TD Ameritrade Review: Pros and Cons
TD Ameritrade fees are higher than competitors, but is it worth it? We say yes and here's why. We analyze and compare it for you in our in-depth review.
Overall Score | 4.2 | ||
Stock Trading | 3.5 | ||
Options Trading | 4.0 | ||
Banking | 4.0 | ||
Mobile App | 5.0 | ||
Commissions and Fees | 3.5 | ||
Ease of Use | 5.0 | ||
Online Community | 3.0 | ||
Research | 5.0 | ||
Trading Platform | 5.0 | ||
Pros and Cons
- Easy to Use
- Thinkorswim Platform
- Customer Service
- Trade Fees
Bottom Line
Good online broker for long-term investors
TD Ameritrade is one of the biggest and oldest names in online brokerages. It now offers $0 commission for online stock, ETF, and option trades.
In this in-depth review, we'll go over the advantages of using TD Ameritrade, why it may not be for you, and comparisons with other online brokerages.
Why We Like It
- The Thinkorswim platform's goodies: Thinkorswim is TD Ameritrade's top-notch trading platform. It offers advanced tools, from heat maps to earnings calendars to back testing (trying out a current strategy on historical financial information), making research possibilities seemingly endless. The tools and features available manage to please the newbies as well as the most analytical of traders.
- Easy access to the heart of the site: The best part about using TD Ameritrade is that there are no trade or account value thresholds you have to meet in order to access the Thinkorswim gold standard platform.
This is a major differentiating factor from its competitors. Other sites often provide a lower tier platform to casual investors and reserve the more advanced platforms for the most active of traders. With TD Ameritrade, you have the option of "graduating" to the more advanced platform at any time if you find yourself in need of more technical or in-depth analysis.
- User-friendly website: Trading platforms aside, the TD Ameritrade site itself comes with some nice perks for users. There's a customizable sidebar, real-time quotes, and a feature called SnapTicket, which lets you execute trades from any page instead of having to navigate back to a central trading page every time you want to buy or sell.
- Always-on customer service: Customers have access to 24/7 support, either by phone or email. Customer service has been reported to be extremely professional, knowledgeable, and fast responding.
- No minimum deposit: TD Ameritrade requires no minimum deposit to open an account, so you can start investing with as little as you'd like. Most other online brokers have a minimum requirement to open an account.
Commission-Free Trading - Online Stock, ETF and Option Trades
Applies to U.S. exchange-listed stocks, ETFs, and options. A $0.65 per contract fee applies for options trades, with no exercise or assignment fees.
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M1 Investment Account - Up to $500 Bonus
Open a new M1 investment account. Deposit $10,000 or more into the account within 14 calendar days of account opening. Promotional credit will depend on the deposited value made into the account.
| Deposited Value | Promotional Credit |
|---|---|
| $10,000 - $29,999.99 | $75 |
| $30,000 - $49,999.99 | $150 |
| $50,000 - $99,999.99 | $250 |
| $100,000+ | $500 |
This offer is only for customers who have never registered for an M1 user account.
Get a Free Slice of Stock
- Invest in stocks, ETFs, and crypto - all in one place.
- Follow other investors, share insights, and build your financial literacy within a transparent community
- Offer valid for U.S. residents 18+ and subject to account approval. There may be other fees associated with trading. See Public.com/disclosures/
Get up to 12 free fractional shares
- Register and open a new account.
- Then, deposit any amount to get 6-12 free fractional shares.
J.P. Morgan Self-Directed Investing
- Get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money.
- $700 when you fund with $250,000 or more
- $325 when you fund with $100,000-$249,999
- $150 when you fund with $25,000-$99,999
- $50 when you fund with $5,000-$24,999
- Get unlimited commission-free online stock, ETF, fixed income, and options trades when you open an account.
- $0 Online Commission trades
- Choose an account that's right for you: General Investing, Traditional IRA or Roth IRA.
- Access our secure, easy-to-use trading experience online or through the Chase Mobile® app.
- Our powerful tools and resources are built to help you take control of your investments.
INVESTMENT AND INSURANCE PRODUCTS ARE:
Drawbacks
- Potential confusion with multiple apps and platforms: While it's nice to have options, having 2 distinct mobile apps and 2 distinct trading platforms - both of which have very different target audiences - might get a bit confusing for those who are new to the platform. You'll definitely have some homework to do to figure out which platform and mobile app is the best fit for your needs.
Ally Invest: Commission-Free Stock Trades
With no minimum account balance and no minimum trade activity
Who TD Ameritrade Is Best For
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TD Ameritrade charges more per trade than some of its competitors, but it makes up for that with a great trading platform and superior research offerings. You may find that they're worth those extra couple of dollars.
