TD Ameritrade review: Best broker for serious traders?
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TD Ameritrade is a top brokerage for traders across the United States. With competitive fees, a wide range of tools and account types, and excellent investor resources, this platform will certainly be worth considering if you're in the market for a new home for your stocks, bonds, and other investments. Here's our TD Ameritrade review.
4.5
4.5
Commissions and fees5
Customer service4.5
Ease of use4.5
Tools and resources4.5
Investment opportunities5
Accounts available4
Get complete access to all kinds of investment options without paying commissions from TD Ameritrade. One of its biggest advantages is it requires no minimum deposit to open an account. This is the closest we can find to a perfect online broker.
TD Ameritrade pros and cons
Pros
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No commissions on stocks, ETFs, and options
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Advanced trading platforms and tools
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Robust market research and investor education
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Great selection of accounts and investments
Cons
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Doesn't support fractional share investing
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No way to invest directly in crypto
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Robo advisor portfolios are no longer being offered
Who is TD Ameritrade for?
TD Ameritrade is best for active traders and hands-on investors. It offers both a beginner and an advanced platform (Thinkorswim) each of which have their own online, desktop, and mobile apps. Thinkorswim, in particular, is one of the most robust trading platforms available today. The broker also supports 24/5 trading on select securities.
TD Ameritrade's selection of 3,700+ no-transaction fee (NTF) mutual funds means that it could also be a good fit for long-term investors. However, you'll need to be comfortable with choosing all of your investments on your own.
NOTE: TD Ameritrade's Investment Management Services is no longer accepting new clients and instead refers potential advisory clients to its parent broker. We recommend other great brokerages such as Ally Invest, E*TRADE, and Fidelity.
TD Ameritrade features
What makes TD Ameritrade great?
TD Ameritrade consistently makes our list of the best stock brokers. Here are a few reasons why it continues to impress us.
Cutting-edge trading platforms
The Thinkorswim trading platform at TD Ameritrade is one of the most state-of-the-art on the market today. It boasts over 400+ technical studies. Other built-in advanced tools include monkey bars, renko charts, drawings (up to 20), and Fibonacci tools. Traders with coding knowledge can use thinkScript to build their own testing algorithms. And Thinkorswim even has its own proprietary stock screener called Stock Hacker.
The main TD Ameritrade platform is very capable as well yet may not seem as overwhelming to less experienced investors. It supports all of the same assets and nearly all of the same order types (with conditional orders being the key exception) as Thinkorswim.
Both platforms are available on web, desktop, and mobile. And regardless of which platform you use, you can practice trading without risking your own money and can open a margin account (provided that you meet the balance requirements).
Wide variety of account types
As a full-service brokerage, TD Ameritrade offers just about any type of account that you may want. That includes:
- Individual
- Joint Tenants WROS (With Rights of Survivorship)
- Traditional IRA
- Roth IRA
- Rollover IRA
- Trust
- 529 plan
- UTMA/UGMA
Margin accounts are also available for qualified clients. Another advantage to TD Ameritrade is that it has no minimum deposit requirement. This makes it easy for investors, both large and small, to start investing immediately.
Open an account with TD AmeritradeRobust Selection of Investment Offerings
TD Ameritrade can invest in a wide variety of assets. Tradable securities include:
- Stocks
- ETFs
- Options
- Mutual funds
- Bonds
- Futures
- Forex
One asset that TD Ameritrade doesn't currently support is cryptocurrency. Clients can buy shares of crypto-themed ETFs, but there's no way to invest directly in Bitcoin, Ethereum, or other coins.
Education & Resources
If you're a research enthusiast, you're likely to love TD Ameritrade. It provides economic data directly from the Fed that includes 400,000 global data points. Clients also receive access to third-party investment research from leading analysts and organizations such as Morningstar, Dow Jones, CFRA, and Thomas Reuters.
Most brokers offer at least some resources to help investors and traders level up their knowledge. But TD Ameritrade's Education Center takes things to the next level by providing a plethora of learning tools including articles, videos, webinars, courses, and live in-person events.
TD Ameritrade has even begun to offer voice-based support on Alexa and Google Assistance devices. You can simply say things like “Hey Alexa, ask TD Ameritrade for a quote on Facebook” or “Hey Google, ask TD Ameritrade for my watchlist.”
Open an account with TD AmeritradeWhat are TD Ameritrade's drawbacks?
While TD Ameritrade is one of our favorite brokers, it's not perfect. Here are a few areas where we feel it falls short.
No fractional shares
TD Ameritrade has built a reputation for quickly adding tools and features that the modern investor craves. And that makes it all the more surprising that it still hasn't launched fractional share investing on any of its platforms. If you're wanting to trade fractional shares of stocks and ETFs, here are a few alternative brokers to consider.
Not good for advice & planning
TD Ameritrade has begun phasing out its wealth management services. That means new clients won't be able to access any robo advisor portfolios. If you're looking for an all-in-one broker that can offer both self-directed trading and managed accounts, better options include Ally Invest, E*TRADE, and Fidelity.
Trade pricing and account fees
TD Ameritrade offers commission-free trading on stocks, ETFs, and options. There's also over 3,700+ no-transaction-fee (NTF) mutual funds that are available to trade on the platform.
Options trades come with a per contract fee of $0.65. Futures trade for $2.25 fee per contract (exchange and regulatory fees also apply). And when no-load mutual funds on TD Ameritrade do come with transaction fees, they can range from $49.95 to $74.95.
TD Ameritrade doesn't charge any account opening or inactivity fees. However, it does charge a $75 ACAT fee for transferring an account to a new broker.
How to contact TD Ameritrade
TD Ameritrade generally offers well-rated customer service. You can get help by phone or email or at a physical branch. You can also chat with them on Facebook Messenger or Twitter Direct Message.
Depending on your situation, here are the best numbers to call:
- New accounts: 800-454-9272
- Existing clients: 800-669-3900
- Retirement solutions: 800-213-4583
TD Ameritrade is a huge company, so many customer services are available 24/7. There are also more than 175 branch locations in the U.S. So if you live in or near a major metropolitan area, you may be able to access in-person support within a short drive of your home or work.
Best alternatives
While TD Ameritrade is a highly-rated stock broker, it won't be for everyone. If you prefer a more beginner-friendly investing experience, one of these TD Ameritrade competitors might be a better fit:
| Highlights | Ally Invest | TD Ameritrade | Robinhood |
|---|---|---|---|
| Rating | 4.5/5 | 4.5/5 | 4.25/5 |
| Min. investment | $0 | $0 | $0 |
| Stock trades | $0/trade | $0/trade | $0/trade |
| Options trades | $0.50/contract | $0.65/contract | $0 |
| Crypto trade | ❌ | ❌ | ✅ |
| Mutual funds | ✅ | ✅ | ❌ |
| Virtual trading | ❌ | ✅ | ✅ |
| Review | Ally Invest review | TD Ameritrade review | Robinhood review |
| - | Open account | Open account | Open account |
Here are a few comparison articles we've made to TD Ameritrade:
- TD Ameritrade vs. E*TRADE vs. Robinhood
- Vanguard vs. Ally Invest vs. TD Ameritrade
- Ally Invest vs. Robinhood vs. TD Ameritrade
The bottom line
TD Ameritrade is a competitive brokerage with reasonable fees, extensive resources, and great trading platforms.
While it's no longer a great option for clients who want access to wealth management services, TD Ameritrade is still one of the best stock brokers for DIY traders and investors.
Not sure that TD Ameritrade is right for you? See how it compares to the other top stock brokers.
Open an account with TD Ameritrade
Larry Ludwig is a freelance contributor for Moneywise.
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