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Is TD Ameritrade a Scam?
Most people have probably heard the name TD Ameritrade. It was one of the most
well-known brokers in the U.S. In this article, we look at whether TD Ameritrade was a safe and
legitimate company and give a short review.
TD Ameritrade Company Overview
TD Ameritrade was in business for more than 40 years and was one of the largest brokers in the U.S.
TD Ameritrade was also publicly traded for many years.
According to its website, TD Ameritrade had over
11 million client accounts and more than $1 trillion in assets under administration. It provided custodial services for over 6,000 investment advisors. On average, its clients placed more than 500,000 trades per day. According to Charles Schwab’s 10-K annual report from last year, TD Ameritrade produced more than $7 billion in revenue in 2021.
Is TD Ameritrade Legitimate?
Because it operated in the financial industry as a broker-dealer, TD Ameritrade was heavily regulated. There is a long list of regulators that oversaw its business. Key regulators included the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), the U.S. Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), the Internal Revenue Service (IRS) and state securities regulators.
With this many agencies watching the firm and with TD Ameritrade’s long history, it would be extremely difficult for the company to run an illegitimate operation or be a scam. Along with its regulators, TD Ameritrade was also voluntarily listed with the Better Business Bureau.
TD Ameritrade Reviews & Complaints
Any company that has operated for more than 40 years and reached the size of TD Ameritrade will
have some negative reviews and complaints. The good news is there are a few
public resources that anyone can use to look through customer reviews and
complaints.
TD Ameritrade has had a profile with the Better Business Bureau (BBB) since 1980 and
has an
A rating. It has 427 complaints that were closed in the past three years
(a very small number compared with 11 million customers), and
the details of the complaints are available to the public. It has a 1.14 out of
5-star customer review score, but that comes from a very small sample of only 36
reviews. And let’s be honest, most people who take time to post a review are
usually the upset ones.
Like all brokers, TD Ameritrade had a public profile with FINRA. Its CRD# with FINRA was 7870,
and anyone could use this number to view its profile. It had a total of 201 disclosures on
its FINRA profile.
TD Ameritrade Awards & Accolades
TD Ameritrade built up a long list of well-known awards in the brokerage business.
Most recently in 2026, TD Ameritrade received awards from Investopedia as
best broker for customer
service, best broker for beginners, and best mobile app. TD Ameritrade was also named by a
major financial magazine as number one in 2026 in six categories, including Platforms & Tools,
Desktop Platform, Active Trading, Options Trading, Customer Service, and Phone Support. On top of that,
TD Ameritrade won the 2026 Best Online Broker for Stock Trading
Platform and Research award.
TD Ameritrade did not just win awards in 2026. It collected major awards for many years before that as well. It would be hard for a non-legitimate or scam company to win top awards year after year. TD Ameritrade’s thinkorswim platform has been named the top Desktop Platform for 10 straight years.
Is TD Ameritrade a Safe Place to Keep Your Money & Investments?
If you have money at TD Ameritrade or are thinking about moving money there, it helps to know the broker offered multiple layers of protection. TD Ameritrade provided Securities Investor Protection Corporation Insurance (SIPC insurance), Federal Deposit Insurance Corporation Insurance (FDIC insurance), Supplemental Insurance, and an Asset Protection Guarantee.
All customers were automatically eligible for TD Ameritrade’s Asset Protection Guarantee. This
guarantee covered lost cash or securities due to unauthorized activity in an account. As long
as the unauthorized activity happened through no fault of your own, TD Ameritrade would reimburse you
for the loss. This program was not offered by many brokers, and it supported the idea that TD Ameritrade tried to protect its clients.
Investment accounts are never protected from normal market losses. But with SIPC and FDIC coverage,
funds were protected if TD Ameritrade ever went bankrupt or shut down. SIPC
insurance protected cash and securities in a brokerage account up to $500,000, including up to $250,000 in cash. For FDIC insurance, TD Ameritrade offered a special cash program that swept cash into multiple FDIC-insured banks so customers could receive much more total coverage than the standard $250,000 limit.