We think this platform is good for moderately experienced to experienced investors who want to build wealth for the long haul and who will appreciate the slew of features, analytical tools, and research options. It might be overkill for the more beginner of investors, who may not take full advantage of all the features. In that case, you might be better off with a lower cost online brokerage.
We'll explain more below. But first, let's highlight the current TD Ameritrade promotions.
TD Ameritrade Promotional Codes
Commission-Free Trading - Online Stock, ETF and Option Trades
Applies to U.S. exchange-listed stocks, ETFs, and options. A $0.65 per contract fee applies for options trades, with no exercise or assignment fees.
Open an IRA in 15 minutes or less.
Commissions and Fees
TD Ameritrade's fee structure is as follows:
- Stock Trade Fee (flat): $0
- Options Base Fee: $0
- Options Per Contract Fee: $0.65
- Mutual Fund Trade Fee: Up to $49.95 or $74.95 for buys. $0 for sells
- Broker-Assisted Trades Fee: $25.00
You do have access to 300+ commission-free ETFs, but if you purchase one of them and then sell it within 30 days, you'll be subject to a short-term trading fee.
Research Tools
TD Ameritrade's on-site research tools are impressive: a single search will bring you several different third-party research reports. Third-party data on securities is provided by Thomson Reuters (equities) and Morningstar (mutual funds). You also have the option to customize your site's appearance with the My Dock sidebar feature - choose up to 13 modules to display at once, depending on which information you want most easily at hand.
Another major feature of the site is the streaming of real-time quotes - a functionality not matched by some of the other main competitors. Investors who like to be able to trade quickly will also appreciate the SnapTicket feature, which allows you to place orders from any page on the site.
Trading Platform
TD Ameritrade has made 2 different trading platforms available to users:
- Thinkorswim is more geared toward highly advanced investors who will be doing in-depth technical analysis. It was a standalone trading platform until it was acquired by TD Ameritrade, and even the most analytical of investors will find little missing when using it. Heat maps, earnings calendars, and hundreds of technical studies to accompany each chart are just the beginning of what the Thinkorswim platform has to offer.
- Live streaming of real-time quotes and newsfeeds from CNBC
- Automatically roll forward your predefined strategy every month
- Market Maker Move that predicts the movement of your stocks based on market volatility
- Screen for stocks that meet your criteria
- Get recommendations from former CBOE traders
- See the market displayed through heat maps
- Back testing - trying out a current strategy on historical financial information
- Over 300 customizable technical studies for each chart
- myTrade forum that allows you to share your strategies and charts
- Live streaming of real-time quotes and newsfeeds from CNBC
- Trade Architect is intentionally streamlined toward more casual and/or beginner investors. It's still a very good platform, offering real-time quotes, tools and third-party research, and fully customizable layout.
Both are available to any TD Ameritrade customer who wants to use them. There are no trade quantity or account value thresholds to access either one.
Mobile App
Like its trading platforms, TD Ameritrade has decided to offer 2 different mobile apps as well. The names are similar, and therefore can be confusing for newer customers:
- TD Ameritrade Mobile is for the casual investor. You can view real-time quotes, get news and research, and monitor your accounts.
- TD Ameritrade Mobile Trader is for more active and advanced traders who want more functionality from their app. There's an In-App support so you can get live help from a trading specialist. You also get access to over 300 advanced charts, elite tools, and a virtual account funded in test money.
Online Community
Investors who want to plug in to the online community can access myTrade. This online forum allows investors to communicate with each other, see each other's trades, and even post investment-related materials (strategies, recommendations, or general opinions) to their own personal myTrade page.
How It Compares
ETrade: TD Ameritrade gives you extra features distinctly absent from the ETrade platform. ETrade does have a slight edge in the mobile app comparison, though.
