TD Ameritrade Review USA

TD Ameritrade Review USA

In the dynamic realm of online brokerage, TD Ameritrade stands as a significant player, boasting a rich history dating back to its establishment in 1975. This comprehensive TD Ameritrade review USA aims to explore the intricacies of this platform, shedding light on its offerings, features, and the overall experience it delivers to investors.

Pros & Cons: Navigating the Terrain


1. Wide Range of Educational Content: TD Ameritrade distinguishes itself with an extensive array of educational materials, catering to investors of all experience levels. Beginners can leverage the platform’s stellar educational tools to gain confidence in their investment journey.

2. Expansive Trading Tools: Offering a plethora of trading tools and resources, TD Ameritrade ensures that users can seamlessly pursue their preferred investment strategies. From options screeners to research insights, it provides a toolkit for diverse investment approaches.

3. Well-Designed Mobile App and Website: The user-friendly mobile app and website provide a smooth investing experience with consistent functionality across different platform versions.

4. Excellent Client Support: TD Ameritrade’s client support is unparalleled in the industry, instilling investor confidence through quick resolutions and reliable service.


1. Fractional Shares Absent: A drawback for investors seeking to add portions of high-priced securities to their portfolio, as fractional shares are not offered. This feature is available through Charles Schwab, raising curiosity about its potential integration.

2. No Direct Crypto Trading: TD Ameritrade only provides indirect exposure to the cryptocurrency market through funds, Bitcoin futures, and over-the-counter trusts, omitting direct crypto trading options.

3. Cash Sweep Program Opt-In: The cash sweep program, designed to hold cash in an FDIC-protected account, requires users to opt-in, potentially causing some investors to miss out on interest on idle cash.

4. Post-Merger Platform Uncertainty: With the ongoing integration of TD Ameritrade and Charles Schwab, some uncertainties persist about the features and workflows that will survive in the combined platform.

Usability: Navigating the Seas of Investment

TD Ameritrade excels in user experience, offering a seamless and customizable platform across desktop, web, and mobile versions. The web version features a doc tool, allowing users to modify their dashboard with various modules like watchlists, account balances, RSS feeds, and market news.

In the mobile app, investors can easily monitor positions, balances, and market news on a single screen. Active investors benefit from efficient information scanning, easily accessing details on any security through a simple ticker symbol entry.


“I have been a thinkorswim user for several years. As a seasoned options trader, I find the platform to be incredibly powerful, while remaining user-friendly. I also find TD Ameritrade’s customer support to be excellent.” – Michael Sacchitello, CMT, Senior Investing & Trading Editor for Investopedia

Trade Experience: Navigating the Market

TD Ameritrade simplifies the process of entering, executing, and monitoring trades on both the web platform and the mobile app. Investors can utilize screening tools to filter stocks, ETFs, mutual funds, and more based on various parameters, facilitating decision-making for both beginners and experienced traders.

The thinkorswim platform caters to advanced traders, allowing extensive customization, technical analysis, and backtesting capabilities. A trading simulator provides a sandbox for users to experiment with their tools using the thinkScript® programming language.

Mobile Trade Experience

TD Ameritrade’s mobile experience shines, winning accolades for the best broker for the mobile app. With a user-friendly interface, real-time data streams, and seamless trade execution, the mobile app offers a powerful tool for investors on the go.

For more advanced charting features, the thinkorswim mobile app is recommended, providing enhanced capabilities for multi-leg options trading and position analysis.

Range of Offerings: A Diverse Investment Landscape

TD Ameritrade presents a wide range of tradable assets, including stocks, ETFs, options, futures, and innovative products like micro futures. However, the absence of fractional shares and limited support for fixed-income purchases on the mobile app are notable limitations.

Investors using TD Ameritrade can access a diverse array of assets:

– Stocks (long and short)
– Mutual funds (over 13,000, with more than 3,600 no-transaction-fee funds)
– Bonds (corporate, municipal, Treasury, and CDs)
– Futures/commodities
– Single and multi-leg option contracts
– Bitcoin futures
– Foreign exchange (70 currency pairs)
– OTCBB (penny stocks)
– Micro Futures

Order Types: Tailoring Trades to Preferences

TD Ameritrade offers various order types across its platforms, empowering investors to tailor their trades to specific strategies and market conditions. Typical order varieties encompass market orders, limit orders, stop orders, and trailing stops.

Advanced Order Types:

– OCO (One-Cancels-the-Other)
– Bracket Orders
– Trailing Stop Orders

These advanced order types cater to more sophisticated trading strategies, providing enhanced flexibility for investors.

Fees and Costs: Navigating the Financial Landscape

TD Ameritrade’s fee structure aligns with industry standards, with a highlight being the absence of commissions for online equity or ETF trades. While some fees, such as OTCBB trades, might be slightly higher than competitors, the overall fee structure is transparent and competitive.

