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TD Ameritrade Hidden Fees (2020)


TD Ameritrade hidden fees explained. Does Thinkorswim/TD Ameritrade charge additional fees on taxable brokerage or IRA account? TD Ameritrade monthly fee.



TD Ameritrade Hidden Fees


If you’re concerned about hidden fees that TD Ameritrade charges, keep reading because you’re going to dig deep into its pricing schedule, analyze and explain everything.


What TD Ameritrade Doesn’t Charge For


It’s probably best to start with an analysis of what the brokerage firm doesn’t charge for. There are several areas where TD Ameritrade manages to offer free services. For example, its flagship trading platform thinkorswim is amazingly free to use. There aren’t any frequent trader mandates or account minimums. What this means is that small-time traders can use this professional-level software. It also has a simulated mode, and if you’re not a customer yet, you can try it out with zero obligations.

At TD Ameritrade, all stocks and ETFs are now free to buy or sell.

The broker offers other trading tools that are free to use. Of course its website carries no charge, and it’s very advanced. There are three TDA mobile apps, all of which have their own unique features. There is no charge for any of them, and the broker’s smartwatch app is also free.

On the broker’s trading platforms, Level II quotes are always free of charge.

TD Ameritrade charges no low-balance, annual, inactivity, or maintenance fees for its brokerage accounts. There is also no charge to close one, and this policy includes retirement accounts.

Checks and a Visa debit card can be appended to a trading account free of charge. Check reorders are also free, and if you incur any ATM fees in the United States, TDA will reimburse you.


Services That TD Ameritrade Does Charge For


Transferring an account costs $75 if you move all your assets. If you do a partial transfer, TD Ameritrade doesn’t charge anything. Presumably, you could transfer everything except one security, and you would avoid the $75 ding.

Paper statements and trade confirms cost $2 each for accounts below $10,000. If you have more than ten grand, there is no charge.

Mandatory reorganizations, including stock splits, cost $38, a somewhat nauseating charge given that you have no control over the event.

If you write a check with your free cash management tools and need a copy of it, TDA charges $15.

Selling a mutual fund without a transaction fee less than 6 months after purchase carries a $49.99 charge.

Some research subscriptions at TD Ameritrade come with monthly fees. MarketEdge Daily costs $9.99, while the Plus version costs an extra $10.

Although Level II quotes are free at TD Ameritrade, Level I quotes cost $24 for professional traders. Other market data also carry steep monthly fees for pros. For example, streaming news is $99 per month, while NYSE data is $45.

If you place a trade over the phone with a live rep, instead of paying $0, you will be charged $25.


TD Ameritrade Fees vs Competitors




TD Ameritrade Monthly Fee


TD Ameritrade does not charge monthly fee on all of its accounts, including all taxable (individual or joint brokerage accounts), all non-taxable, individual retirement accounts: ROTH IRA, traditional IRA, SEP and Simple IRA. TD Ameritrade's Thinkorswim division also does not charge monthly fees. The only exception is monthly subscription fees on certain market data (streaming news, real-time AMEX quotes, etc.) - but these only apply to professional traders.


TD Ameritrade Commissions


InvestmentsCommissions
Stocks and ETFs $0
Stocks and ETFs broker assisted $25
Options $0.65 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



All TD Ameritrade Fees


For the list of all TD Ameritrade's fees, go to this link.


TD Ameritrade Service Fees


Certificate  
Certificate Withdrawal $500
Checking  
Checkbook Reorder FREE/100, IRA - Free/20
Copy of Check $15
Debit Card  
ATM fees Unlimited Rebates - Nationwide
Annual fee $0
Miscellaneous  
Overnight Delivery Billed at cost
Stop Payment $25
Reorganization  
Mandatory $38
Voluntary Tender Offer $38
Statements and Trade Confirmations  
Electronic Statements No Charge
Paper monthly statements by U.S. mail FREE: accounts with liquidation value >= $10k
$2: accounts with liquidation value < $10k
Paper quarterly statements by U.S. mail FREE: accounts with liquidation value >= $10k
$2: accounts with liquidation value < $10k
Paper trade confirmations by U.S. mail FREE: accounts with liquidation value >= $10k
$2: accounts with liquidation value < $10k
Replacement Paper Statements by U.S. Mail $5
Replacement Paper Trade Confirmations by U.S. Mail $5
Transfers  
Outbound Full Account Transfer $75
Outbound Partial Account Transfer Free
Wires (Outgoing) Domestic/International $25