If SIPC and FDIC limits were not enough, TD Ameritrade also provided
supplemental insurance through London insurers. This extra coverage applied to cash and securities above the $500,000 SIPC limit up to set limits per customer and for the firm overall.
Is TD Ameritrade a Scam or Legitimate? The Conclusion.
Based on the information covered in this article, the conclusion is that TD Ameritrade
was not a scam and operated as a legitimate brokerage firm. If
TD Ameritrade had been a scam or not legitimate, it likely would have been quickly shut down
by one of the many regulators monitoring the company.
TD Ameritrade Complaints
While thinkorswim, the broker’s advanced desktop platform,
is praised for many strengths, some customers have complained that it can be more glitchy than
other platforms. In one test, thinkorswim took one minute and 28 seconds to load on Windows 10, while
Schwab's platform loaded in 43 seconds.
Traders have also said TD Ameritrade’s three separate mobile apps can feel awkward compared to having just one. The thinkorswim app focuses on charting and trading. Mobile Trader is very similar. A basic app handles transfers, statements, and mobile check deposit. It would be easier if the three apps were combined into one. Also, thinkorswim and Mobile Trader offer CNBC streaming, but only in standard definition. The Fidelity app, by comparison, streams Bloomberg in HD.
Even with TD Ameritrade’s strong tech reputation, it did not offer an Apple TV app. Fidelity
customers do have access to this feature.
TD Ameritrade securities accounts could be set up with checking features. However, the broker did not
offer savings accounts, and it did not provide mortgage loans. Merrill Edge customers can access both.
Website charting at TD Ameritrade included only 33 technical studies. By comparison, Ally Invest's web-based charting offers roughly 90. Trendlines are available, but common Fibonacci retracements are not.
TD Ameritrade did offer margin accounts, but its interest rates were often on the higher side. Currently, a margin
debit of $10,000 or less costs 11.75%.
Robinhood charges just
5%.
Broker-assisted trades were available at TD Ameritrade, but the fee was very high —
$25.
Trading a non-NTF mutual fund at TD Ameritrade cost $49.99 on both the buy and sell sides. By contrast,
WellsTrade customers pay $35 for non-NTF Firstrade charges $0.
One last TD Ameritrade complaint: while the broker did offer phone support, it did not have an online chat
service. This stands out because many other firms, including Ally Invest and Firstrade, do offer
online customer service.
TD Ameritrade Bullish Signs
Even though some clients had complaints, TD Ameritrade still offered many strong benefits. For
example:
$0 commission stock and ETF trades. It doesn’t get better than that!
Phone customer service was available 24/7. Vanguard does not offer 24/7 service. TD Ameritrade clients
could also visit one of the company’s local branches. At one point, there were more than 380+ locations across the United States.
TD Ameritrade offered some of the best technology among online brokers. It had one of the
highest-rated platforms in the industry - thinkorswim. It included advanced charts and around 400
technical studies. thinkorswim, on both desktop and mobile, offered paper trading. Many other
brokers, including Fidelity and Schwab, do not offer this feature.
There was no minimum deposit to open an account. This allowed traders to try the broker with no money down. Even better, there were no maintenance or closeout fees.
More than 13,000 mutual funds were available to investors. By comparison,
E*Trade, Schwab, and Merrill Edge offer fewer.
4,200 mutual funds at TD Ameritrade could be traded without a commission. This is more than at most
other brokers.
Futures and forex were both available at TD Ameritrade. Many other brokers do not offer these products.
TD Ameritrade Complaints Summary
Investors at TD Ameritrade mostly complained about mutual fund commissions. But in return, they received a lot of
useful services that other brokers either do not provide or charge extra for. TD Ameritrade is an Audi of
investing world and the higher mutual fund fees reflect the service level.
Updated on 1/20/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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