 Key Fee Highlights:

– Online equity or ETF trades: No commissions
– OTCBB trades: $6.95 per transaction
– Options trades: No per-leg commission, $0.65 per contract
– Mutual fund commissions: Range from $49.99 to $74.95 (outside No Transaction Fee program)
– Margin interest: Ranges from 14.50% to 12.50%, negotiable for high-net-worth account holders
– Futures transaction fees: $2.25 per contract per side plus exchange fees
– Forex currency pairs: Traded in increments of 10,000 units with no commission, compensated through spreads

Additional Costs and Revenue Streams:

– Interest on cash: Clients need to opt into the cash sweep program to earn interest on idle cash.
– Payment for order flow: TD Ameritrade accepts payment for order flow (PFOF) for equities and non-marketable orders.
Stock loan programs: Clients can participate, but the choice of loaned stock is not provided.
Price improvement: Average net price improvement per share is disclosed for equities but not for options orders.
Portfolio Margin: Qualified investors with $125,000 or more may benefit from lower margin requirements.

Research and Analysis: Equipping Investors with Knowledge

TD Ameritrade doesn’t fall short in the research and analysis department. From stock screeners to ETF and mutual fund screeners, options screeners, and fixed income screeners, the platform provides an extensive toolkit for investors to make informed decisions.

Key Research Features:

– Stock Screeners: Choose from 25 predefined screeners or build custom screens based on various parameters.
– Options Screeners: Explore specific options strategies with tools like Spread Hacker and Options Hacker.
– Fixed Income Screeners: Access the Bond Wizard for filtering individual bonds and CDs.
– Tools and Calculators: A variety of financial calculators and tools, including an Income Estimator, Portfolio Planner, Retirement Calculator, and more.
– Charting: The thinkorswim platform excels in charting, offering comprehensive features for both beginners and sophisticated traders.

 News and Third-Party Research:

News: Access to various news sources, including TD Ameritrade Network, Dow Jones, Benzinga, CNBC Video, and more.
Third-Party Research: Daily market reports and fee-based research are available, with premium Market Edge subscriptions for in-depth insights.

Education: Empowering Investors for Success

TD Ameritrade stands out as a leader in investor education, offering a robust curriculum that caters to users with varying levels of expertise. The Immersive Curriculum, in particular, breaks down trading concepts and investing strategies into individual lessons.

Educational Resources:

– PaperMoney®: A powerful demo account tool for hands-on learning.
– Live Broker Fee: $25 per trade across asset classes.
– Customer Service: 24/7 support via phone, email, chat, and social media.

Security and Reliability: Safeguarding Investor Interests

TD Ameritrade prioritizes security, providing two-factor authentication, biometric features, and significant protection for client securities and cash. Despite some login issues in 2020 and intermittent downtime in 2021, TD Ameritrade has not reported significant data breaches in the last four years.

Security Measures:

Two-Factor Authentication: Available for all platforms.
Protection Coverage: $149.5 million for securities and $2 million for cash, supplemented by London insurers.
Unauthorized Activity: Reimbursement for cash or securities lost due to unauthorized activity.

Transparency: Illuminating the Fee Landscape

TD Ameritrade maintains transparency in its fee and pricing structure, with a dedicated area on the website for fee disclosures and pricing details. While some pricing, such as margin rates, may be updated more frequently, the overall structure remains clear and accessible to investors.

Account Types: Tailoring to Diverse Financial Goals

TD Ameritrade offers a diverse range of account types, catering to various financial goals and investment strategies. From individual brokerage accounts to retirement accounts, education savings plans, trusts, and business accounts, investors can choose the account type that aligns with their specific needs.

Notable Account Types:

– Individual Brokerage Accounts
– IRAs (Traditional, Roth, Rollover, SEP, SIMPLE)
– Solo 401(k)
– Education Savings (529 Plans, Coverdell)
– Trusts, Partnerships, Corporate Accounts
– Small Business Plans
– Margin Accounts

Final Verdict: A Powerhouse for Investors

TD Ameritrade emerges as a top broker for customer service and investor education. Its robust platform, thinkorswim, offers unparalleled screening functionality, research capabilities, and analysis features. As the integration with Charles Schwab progresses, TD Ameritrade’s comprehensive experience is poised to expand further.

Frequently Asked Questions (FAQ’s) About TD Ameritrade Review USA :

Is TD Ameritrade Good for Beginners?
-Yes, TD Ameritrade is well-suited for beginners, offering education, user-friendly platforms, commission-free trades, and robust support.

What is the required amount to start an account with TD Ameritrade?
-You have the option to initiate a TD Ameritrade account without any initial deposit. However, for advanced privileges like margin trading or options, a $2,000 deposit is required.

What Are the Advantages of TD Ameritrade?
-Advantages include a powerful trading platform, transparent pricing, real-time quotes, and extensive educational content.

What Are the Disadvantages of TD Ameritrade?
-Drawbacks include the absence of direct crypto trading, fractional shares, and the need to opt into the cash sweep program for interest.

In conclusion, TD Ameritrade remains a powerhouse in the online brokerage landscape, offering a compelling blend of education, tools, and support for investors of all levels. As it continues its journey alongside Charles Schwab, the platform’s evolution is one to watch in the ever-changing landscape of online investing.

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