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TD Ameritrade Review

TD Ameritrade Review

 

Overall Rating

4.5/5

Rated #537 of
Recommended FX Brokers

💰Minimum Deposit

USD 2000

🌐 Regulators

SEC

📱 Trading Desk

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

TD Ameritrade is an American forex broker company that is based in Omaha, Nebraska, one of the biggest in the world.

Finding a reputable TD Ameritrade review local or worldwide can be a difficult process, especially finding a complete list from a trustworthy reputable source.

Below is an in-depth review regarding TD Ameritrade to help you make an informed decision before opening your account or trading on their platform.

The research was recently conducted and found that TD Ameritrade is a forex broker company situated in the United States of America.

Forex brokers offer traders access to platforms, allowing them to buy and sell international currencies.  These brokers are also known as retail forex brokers or currency trading brokers. Retail currency traders then use these brokers such as these to gain access to the 24-hour currency market for speculation purposes, to make money.

Many institutional clients and institutional clients and large businesses such as investment banks make use of forex brokers.

A large share of TD Ameritrade’s stock is owned by Toronto-Dominion Bank (TD) which means that TD Ameritrade has a banking background, and is subject to tougher regulation than most brokers. TD Ameritrade is also listed on the NASDAQ stock exchange.

TD Ameritrade has continued to build on its edge with investors starting in the industry. TD Ameritrade reaches customers via a variety of social media sites, including Twitter and Facebook, and offers customers a choice of platforms, mobile apps, and think or swim, designed for derivatives-focused active traders.

 

Awards and Recognition

When it comes to forex broker companies, awards are a natural park of being recognized for great work. These awards come from many esteemed businesses and publications and contribute greatly to the company’s reputation.

TD Ameritrade is top of their class with awards including Best for Beginners, Best Stock Trading Apps, Best Overall Online Brokers, Best for ETFs, Best FOR Options Trading, Best for IRAs, Best for Day Trading, and also Best Web Trading Platforms.

 

TD Ameritrade Accounts

Forex accounts are trading accounts opened by a trader with a company like TD Ameritrade. The account is primarily issued to buy and sell financial currencies.

The number and type of accounts that traders can open with a broker company like TD Ameritrade depend on the country in which the brokerage trades, the country where the trader lives, and the regulatory authorities that protect the traders.

 

Types of Accounts and its Features

A forex account at TD Ameritrade is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are better known as swap-free accounts as they do not incur rollover interest on overnight positions as this is against the Islamic faith.

Generally, the number and account types to be opened with a broker company differ depending on the country where it operates from, as well as the authorities regulating the forex brokerage.

With TD Ameritrade, you can open an individual account owned by one person, joint accounts which has two or more account owners, or accounts owned by businesses.

 

Deposits and Withdrawals

TD Ameritrade does not ask for fees to deposit money and it offers a variety of options.

Clients residing in the United States of America can deposit money to TD Ameritrade using checks, ACH, and wire transfers, while traders from Hong Kong, Malaysia, and Singapore can make use of wire transfers and checks to deposit money to TD Ameritrade. Unfortunately, credit/debit cards and electronic wallets are not allowed.

TD Ameritrade does not charge fees to withdraw money in most cases, except with bank/ wire transfers, which will incur fees of $25. With TD Ameritrade, you have to wait up to two business days for your withdrawal, but you can also only withdraw money to accounts in your name.

 

Cost and Fees, Commissions and Spreads

The cost of trading on the forex markets depends on different factors. These include commissions, spreads, and margins.

The spread of a currency pair is known as the variance between the bid and the asking rate. A pip signifies the smallest rise that an exchange rate can move at. A pip is 0.01 for currency pairs with JPY as the term currency and 0.0001 for all other pairs.

A margin is the total amount of money needed in your account to open a position and is determined based on the current price of the base currency against USD, the size (volume) of the position, and the leverage that is applied to your forex trading account.

Commissions are charged by investment brokers trading on your behalf. These commissions vary between brokers and also depend on what is being traded at the time and the type of service the broker is offering.

There are also execution-only brokers. They are not involved in any personal investment advice forex traders then have complete control over how they trade the markets.

They generally also charge less.

Contract for differences (CFDs) trading is a type of derivative trading that allows traders to gamble on the rising or falling prices when it comes to fast-moving international financial markets. However, their trading on shares will incur additional commission.

CFD trades on other markets do not incur commission but wraps a spread around the market prices of various instruments.

TD Ameritrade charges low forex trading fees, including zero commission when it comes to online equity or ETF trades. If you want to trade OTCBB, you will pay a fee of $6.95 per transaction.

Furthermore, TD Ameritrade charges $0.65 per-contract commissions, and no fees are charged for contracts at $0.05 or less. If you execute an order for 50 options, you will pay $32.50 with TD Ameritrade.

Covered call trade of 500 shares plus five contracts will incur a fee of $3.25 and mutual fund commission for funds outside the No Transaction Fee program comes to $49.99.

Margin interest ranges from 10.25% for a $10,000 balance to 8.50% for over $100,000 as of January 2020 with TD Ameritrade.

TD Ameritrade charges transaction fees of $2.25 per contract per side on futures plus additional exchange fees. Forex currency pairs can be traded in increases of 10 000 units and no commission is charged.

