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Is TD Ameritrade a Scam? Is TD Ameritrade Safe and Legitimate Brokerage Firm?
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I'm sometimes being asked the following questions: Is TD Ameritrade a fraud? Is it safe to use TD Ameritrade? Is account SIPC/FDIC insured? The short answer - Yes.
TD Ameritrade is a legitimate,
safe online broker and I have had account with them since 2002. I 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, best-known
and respected brokerage houses in the United States. It is reviewed every year by major financial magazines, like Barron's, Kiplinger and
Smart Money, and always gets high scores.
You can read about the company in TD Ameritrade Review.
About TD Ameritrade: TD Ameritrade, Division of TD Ameritrade, Inc., is a member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade
IP Company, Inc. and The Toronto-Dominion Bank. TD Waterhouse Canada Inc. is a subsidiary of The Toronto-Dominion Bank.
TD Waterhouse Canada Inc. and TD Ameritrade, Inc. are affiliated through their respective parent firms. The firm is not in bankcruptcy.
TD Ameritrade is a member
of FINRA/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.
Read full TD Ameritrade Review.
This article was updated on 01/31/2013.
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