Updated March 14, 2019

TD Ameritrade Review: Pros and Cons

Read more about TD Ameritrade
Ad Disclosure: This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by using our links. (read more)

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
5-point scale (the higher, the better)

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.

Compare Investing Platforms

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.

Who TD Ameritrade Is Best For

© CreditDonkey

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

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

  • 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.

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.

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.

Ally Invest Coupon Codes

Get Up to $3,000

Expires 6/30/2022

The minimum qualifying deposit to receive a cash bonus is $10,000. Accounts will be reviewed 60 days after account opening to determine the total qualifying deposit. Corresponding cash bonus will be credited to the account within 10 business days. Once the bonus is credited to the account, the bonus and qualifying deposit (minus any trading losses) is not available for withdrawal for 300 days. If the qualifying deposit is withdrawn, the bonus may be revoked.

Deposit or TransferCash Bonus
$10,000 - $24,999$100
$25,000 - $99,999$250
$100,000 - $249,999$300
$250,000 - $499,999$600
$500,000 - $999,999$1,200
$1,000,000 - $1,999,999$2,000
$2,000,000+$3,000

Betterment

Get up to 1 Year Managed Free

New Betterment customers only. Accounts must be funded within 45 days of signup. Terms apply.

BlockFi

Get Up to $250 in Bonus BTC

DepositCrypto Bonus
$100 - $1,499$15
$1,500 - $19,999$20
$20,000 - $39,999$40
$40,000 - $74,999$75
$75,000 - $99,999$100
$100,000+$250

M1 Finance

Commission Free Stock Trading

M1 Finance allows investors the choice of ETFs and stocks. M1 charges no management fees or commission.

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.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Read Next:

Compare:

Choice IRA Review

Choice IRA Review

Choice IRA offers an all-in-one IRA for investors who want a lot of diversity in their retirement portfolio. But is it the right IRA for you?

About CreditDonkey
CreditDonkey is a personal finance comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2022 CreditDonkey Inc. All Rights Reserved.