Is TD Ameritrade Safe and Legitimate Brokerage Firm? Is TD Ameritrade 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 and it always gets high scores. You can read more about the company in our 2016 TD Ameritrade review under this link.

Thinkorswim is an online brokerage firm that got acquired by TD Ameritrade. The Thinkorswim brand is kept alive because its trading platform became the most recognized in the business. It is now one of the most widely used trading platforms among active traders. Read more about it in 2016 Thinkorswim review here.


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 and investments if a brokerage firm goes into bankruptcy. Basically, all TD Ameritrade customer brokerage accounts are insured by SIPC in a very similar way that bank accounts are insured by the FDIC. In case of broker 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 TD Ameritrade Better Business Bureau complaints is 74. Here is a breakdown: 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 Investing Review.


TD Ameritrade Promotion Offer


Trade free for 60 days + get up to $600.


Updated on 6/2/2016.



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