TD Ameritrade | E*TRADE | |
|---|---|---|
Benefits and Features | ||
| Stock Trading | $0 commission for online stock, ETF, and option trades | |
| Options Trading |
| |
| Minimum Deposit | $0 for self-directed brokerage accounts; Managed portfolios start at $500 minimum | |
| Mutual Fund Trading | Up to $49.95 or $74.95 for buys. $0 for sells | $0 for no-load, no-transaction-fee funds; $19.99 for transaction-fee funds |
| Commission Free ETFs | ||
| Penny Stocks |  | |
| Broker Assisted Trades | ||
| Customer Service | ||
| Inactivity Fee | ||
| Maintenance Fee | ||
| Banking | Cash Management account offers free ATM withdrawals, no monthly maintenance fees, free online bill pay, and free check writing. | Checking account offers no minimum balance requirements, free online bill pay, and unlimited debit card and check transactions. |
| Mobile App | | |
| Desktop App | E*TRADE Pro (requires you to execute at least 30 trades during a calendar quarter or maintain brokerage account balance of at least $250,000) | |
| Forex Trading | | |
| Futures Trading | $2.25 per contract (plus exchange & regulatory fees) | $1.50 per contract, per side + fees (excluding bitcoin futures) |
| Locations | More than 100 locations in 34 states | |
| Seminars | ||
| Virtual Trading | Paper Trading to practice/test strategies and ideas. | |
| Stock Trading |    | |
| Options Trading | | |
| Banking | | |
| Mobile App | | |
| Commissions and Fees | | |
| Ease of Use | | |
| Online Community | | |
| Research | | |
| Trading Platform | | |
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. TD Ameritrade: Pricing information from published website as of 07/18/2019. E*TRADE: Pricing information from published website as of 12/05//2020. | ||
Fidelity: Fidelity undercuts TD Ameritrade on pricing, but Fidelity has a frustrating habit of using trading thresholds to limit which users get to use its most advanced trading platforms. With TD Ameritrade, any user can access the advanced Thinkorswim platform.
TD Ameritrade | Fidelity | |
|---|---|---|
Benefits and Features | ||
| Stock Trading | $0 commission for online stock, ETF, and option trades | |
| Options Trading | $0 per online trade, plus $0.65 per contract | |
| Annual Fee | ||
| Cryptocurrency Trading | ||
| Minimum Deposit | ||
| Mutual Fund Trading | Up to $49.95 or $74.95 for buys. $0 for sells |
|
| Commission Free ETFs | 357 including 28 Fidelity factor, sector, stock, and bond ETFs and 329 iShares® ETFs | |
| Phone Support | ||
| Live Chat Support | ||
| Email Support | ||
| Human Advisors | Optional coaching or investment management with human advisors (for added fees) | |
| Robo Advisor | Optional Fidelity Go robo-advisory service | |
| Assets Under Management | ||
| Penny Stocks | | |
| Tax Loss Harvesting | ||
| Goal Tracker | ||
| Automatic Deposits | ||
| Broker Assisted Trades | $32.95 per trade for representative-assisted trades. | |
| Customer Service | ||
| Good For | More experienced DIY investors; Mutual fund investors | |
| Inactivity Fee | ||
| Maintenance Fee | ||
| Online Platform | Yes (access to Active Trader Pro is available to those who trade 36 times or more in a rolling 12 month period) | |
| iPhone App | ||
| Android App | ||
| Banking | Cash Management account offers free ATM withdrawals, no monthly maintenance fees, free online bill pay, and free check writing. | Fidelity Cash Management Account includes reimbursed ATM fees, no monthly fee, no minimum balance requirement, FDIC insurance, mobile check deposit, free billpay and free checkwriting. |
| Mobile App | | |
| Desktop App | ||
| Two-Factor Authentication | ||
| Forex Trading | | |
| Futures Trading | $2.25 per contract (plus exchange & regulatory fees) | |
| Locations | More than 100 locations in 34 states | |
| Online Community | ||
| Seminars | Yes, frequent webinars and courses for beginners | |
| Virtual Trading | Paper Trading to practice/test strategies and ideas. | |
| Fractional Shares | ||
| Taxable Accounts | ||
| 401k Plans | ||
| IRA Accounts | ||
| Roth IRA Accounts | ||
| SEP IRA Accounts | ||
| Trust Accounts | ||
| 529 Plans | ||
| Stock Trading | | |
| Options Trading | | |
| Banking | | |
| Mobile App | | |
| Commissions and Fees | | |
| Ease of Use | | |
| Online Community | | |
| Research | | |
| Trading Platform | | |
| Mutual Fund Trading | | |
Blank fields may indicate the information is not available, not applicable, or not known to CreditDonkey. Please visit the product website for details. TD Ameritrade: Pricing information from published website as of 07/18/2019. Fidelity: Pricing information from published website as of 12/05/2020. | ||
Bottom Line
Whether this broker is right for your needs may come down to price. You will get a breadth of resources, access to round-the-clock customer service if you run into a snag, and easier access than you might get with another firm (TD Ameritrade does stand apart for not requiring a minimum deposit).
Will you be trading so much that the per-trade fee is going to really hurt? Or do you find the price worth it for the access to research and a tool that you may feel comfortable using?
Only you can decide (and the answer depends on whether you are more of a beginner investor or not), but TD Ameritrade does get a vote of approval from us.
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Leah Norris is a research analyst at CreditDonkey, a personal finance comparison and reviews website. Write to Leah Norris at leah@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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