TD Ameritrade review 2023: should you sign up with this broker?

Time for some history lessons. I will tell you an interesting story of how the brokerage was formed. TD Ameritrade was founded in 1975 and has been a leader in the brokerage industry for many years.

When the Securities and Exchange Commission removed fixed brokerage rates on May 1, 1975, TD Ameritrade was one of the first to cut its prices. The company (then known as Ameritrade) pioneered push-button telephones for order entry.

The modern era of the firm began in 1996 when it combined with electronic trading platform operator TransTerra. The dot-com boom witnessed a significant increase in internet trading and Ameritrade benefited from it. Over the next decade, the firm expanded organically and via acquisitions.

Ameritrade bought TD Bank’s US brokerage division in 2006, giving TD a 40% share in the company. It changed its name to TD Ameritrade. The trading software startup Thinkorswim was bought in 2009.

It served as the foundation for the trading platform that TD Ameritrade now provides to you and me. Two significant breakthroughs have occurred in recent years. First, TD Ameritrade purchased main rival Scottrade in 2017. Charles Schwab bought TD Ameritrade in 2020.

TD Ameritrade homepage

I hope you liked that history lesson. But let’s come back to the present. The broker now provides investing and trading services for 11 million accounts with a combined asset value of more than $1 trillion.

It has made the top brokers’ list for years. According to Investopedia, TD Ameritrade is the

• Best Broker for Beginners
• Best Broker for Mobile

One thing to add here; the broker isn’t available outside the US except in Singapore. It was available in Hong Kong until February 28, 2022. So, that’s a bummer for most people.

Who are TD Ameritrade’s regulators?

It’s good to have a strong track record. So, TD Ameritrade must have top-tier regulators. Or does it? Let’s find out.

When you scroll to the bottom of the About Us section on its website, you can find the broker’s regulators. TD Ameritrade has licenses from:

• FINRA (Financial Industry Regulatory Authority)
• SIPC (Securities Investor Protection Corporation)
• MAS ( Monetary Authority of Singapore)

TD Ameritrade regulations

How does TD Ameritrade work?

So, TD Ameritrade is solid in its history and regulators. But what about the trading assets? Do they offer a lot? Let’s find out!

TD Ameritrade provides plenty of tradable assets. Stocks, forex, options, futures, ETFs, and mutual funds. Let’s talk a bit about the assets.

Forex

• GBP/USD
• EUR/USD
• USD/CHF
• NZD/USD
• AUD/USD and 70 more

Stocks

• Alphabet
• Apple
• Amazon
• Bank of America
• Boeing, and more

ETFs

• Vanguard
• Global X
• iShares and 3,500 more

Mutual Funds

• Vanguard 500 Index
• Fidelity 500
• JP Morgan Market Fund
• Morgan Stanley Inst and 13,000 more

Bonds 

• US 10-Year and more

Although the broker doesn’t provide crypto trading, you can invest in:

• OTC trusts
• Mutual funds and ETFs
• Bitcoin futures

TD Ameritrade products page

Regarding stocks and ETFs, TD Ameritrade has entered the $0 fee club. It offers highly competitive pricing; one of the best, if not the best in this category.

Broker-assisted trades and phone trades cost $25 and $5, respectively. TD Ameritrade also does not charge market data fees, inactivity fees, platform fees, or any other hidden fee.

How does the TD Ameritrade platform work?

Remember I told you that TD acquired Thinkorswim in 2009? That’s not the only platform the broker offers. You have many options available. Let’s see what those are.

TD Ameritrade offers web, desktop, and mobile platforms. They made my trading easier, and I’m sure the same will happen to you. There are five trading platforms available. They are:

• Classic web platform
• Next gen web platform
• TD Ameritrade mobile
• Thinkorswim web
• Thinkorswim desktop
• Thinkorswim mobile

Let’s talk about them.

Classic and next gen web platforms

The classic web platform has all the tools and resources you need to kick-start your trading journey. The next gen is an upgrade to the classic platform.

You can trade all types of assets on both platforms. They are super user-friendly, with added features like live news, third-party research, and trading watch lists.

TD Ameritrade classic web platform

TD Ameritrade mobile platform

The mobile platform offers the same features as the classic and next gen platforms. You can have live quotes, news events, charting tools, and technical indicators.

You can also connect the app to the Apple Watch. I haven’t tried it but it looks cool.

TD Ameritrade mobile platform

Thinkorswim platform

Thinkorswim was built by traders for traders, and TD Ameritrade owns it. You can access all of the charting tools and technical indicators you’ll need to succeed. TD Ameritrade offers desktop, web, and mobile Thinkorswim platforms.

I enjoy Thinkorswim’s trading tools, trading simulator, stock screener capabilities, the platform’s competitive price, and many order types. However, I’ll put a disclaimer here. It’ll take some time for you to get the hang of the platform. But once you do, it’ll make your trading a lot easier.

Thinkorswim web platform

What trading indicators are available?

As an active trader, I know the importance of trading tools. I rely on many tools like the Economic Calendar. One of those tools is technical indicators.

TD Ameritrade offers more than 300 technical indicators on classic and Thinkorswim platforms. Some of the available indicators are:

• RSI
• Stochastics
• MACD
• Bollinger Bands
• Moving Averages, and many more

TD Ameritrade offers four account types. They are:

• Standard
• Retirement
• Education
• Specialty

Each account comes in different types and with different features. So, let me break it down for you.

1. Standard

This is the account that many users prefer. I also have a standard account. The standard account has different types

• Individual
• Joint Tenants with Rights of Survivorship (JTWROS)
• Tenants in Common
• Community Property
• Tenants by the Entireties
• Guardianship or Conservatorship

You can open every type of standard account with $0. But if you want to trade on margin, you’ll need a $2,000 minimum deposit.

