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TD Ameritrade Forex Trading


2021 TD Ameritrade Forex trading: currency trading margin, minimum deposit. TD Ameritrade currency pairs, fees, mini, and micro lots.



TD Ameritrade Forex Trading Overview


Investors oftentimes turn to TD Ameritrade for stocks and funds, but the broker also has a good platform for buying and selling forex. In fact, the firm is one of the few securities brokers to offer forex trading. Let's take a look at what TD Ameritrade delivers for currency traders.


Forex Research


The TD Ameritrade website has research tools for all products available through the firm, and this certainly includes forex. The broker offers a useful self-guided course on currency trading from Investools, an educational company owned by TD Ameritrade. This course can be expanded full-screen, and is free for all traders. There's also a useful assessment quiz that determines what level currency traders are at. A good selection of videos covers several important topics in currency trading, such as the use of margin, how to place trades, intermarket analysis, and interest rates.


TD Ameritrade Forex Trading


TD Ameritrade Forex Commission Schedule


Forex trading at TD Ameritrade is priced in one of two schedules, either commission or non-commission. The non-commission schedule is simpler. The broker is compensated from the bid-ask spread that is displayed on the platform. This bid-ask spread is wider than commissionable trades. With this schedule, in addition to a bid-ask spread, there is also a commission. It is based on the counter currency rather than the base currency (the base currency is the first currency in the pair, while the second currency is the counter currency). It is $0.10 per 1,000 units, with a $1 minimum. For example, the commission from a 1,000-lot EUR/USD trade would be USD $1 ($1 minimum and/or $0.10 per 1,000 units).

The broker does not impose carrying or overnight fees. Moreover, there aren't any platform or subscription fees to trade forex.


TD Ameritrade Forex Margin/Leverage


One more reason we like TD Ameritrade is because their leverage requirements are lower than other popular FOREX platforms. They use a 50:1 and 20:1 leverage model depending on whether the pair you’re trading is a major pair or an exotic pair. Here are two examples of what this would mean.

BuyingRequires
10,000 units USD/NZD (major pair) 50:1 leverage = $200 margin requirement
10,000 units USD/MXN (exotic pair) 20:1 leverage = $500 margin requirement


TD Ameritrade Margin Calls


TD Ameritrade will automatically liquidate your position if your margin meets one of the following criteria:

1. On any account with a risk level of less than 100% at 5 am EST.
2. Intraday if the risk level in the account falls to 25% or below, whichever comes first.


Open TD Ameritrade Account



Open TD Ameritrade Account



Desktop Trading


Currency trading at TD Ameritrade takes place on the broker's advanced desktop platform thinkorswim. The website does not have the ability to place trades for forex or futures. One great feature of thinkorswim is paper trading. Investors who don't have any experience trading forex can practice trading with a virtual currency without any risk of losing real money.

Thinkorswim has a section called Forex Trader. As the name implies, this is where forex is bought and sold. In the upper-left of the screen, balances are displayed, one of which is forex buying power. Below the balance section is news. News related to a currency can be found by typing in a currency pair, such as USD/JPY. Quotes and watchlists are displayed next. Currency pairs can be entered for real-time prices and bid-ask spreads.


TD Ameritrade forex trading


On the right-hand side of the platform is the section devoted to currency pairs and their bid-ask spreads. These appear with a red sell button and a green buy button. A currency pair can be changed simply by typing in a new pair, such as AUD/USD or GBP/JPY. The quantity of the base currency to be purchased or sold can be changed. A # after the currency pair means the trade will be charged according to the commission schedule, whereas a currency pair without the # signifies the non-commission schedule. It's easy to switch between the two.

Charting for a currency pair is very advanced. Drawing tools and many technical studies are available. The graph is fully customizable, and trades can be placed directly from the chart with a click of the mouse.


TD Ameritrade forex


Mobile Trading


In addition to trading on a desktop platform, TD Ameritrade has made sure its customers can trade on-the-go as well. The broker has a total of three mobile apps, two of which can be used to trade forex. All apps are free to use. Charting is available and includes many technical studies.

The order ticket is user-friendly. Users can choose between market, limit, stop, and trailing stop order types when submitting a purchase or sale. Advanced orders with triggers are also available on the app. Despite the level of sophistication of the mobile platform, it's easier to use than the more advanced desktop system.





Customer Service


TD Ameritrade offers general customer service 24 hours a day, 7 days a week. The broker has forex specialists who can be contacted by phone or e-mail, a big plus for currency traders who need some specialized assistance. The forex desk is open 24 hours a day from Sunday at 4 pm until Friday at 5 pm, CST.


Comparison


Thinkorswim is difficult to learn. It has many order types and charting features that must be understood before embarking on a currency trading profession, or even hobby. Navigation on the platform is sometimes cumbersome. Novice investors might be better served with a simpler platform, such as Ally Invest's forex trading software.


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TD Ameritrade Forex Trading Summary


With TD Ameritrade, forex traders don't need a forex-only broker. The firm's clients get 24/5 customer service, currency education, and high-quality trading platforms, all with competitive spreads.


Open TD Ameritrade Account



Open TD Ameritrade Account