TD Ameritrade IPO

Can You Buy IPO on TD Ameritrade in 2022?


Does TD Ameritrade offer IPO stocks access on its brokerage account? TD Ameritrade IPO flipping, minimum account requirements, and how to buy initial public offerings.



IPO Access at TD Ameritrade


TD Ameritrade is a well-known broker for its best-in-class charting platform: TOS (Thinkorswim), the extensive education suite, free market data, and much more. When it comes to investing, there is very little that TD Ameritrade does not do, and the broker does well to cater to investors at just about every level of experience and account size.

IPO trading at TD Ameritrade, however, is not geared towards the broker’s ‘average’ users. Highly active traders and well-capitalized retail traders can take advantage of TD Ameritrade’s IPO program, as can larger institutions and other such groups.

Here are some details about IPO trading at TD Ameritrade, as well as an alternative that offers IPO access to everyone, regardless of account size, trading experience, affiliation, etc. Read on to learn more.


IPOs at TD Ameritrade


TD Ameritrade offers IPOs on a somewhat regular basis. IPOs at the popular broker are available when TD Ameritrade acts as ‘a member of the seller group’ involved with distributing the early-release shares.

There are two main requirements that traders should meet if they wish to take advantage of the IPO program, when IPOs are available. An account minimum of at least $250,000 is one of the requirements, and the other is based on trade volume of at least 30 trades in the three months prior to an IPO offering.

Investors with less than a quarter million dollars in their trading account, should initiate at least 3 trades per week on a consistent basis in order to maintain eligibility for IPO access at TD Ameritrade.


Create Conditional Offer to Buy


If an investor’s account meets the requirements, the process to create a conditional offer to buy (COB) for an IPO is an easy process. If the account is ineligible, there will be a tag on the account IPO page to indicate that.

For eligible accounts, a list of available IPOs is provided. Interested traders can choose an IPO and take part by selecting the number of shares and the bid price on the tool provided.


Open TD Ameritrade Account



Open TD Ameritrade Account


Alternative Products for Ineligible Investors


For many TD Ameritrade customers who like the idea of IPOs but do not have access to them, there are a couple of good hacks available on the broker that can help fill the void.

Fixed-income new issues are one alternative. They operate in a similar way to IPOs but do not come with the same set of rules that IPOs are known for. Available from the Trade tab, there are many categories of fixed-income new issues to choose from.

Another option is the direct public offering (DPO) route. Direct listings skip the initial IPO process and list on the exchange directly. Prices are set by supply and demand and can be more volatile as a result, but many popular companies choose to go the DPO direction.

Finally, investing in the IPOs once they go public is another popular choice. When taking part in IPOs on the day they go public, trading them is the same as with any other stock.

These options only work for some, though. For traders looking for an alternative to TD Ameritrade that provides a higher number of available IPOs, lower account requirements, and an overall simpler experience with the IPO process, Webull is one of our favorites.


Webull as an Alternative for IPO Investing


There are many reasons to choose Webull for IPOs as an alternative to TD Ameritrade. One of the most important is that traders can take part with as little as $100 in their account, and there are no trade volume requirements. Webull encourages its traders to take advantage of IPOs which is why they provide easy access for every investor on the platform.

Another reason that investors might want to choose Webull is the trading platform itself. TD Ameritrade, as previously mentioned, is one of the best in the business when it comes to charting and market data, but Webull is certainly no slouch in either of those departments.


WeBull IPO Stocks


In fact, Webull might just have one of the best mobile trading platforms available, offering tools for both fundamental and technical traders.


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Open WeBull Account


Trading IPOs on Webull


To get started trading IPOs on Webull, all that is required is a mobile device, the Webull app, and a live trading account.

If you do not have a Webull brokerage account, setting one up is easy and you can do that here (insert affiliate link).


WeBull Buy IPO


The following steps will guide you through the process:

- Open the MARKETS tab on the mobile app.
- Scroll down to the IPO CENTER.
- Select the AVAILABLE tab.
- Choose an IPO and select the ORDER NOW button.
- Select the number of shares you would like to purchase.
- Enter in a price that you are happy with.
- Attest that you are not restricted from trading IPOs.
- Finally, select PLACE ORDER.


Review of Webull


  Read detailed review of Webull


Reminders About IPO Trading


Both Webull and TD Ameritrade discourage IPO Flipping – the selling of IPO shares within the first 30 days of trading. Flipping on both platforms can result in future IPO access restrictions.

Another consideration is that IPOs can carry more risk than buying stocks that have been listed for a longer period. A lot of the attraction to IPO is the volatility they provide, but volatility works both ways. A bit more cautiousness than usual is often a good idea.


Open Webull Account


6 FREE stocks valued $34-$12,600 give-away at Webull.

Open WeBull Account


About the Author
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.