease
the fears of investors nervous about the safety of their nest egg at the brokerage firm.
Is TD Ameritrade Insured And Regulated?
TD Ameritrade is a member of FINRA and SIPC. FINRA (Financial Industry Regulatory Authority -
http://www.finra.org) is the largest independent regulator for all
securities firms doing business in the United States. Its chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
SIPC (The Securities Investor Protection Corporation - http://www.sipc.org)
either acts as trustee or works with an independent court-appointed trustee in a missing asset case to recover
funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that
are already registered in their names or in the process of being registered. SIPC is an important part of the overall system of
investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases
of investment fraud, SIPC's focus is both different and narrow: restoring funds to investors with assets in the hands of bankrupt
and otherwise financially troubled brokerage firms.
TD Ameritrade BBB Rating
TD Ameritrade BBB (Better Business Bureau)
Rating is A - click to see.
Total Closed Complaints - 74: Problems with Product/Service - 51, Advertising/Sales Issues - 8, Billing/Collection Issues - 12, Delivery Issues - 1, Guarantee / Warranty Issues - 2.
TD Ameritrade Review
Read full TD Ameritrade Review.
TD Ameritrade Promotion Offer
Trade free for 60 days + get up to $600.
Updated on 2/1/2016.