2. Retirement

If you want to set aside money for the future, you can open a retirement account with TD Ameritrade. It has the following account types:

• Traditional IRA
• Roth IRA
• Rollover IRA
• SEP IRA
• Solo 401(k) (for small businesses)
• SIMPLE IRA (Savings Incentive Match Plan for Employees)
• Pension or Profit Plan

There is no minimum initial deposit required to open an account and no maintenance fees for retirement accounts.

3. Education

How about gaining a degree while also saving some cash? TD Ameritrade education accounts do that. This account also comes in different types:

• 529 Plans
• Coverdell Education Savings Account
• Custodial Uniform Gift to Minors Act (UGMA)/Uniform Transfer to Minors Act (UTMA)

You can open an account with no minimum deposit.

4. Speciality

Trusts, limited partnerships, small companies, charities, and investment accounts are examples of specialty investment accounts. There are several types, including;

• Trust
• Limited Partnership
• Partnership
• Investment Club
• Limited Liability
• Sole Proprietorship
• Corporate (profit or nonprofit)
• Non-Incorporated
• Small Business Plans
• Charitable

Each account type has different requirements. But there is no minimum for all account types. If you want to trade on margin, you can with a minimum deposit of $2,000.

TD Ameritrade account types

Does TD Ameritrade offer a demo account?

You should devise a proper trading plan before risking any dollars in trying your hand at active trading. The most effective method is to use paper trading apps or platforms. Paper trading is another name for a demo account. So, don’t get confused.

But as for the question “Does TD Ameritrade provide a paper trading or demo account?” Indeed, it does! The paperMoneyⓇ simulator from TD Ameritrade allows you to practice trading by providing you with $100,000 in virtual cash. The free simulator runs on the broker’s powerful Thinkorswim trading platform.

The broker offers the best data and information security. TD Ameritrade employs firewalls, anomaly monitoring, intrusion detection, and encryption technologies to keep information and assets secure. While there is always the danger of losing money while investing, TD Ameritrade promises refunds.

It will repay you if you lose money from your account due to fraudulent conduct. In addition, TD Ameritrade is a member of SIPC, which provides securities clients with up to $500,000 in protection. So, the broker is super safe.

TD Ameritrade’s headquarter is at 16811 Burke Street Suite #101, Omaha, Nebraska. However, it has offices in all 50 states.

TD Ameritrade location

Who owns TD Ameritrade?

Time to jog your brain!  Do you know who owns TD Ameritrade? I talked about it earlier. Can you remember?

TD Ameritrade is a subsidiary of Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

There are five ways to fund your account.

• Electronic bank deposit (ACH)
• Wire transfer
• Account transfer from another firm
• Check
• Physical stock certificates

Electronic transfer is the fastest method and takes about five minutes. You need a $20 minimum deposit for electronic transfers. All other methods take 1-3 business days. Account transfer from another firm can take about a week.

How to withdraw funds from a TD Ameritrade account

Are the withdrawal methods the same as the deposit methods in the case of TD Ameritrade? Are there any additional fees? I’ll explain these questions here. Let’s find out more.

TD Ameritrade has the same withdrawal methods as those used for deposits. Also, it takes the same amount of time. There are no additional fees for withdrawals or deposits.

TD Ameritrade payment methods

There are several ways to contact this broker, like phone or email. But one interesting method is something other brokers don’t offer. You can speak directly with TD’s representatives by visiting any nearby branch.

Customer service is just a short drive away, thanks to hundreds of branch offices across the US. You can also contact them through social media.

TD Ameritrade offers promos only through its Singapore entity. The broker pays you $100 for changing your broker. However, you have to deposit $3,500 to your TD Ameritrade account.

TD Ameritrade promo

Does TD Ameritrade offer bonuses?

I’m sure you love free offers. Bonuses are part of a broker’s free offers.

But what options does TD Ameritrade provide? Let’s find out! TD Ameritrade doesn’t offer any bonuses.

TD Ameritrade does charge taxes on profits. The rate is 15% for the majority of investors. If you sell an investment in the first year, it is termed a short-term gain, often treated less favorably.

The gain is treated as regular income, and the tax rate can be as high as 37% of the marginal tax rate. You can read more about the taxes here.

TD Ameritrade was the broker I so wanted to try. So, I opened my account in 2016. I love the information and the details that the broker provides. Everything is self-explanatory.

Whether you want to find the investment options or the countries available, you can find them instantly. I like the multiple account types and the trading platforms. The available resources and the tools are superb also.

I like the overall trading conditions and to top it all, you can start with $0. Yes, there is no minimum deposit. Let’s see what others have to say:

Is TD Ameritrade good for beginners?

Yes, it is! TD Ameritrade is the superior option whether you’re a newbie searching for a larger selection of trading products or an advanced trader seeking a more sophisticated trading experience.

What happens if TD Ameritrade goes out of business?

If TD Ameritrade collapses, another financial business may agree to acquire the firm’s assets, and the broker will move accounts to the new custodian. The US government also offers insurance on up to $500,000 in securities or $250,000 in cash stored at a brokerage company, known as SIPC coverage.

Can I transfer my TD Ameritrade account to Charles Schwab?

Yes, you can. You need to add your TD Ameritrade accounts to your Account Summary view on Schwab.com for a complete picture of your investments and balances at both businesses.

Final thoughts

There you have it! We went into the depths of TD Ameritrade. For me, TD Ameritrade shines in every department.

TD outperforms its competitors, whether in relation to assets, platforms, account types, or customer support. However, the broker could improve its international availability. So, I’ll give it 4.7/5.

I hope this review was informative and time-saving for you. If you are looking for forex brokers other than TD Ameritrade, you can check the complete list of brokers here.

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