TD Ameritrade is one of the largest online brokerage firms in the United States, offering a wide range of investment products and services for both beginner and experienced investors. In this review, we will take a closer look at TD Ameritrade’s features, pricing, pros, and cons to help you decide if it’s the right platform for you.
TD Ameritrade Features
- Platforms: TD Ameritrade offers a variety of trading platforms, including its web-based platform, as well as the thinkorswim and Mobile Trader apps. The web-based platform is suitable for beginners and experienced traders alike, while the Thinkorswim app provides advanced charting tools, streaming news, and more for active traders.
- Accounts/Trading: TD Ameritrade provides access to a variety of account types, including individual, joint, and custodial accounts. The broker also offers access to stocks, ETFs, mutual funds, options, futures, and more.
- Research & Education: TD Ameritrade’s research tools are comprehensive and include real-time streaming quotes, research reports from independent providers such as Morningstar, and a proprietary stock screener. The broker also offers a variety of educational resources, including webcasts and seminars.
- Pricing/Fees: TD Ameritrade’s fees are competitive but not the lowest in the industry. Stocks, ETFs, and options trades cost $6.95 per trade, while futures trades are $2.25 per contract with a minimum charge of $1.00. Mutual funds have a flat fee of $49.99 per transaction.
Investing Strategies Suitable for TD Ameritrade
TD Ameritrade offers a variety of investment products and tools that cater to different investing strategies. Here are some strategies that may be suitable for TD Ameritrade:
- Long-Term Investing: TD Ameritrade is a great platform for long-term investors who are looking to buy and hold investments such as stocks, mutual funds, and ETFs. The platform offers a wide range of investment products, including no-transaction-fee mutual funds and commission-free ETFs, making it easy and cost-effective to build a diversified portfolio.
- Active Trading: TD Ameritrade’s thinkorswim platform is designed for active traders who want advanced trading tools and features. It includes tools for technical analysis, options trading, and customizable charting, which can help traders make informed decisions.
- Retirement Planning: TD Ameritrade offers a variety of retirement planning tools, including a retirement calculator, IRA accounts, and annuities. These tools can help investors plan and manage their retirement savings.
- Education and Research: TD Ameritrade provides educational resources and research tools that can help investors make informed decisions. The platform offers webinars, online courses, and a library of educational content that covers a wide range of topics, from basic investing principles to advanced trading strategies.
Overall, TD Ameritrade is a versatile platform that can accommodate different investing strategies and goals. Whether you’re a long-term investor, an active trader, or a retiree, there are tools and resources available on TD Ameritrade that can help you achieve your investment objectives.
Fees and Commissions Breakdown
TD Ameritrade offers a variety of investment products and services, and their fees and commissions vary depending on the type of product or service. Here is a breakdown of TD Ameritrade’s fees and commissions:
- Commission fees for online equity trades: TD Ameritrade charges $0 commission for online equity trades.
- Commission fees for options trades: TD Ameritrade charges $0.65 per contract for options trades, plus a $0.75 fee per options trade order.
- Mutual fund fees: TD Ameritrade offers a wide range of no-transaction-fee mutual funds, which means there are no transaction fees to buy or sell these funds. However, some mutual funds may charge management fees and expense ratios.
- ETF fees: TD Ameritrade offers several commission-free ETFs, but there are no ETFs that trade commission-free on the platform. The commission fee for ETF trades is $0.
- Account minimum: TD Ameritrade does not have a minimum account balance requirement.
- Fees for additional services: TD Ameritrade charges fees for some additional services, such as broker-assisted trades ($25), wire transfers ($25 outgoing, $0 incoming), and paper statements ($2 per statement).
It’s important to note that these fees and commissions are subject to change, and investors should review TD Ameritrade’s fee schedule before opening an account or making a trade. Overall, TD Ameritrade’s fees and commissions are competitive within the industry, and the platform offers a variety of commission-free investment products and services that can help investors save money.
Trading Platforms Available Through TD Ameritrade
TD Ameritrade offers several trading platforms for investors with different levels of experience and investment goals. Here are the trading platforms available through TD Ameritrade:
- Web Platform: TD Ameritrade’s web platform is designed for all levels of investors, from beginners to advanced traders. It offers customizable charts, real-time quotes, and a comprehensive suite of research and analytical tools.
- Mobile App: TD Ameritrade’s mobile app is available for iOS and Android devices, allowing investors to manage their accounts and investments on the go. It offers features such as mobile check deposits, real-time quotes, and the ability to trade stocks, ETFs, and options.
- thinkorswim: thinkorswim is an advanced trading platform designed for active traders and sophisticated investors. It offers advanced charting and technical analysis tools, options trading capabilities, and access to a wide range of third-party research and news sources.
- Trade Architect: Trade Architect is a web-based trading platform that offers a simpler interface than Thinkorswim but still provides powerful trading tools. It offers customizable charting, trading strategy templates, and access to real-time market data.
- Command Center 2.0: Command Center 2.0 is a customizable desktop trading platform that offers a variety of features for advanced traders. It includes advanced order types, real-time streaming data, and customizable charting tools.
Overall, TD Ameritrade offers a variety of trading platforms that cater to investors with different levels of experience and investment goals. From the simple web platform to the advanced thinkorswim, investors can choose the platform that best suits their needs.
Customer Service Experience at TD Ameritrade
TD Ameritrade is well-regarded for its excellent customer service, which is available 24/7 via phone, email, and live chat. Here are some of the key features of TD Ameritrade’s customer service experience:
- Personalized Support: TD Ameritrade provides personalized support to each customer, starting with a dedicated account representative who can assist with account setup, trading, and account maintenance.
- Easy Access: TD Ameritrade offers multiple channels for customers to reach out for support, including phone, email, and live chat. Customers can also visit one of TD Ameritrade’s local branch offices for in-person support.
- Timely Response: TD Ameritrade’s customer service team is known for its quick response times. Customers can expect to receive prompt and helpful assistance when they reach out for support.
- Education and Resources: TD Ameritrade provides a wide range of educational resources and tools to help customers make informed investment decisions. These resources include webinars, articles, and videos that cover a variety of investing topics.
- Comprehensive Support: TD Ameritrade’s customer service team can assist with a wide range of issues, including account setup, trading, technical support, and retirement planning.
Overall, TD Ameritrade’s customer service experience is highly regarded by customers and industry experts alike. The platform provides easy access to support, timely responses, and a wide range of educational resources to help investors make informed decisions.
- Advanced trading tools and platforms: 10
- Comprehensive customer service experience: 10
- Wide range of educational resources: 8
- Trading platform fees can be high for some traders: 6
- Limited banking features such as ATM access and checking account services: 4