TD Ameritrade Review: Fees and Minimum Deposit
|Stocks and ETFs|| $9.99|
|Stocks and ETFs broker assisted|| $49.99|
|Options|| $9.99 + $0.75 per contract|
|No-load mutual funds|| $49.99|
|Treasuries at auction|| $25|
|All other bonds and CMOs, CDs|| on a net yield basis|
|Futures|| $2.25 per contract plus exchange & regulatory fees|
|Forex|| Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges.|
|Investments|| stocks, mutual funds, options, ETFs, bonds, CDs, UITs, futures, and forex|
|TD Ameritrade minimum deposit to open account|| $0 for cash account, $2,000 for margin account|
|Fees||TD Ameritrade fees|
|Promotion and login links||TD Ameritrade login, TD Ameritrade promotions
and TD Ameritrade referral
With TD Ameritrade customers get flat rate $9.99 commission on every internet equity trade, regardless of their account
balance or how many shares they buy or sell.
We start TD Ameritrade review with a new client application process. The account registration is well-designed and very fast: it typically takes
10-12 minutes to complete an application. Simply click on the broker promotion link -
Trade free for 60 days + get up to $600.
press "Open New Account" button, and follow the instructions. When it's done, users are free to immediately login and explore
the website. New customers can link to their bank account and fund their brokerage account right away - micro-deposits verification is not required.
TD Ameritrade Mutual Funds Review
There are over 11,800 mutual funds for investors to buy and sell at TD Ameritrade. The broker has more than 3,600 funds that have no transaction fee.
Almost 2,000 of these also have no load. The broker's website has a very useful screener than scans through all of these funds based on criteria the
user selects. These can include Morningstar rating, gross expense ratio, manager tenure, NAV return, and much more. Beyond the screener, TD Ameritrade
also offers a wide selection of educational videos on mutual funds. Subjects include how to choose a fund, how to compare one to a model portfolio,
and how to use the broker's Premier List of funds.
The minimum investment amount at TD Ameritrade for mutual funds ranges from zero to $5 million. It depends on the specific fund. The required minimum
for a fund in an IRA also varies based on the particular product. TD Ameritrade does not impose any fees for small balances in a fund. Transaction-fee
funds will set investors back $49.99. Regrettably, this charge is applied to both the sell and buy sides. If a no-transaction-fee fund is held for less
than 6 months, a short-term fee of $49.99 is charged.
TD Ameritrade charges no special fees for Individual Retirement Accounts. There are no setup fees, inactivity fees, or annual fees. An IRA can be
opened with any amount. There are several IRA types to choose from: Traditional, Roth, SIMPLE, SEP, Rollover, and Minor (in both Roth and Traditional
The TD Ameritrade website has excellent IRA tools and resources. There are good videos on retirement topics, such as income during retirement, making
withdrawals from a retirement account, and retirement for beginners. Articles discuss choosing a retirement account for a small business, figuring the
minimum amount needed for retirement, and making withdrawals after age 70½. The broker also a selection of tools and calculators. A very useful one
is an IRA selection wizard. Another is a retirement planner, which determines the amount investors need to save each year to adequately prepare for
TD Ameritrade Review: Website/Trading Platform/Tools
TD Ameritrade's website is more advanced than the websites of all other brokers. It is incredibly well-designed, has intuitive menus, and users can easily
find all the resources they need. There are many valuable functions. Users can reach out to customer service, research securities, plan for
education costs, and much more.
SnapTicket is a convenient trading ticket that appears at the bottom of the browser. Placing trades for stocks, ETF's, and options is fast and simple with SnapTicket. The tool displays vital information, such as volume and most recent trade price.
The website also has excellent tools for research and education. Among others, investors can find information on bond trading or retirement planning.
The broker has very useful information on IPO's and trading ideas.
TD Ameritrade offers Trade Architect, a Java-based trading platform. Its users can watch live streaming of CNBC at no cost. The video can also be detached so that it can be displayed full-screen. The
platform is easily customizable. Three background colors are available: blue, white, or black. The data displayed in the account summary can be changed. Categories such as long stock value,
mutual fund balance, option buying power, or unsettled cash can be displayed or hidden.
The default tabs on the platform are Account, Trade, Watchlist, Ideas, and Chart. Under these tabs information can be found that corresponds to the tab's name.
For example, the Ideas tab has an events calendar along with a stock and option screener. Read detailed Trade Architect review.
