TD Ameritrade Pros & Cons | Get Information at a Glance

Introduction

TD Ameritrade is one of the oldest online brokers in the US since 1975 with a long tracking record of +45 years and over 175 branches nationwide. It’s considered one of the safest brokers as it’s regulated by top-tier regulators like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Currently, TD Ameritrade has over 11 million users worldwide.

In this article we’re addressing the main pros and cons of TD Ameritrade in each broker aspect.

TD Ameritrade

Pros

Cons

Safety

  • Regulated by top-tier regulators SEC, FINRA, CFTC, and MAS
  • Have a banking background
  • Investor protection
  • Long tracking record since 1975
  • Listed on NASDAQ exchange
  • Over 11 million users
  • No negative balance protection
  • Does not cover currency, and interests in gold, silver, or other commodity futures contracts or commodity options.
  • No protection on futures and forex

Offering of Investments

  • Forex, ETFs, stocks, options, mutual funds, bonds, and futures
  • Social trading option
  • Managed portfolios option
  • No CFD trading
  • Limited products for international clients

Account Opening

  • Fast
  • Fully digital
  • Many account types
  • Mutual funds accounts
  • Minimum deposit is $0
  • Limited account trading options for clients outside the US.
  • No islamic account option

Fees and Commissions

  • No inactivity fee
  • Low commissions
  • No deposit and withdrawal fees on most of the options
  • Free stocks and ETFs
  • Withdrawal fees on bank transfers

Deposit & Withdrawal

  • No deposit or withdrawal fees
  • No credit card transferring option
  • Only one account base currency available (USD)
  • High withdrawal fees on wire transfers

Platforms and Languages

  • Customized Thinkorswim platform
  • Not available on MT4 or MT5
  • Available on Web and Mobile Platform
  • Two-step verification for login
  • User-friendly UI
  • Lots of order types
  • Educational materials available
  • No customizable platform

Research Tools

  • Fundamental data available
  • Good charting tool
  • Third party research tools available
  • None

Customer Service

  • Phone calls
  • Email support
  • Fast response
  • No live chat option

Education

  • Demo account
  • Educational videos
  • Articles
  • Guides
  • Webcasts
  • Seminars
  • None

FAQs

    1. How long does it take to verify my account?
  • It takes about 1 to 3 days to verify your TD Ameritrade account.
    1. Is my TD Ameritrade account protected?
  • Yes, If you lose cash or securities from your account due to unauthorized activity, TD Ameritrade will reimburse you for the cash or shares of securities you lost.
    1. Can I open more than one trading account?
  • Yes, you can, but some account types may be restricted from linking between devices.
    1. Does TD Ameritrade allow bot trading?
  • Yes, TD Ameritrade does provide an Autotrade option which is a service that automatically enters trade recommendations you receive from TradeWise and other third-party newsletter providers into your TD Ameritrade account.
    1. Does TD Ameritrade give a bonus?
  • Yes, TD Ameritrade does give a bonus up to $2,500 if you meet the following conditions:
  1. You make a deposit of $250,000 or higher.
  2. The deposit should be made within 60 calendar days from account opening.
  3. Before June 30, 2021.
    1. Can I trade margin or option?
  • Yes. As you’re completing the Account Application, simply complete the margin and/or options section.
    1. Does TD Ameritrade allow scalping?
  • Yes, TD Ameritrade offers scalpers three trading platforms: web browser, thinkorswim, and mobile.
    1. Is my money safe at TD Ameritrade?
  • Yes, because of the following reasons:
  1. The cash in your account can be held in a TD Ameritrade FDIC Insured Deposit Account (IDA).
  2. Balances in an IDA are held at one or more banks (“Program Banks”), where they are insured by the FDIC against bank failure for up to $250,000 per depositor, per bank.
  3. Two of the Program Banks are TD Bank, N.A. and TD Bank USA, N.A., both are affiliates of TD Ameritrade. Each bank will have separate FDIC coverage of up to $250,000 per depositor for up to $500,000 total per IDA depositor.
    1. Does TD Ameritrade have an islamic account option?
  • Unfortunately, TD Ameritrade does not provide such an option on its platforms.
    1. Can I login to the same account through different devices?
  • Yes, TD Ameritrade allows login to the same account from different devices.
    1. Does TD Ameritrade accept payments from third parties?
  • No, as all deposits into your trading account must come from a bank account in your name.

If you want more information, please check out TD Ameritrade Full Review.

 



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