TD Ameritrade Exception Fees


NSA custody fee $250 per position charged annually
NSA transaction fee $100 per transaction
Forced Margin Sellout $25 + broker commission
Foreign Security $15 + broker commission and all applicable local market charges
Mutual Fund Short-Term Redemption $49.99
Commission-free ETF short-term trading fee $13.99
Regulation T Extension $25
Restricted Security Processing for non-affiliates $50
Restricted Security Processing for Company Affiliates and Restricted Shares Requiring Special Handling $250
Returned Check/Electronic Funding $25
Removal of Non Marketable Security FREE
French Financial Transaction Tax (FTT) Ordinary & ADR - all opening transactions in designated French companies will be subject to the French FTT 0.30% of the total transaction cost
Italian Financial Transaction Tax (FTT) Ordinary & ADR - all opening transactions in designated Italian companies will be subject to the Italian FTT 0.10% of the total transaction cost of in scope equities and other financial instruments, and a flat amount which ranges from EUR0 .025 to EUR 200 depending on the relevant instruments and on its notional value for derivatives, traded on a regulated market or multilateral trading facility in a EU Member State.
American Depositary Receipt (ADR) Fee ADR fees charged by custodian banks normally average from one to three cents per share. Fee amounts and timing differ by ADR







Thinkorswim


Traders who want something more advanced than web-based Trade Architect should check out thinkorswim, which is a desktop program. This is TD Ameritrade's most advanced platform. As such, it takes longer to learn and master. There are many useful features. To start, there is a 'support/chat' button that takes users to customer service or a trader chat room. Customer service representatives are available from 6 am to 6 pm CST. The chat rooms are a place for TDA customers to discuss investing ideas.

A useful feature that thinkorswim has is paperMoney. This is a paper trading system within thinkorswim where users can practice trading without losing a dime of real money. Traders who want to learn how to buy and sell stocks, options, futures, and forex can get their feet wet with a virtual currency first.


Hidden Fees at TD Ameritrade


Charting tools in thinkorswim are very advanced. Orders can be placed from a chart with a right-click of the mouse. There are many technical, drawing, and pattern tools. Regression lines, spectrum bars, and Fibonacci retracements are a few examples. A chart's time and price axes are customizable. A chart can be detached to create its own window, which makes the chart fill the screen.

Advanced order types are available in both paperMoney and regular trading. These include market on close, trailing stop, one cancels the other (OCO), and stop limit orders. Option strategies, such as diagonals, strangles, and butterflies, can also be used.

TD Ameritrade has created a link between thinkorswim and social media. Users can share a chart via e-mail, Facebook, Twitter, and MyTrade.

Compared to Schwab's advanced platform, StreetSmartEdge, it takes longer to log into thinkorswim. StreetSmartEdge is more user friendly, whereas thinkorswim has a more professional feel to it.



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Mobile Trading


For investors who want to trade on a mobile platform, TD Ameritrade offers three apps. There is a regular app, the Mobile Trader app, and a thinkorswim app. They can be used on iPhone, iPad, and Android. The broker has also rolled out an app for Apple Watch. The standard app can be used on Windows 10. Available features include funds transfer, mobile check deposit, order placement, and a customer service contact. Unfortunately, none of the apps can trade mutual funds, a feature that Fidelity and Schwab do offer.


TD Ameritrade Hidden Fees


The thinkorswim app has excellent trading capabilities. Charting, for example, is very advanced for a mobile platform. Numerous technical studies are available, such as Bollinger Bands and RSI. The broker's paper trading system is also available on the thinkorswim mobile app. Options can be traded using advanced option strategies.

The standard app has less sophisticated charting, but better research. Analyst reports for individual securities are available in pdf format, along with news reports related to the stock.



Summary


TD Ameritrade has very sophisticated trading tools. Even better, none of the broker's platforms have any frequent trader requirements. With no account fees, no minimum opening deposit requirement, and no hidden fees TD Ameritrade is definitely one of the Best Brokerage Firms in 2020.



Disclaimer


TD Ameritrade hidden fees listed here are as of 2020 and are subject to change. For the most recent information on TD Ameritrade hidden charges visit their website.