Thinkorswim is TD Ameritrade's crown jewel of trading platforms that has many useful features. For example, the platform has a practice trading system
called paperMoney where users can practice trading with a virtual currency. Along with stocks, ETFs, mutual funds, and options, investors could also
trade on futures and forex markets which very few other brokers offer.
Charting tools on the platform are second to none. There are several drawing, technical, and pattern tools. Regression lines, evening star, and Fibonacci arcs are a few examples. A chart is
detachable, which allows it to fill the monitor.
Thinkorswim has a very professional feel to it, compared to Schwab's StreetSmart Edge, which is simpler and has fewer features. Read detailed Thinkorswim review.
TD Ameritrade customers can trade with phones, tablets, and now even watches. The broker offers three apps for phones and tablets. There is a standard
app, a Mobile Trader app, and a Thinkorswim app. They can be used on iPhone, iPad, and Android devices. The broker also has an app for Apple Watch.
The regular app is also compatible with Windows 10. Available features include order placement, funds transfer, and mobile check deposit. The apps have
a high, 4-stars rating at Google Play and iTunes stores.
The Thinkorswim mobile app has outstanding trading tools. The charting tools are the best in the industry on a mobile platform. A paper trading system
is also available on the app. Read detailed TD Ameritrade app review.
TD Ameritrade Review: Pros
- Very few fees and no surcharges on penny stocks, large orders, or after-hours trading
- Large and well-known company with 126 local branches
- Two excellent trading platforms available to all clients: Thinkorswim and Trade Architect
- Users can practice trading without risking real money using PaperMoney virtual trading
- Easy access to myTRADE online trader community
- No account maintenance or inactivity fees
- Free streaming quotes, including Level II
- Best selection of independent, third-party research from 13 firms (Standard & Poor's, Morningstar, Jaywalk, TheStreet, etc.)
- 100+ ETFs with no commissions
- Large number of mutual funds - around 12,000 available; 3,000 NTF (no-transaction fee) funds
- Free DRIP (dividend reinvestment plan)
- No-fee IRA accounts
TD Ameritrade Review: Cons
- At $9.99 for stocks and ETFs and $49 for mutual funds, commission rates are high
- High margin rates
TD Ameritrade is a perfect choice for securities investors who are also interested in forex and futures trading. TDA is one of the few
brokers that offers futures and forex along with the normal line of securities. Commissions are reasonable, and even better, futures
and forex can be traded on the broker's advanced platform, thinkorswim, along with stocks, ETF's, and options.
Easy-to-use website as well as trading tools for clients with every experience level make a broker a perfect choice for beginner investors.
Absolutely no-fee IRAs earn the company a recommendation for individual retirement account from many financial publications.
TD Ameritrade Review Summary
TD Ameritrade is one of the best-known and largest online brokers in the country, and it has been in business for
over 35 years. But it's definitely not the cheapest: $9.99 per stock trade
was a good price in 2000, but it is considered high in 2016, and $49 to buy or sell a mutual fund is also expensive.
For the high commissions investors get a lot of perks not found in cheaper companies. The main advantage is that there are no fees
to worry about. Unlike most other brokerage firms, TD Ameritrade does not have surcharges on large orders, penny stocks, or extended-hours
trading. There are no maintenance or inactivity charges for all accounts.
The firm's IRA accounts don't have setup, closure or annual fees. This is good news for retirement account holders, and it makes
the firm a good option for an IRA.
From its Trade Architect platform the company offers access to third-party affiliate myTRADE investor community, which allows
members to follow what other users are doing, share trades and ideas, and learn various investment strategies.
TD Ameritrade provides its customers access to educational webcasts and podcasts about investing. Because these are web broadcasts, users can listen to
them while, for example, on the road to work or home. Clients also get access to probably the best virtual trading account (called PaperMoney) that
allows both beginners and experienced traders to practice various trading strategies without any risk. The broker is rated #1 for research and offers
the richest selection of investment product reports from 13 different firms, including Morningstar, Thomson Reuters, and S&P Capital IQ.
The company bought one of the best online brokers - Thinkorswim - and it has benefited greatly from this acquisition. Because of Thinkorswim's
excellent trading technology, TD Ameritrade now offers arguably the best trading platform in the industry. And, unlike almost all competitors,
the platform is free of charge, and has no trading volume or account balance requirements to access it.
In summary, we would open account at the broker for their great research amenities and trading tools as well as for their new customer promotion
offer that allows clients to essentially create a portfolio without spending any money. Thousands of no-transaction fee (NTF) mutual funds, and over
100 commission free ETFs (must be held over 30 days to be commission free) allow investors to continue building their nest egg for years without
paying any brokerage fees.
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