If your account is inactivity, TD Ameritrade won’t charge you any fees. Transferring just a section of an account is free, but the transfer of an entire account will rack up to $75.

 

Leverage

Leverage enables a trader to get more exposure to the market than the amount he or she deposited to open a trade. These leveraged products amplify a trader’s potential to make a profit, but there is a greater potential loss too.

Leverage is expressed as a ratio, for example, 50:1, 100:1, or 500:1. Assuming a trader has $1,000 in his or her trading account and is trading ticket sizes of 500,000 USD/JPY, that leverage will be equal to 500:1.

With a TD Ameritrade margin account under $25 000 of your own personal money, leverage generally measures about 2:1. Your leverage can change a little, depending on the amount of money you have.

 

Bonuses

Forex brokers often lure new traders with lucrative offers of attractive deposit bonuses. While this could be useful, knowing what a proper bonus equates to is more important.

These bonuses are generally all but a way to reward clients for choosing a certain brokerage company. Once an account is opened, the trader will always have the same expenses. The bonus is just a prize for the trader’s choice that gives some of these expenses back to the trader, once proving himself as active.

Always note that while deposit bonuses may be seen as a great way to help you start trading, it often comes with ridiculous terms so that even if you do make money, you have to trade such high volumes before withdrawing your money, that it is not worthwhile.

Also, The European Securities and Markets Authority (ESMA) has since 1 August 2018 prevented the marketing, distribution, or sale of CFDs to retail clients. This prevents brokers from directly or indirectly providing the retail clients with a payment, monetary, or excluded non-monetary benefit about the marketing, distribution, or sale of a CFD, other than the realized profits on any CFD provided.

TD Ameritrade does however encourage the opening of accounts in turn for receiving a bonus. When the research was conducted, TD Ameritrade offered up to $2,500 for opening a brokerage or retirement account by the end of the year 2020.

 

Trading Platforms, Software, and its Features

Forex trading platforms are the software provided by companies like TD Ameritrade to its clients to trade successfully.

These platforms can include multiple assets at once so can allow a client not only to trade forex, but also CFDs on stocks, stock indices, precious metals, and the modern invention of cryptocurrencies.

Choosing a platform will be influenced by what the trader would like to trade, therefore it will be one of the criteria when choosing a broker too.

TD Ameritrade offers both web and desktop trading platforms. The web platform is suitable for trading execution and research on investment products, like stocks and ETFs.

Thinkorswim, TD Ameritrade’s own in-house platform is perfect for trading with complex products. Thinkorswim offers more products than only forex and futures and has sophisticated technical tools to assist with research.

 

Markets, Products, and Instruments

Most brokers offer all or some of the following kinds of market instruments for trading:

Forex:

Forex trading, also known as currency or FX trading involves a market where individuals, businesses, and financial institutions such as banks swop financial currencies for one another at floating rates.

Indices:

Equity or stock indices are real stock market indexes that measure the value of a section of a stock market. This can represent a specific set of the largest companies of a country or they can also represent a precise stock market.

Commodities:

Just like when it comes to currency exchange markets, commodity markets offer different investment opportunities for those keen on trading. The best way to lessen your risks is to invest in tradable goods already under contract. This is a good option during times of inflation and economic doubt, as happened during the coronavirus pandemic in 2020.

Precious metals:

The trading of gold, silver and other metals involves hard commodities. These are also contract-based tradable goods.

Energy:

The instability of energy prices makes this another popular option to invest in. Several factors, such as politics, environmental factors, supply and demand, dangerous weather conditions, and the international economy all make prices unpredictable and worth investing in.

Cryptocurrencies:

Since the inception of cryptocurrencies, Bitcoin (BTC) has become the biggest digital currency with the largest market share and price levels since it started in 2008. Bitcoin dominates 50% of the market.

Litecoin (LTC) is a cryptocurrency similar to Bitcoin its scale is a little different.  LTCUSD is a fork of Bitcoin (BTCUSD), with its code copied from Bitcoin’s, but with a few changes and then launched as a new project.

Ripple (RPL) is a popular cryptocurrency among big banks. The Ripple network is the next-generation real-time gross settlement scheme that allows immediate cross-border fund transactions at low charges.

The second-largest cryptocurrency after Bitcoin is Ethereum (ETH). It permits developers to create smart contracts on a platform.

Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as a new version of the blockchain with different rules.

Traders can trade things forex, stocks, and future with TD Ameritrade. The broker also offers extra features like social trading and a Robo-advisory service. These offered products cover only the market in the United States.

When it comes to TD Ameritrade, product availability may vary across different countries. Singapore clients for example can only trade with stock, ETF, options, and futures while those from the United States can trade everything.

TD Ameritrade does not allow cryptocurrency trading, but CME Bitcoin futures, stocks long and short, OTCBB (Penny stocks), mutual funds (over 1,900 no-load, no transaction fee), bonds (corporate, municipal, treasury, and CDs) are allowed.

 

 

Safety and Regulation

One of the first things traders need to determine is whether a broker like TD Ameritrade is a safe option. Researching the watchdogs overlooking the company will tell you whether it is a safe option.

TD Ameritrade is regulated by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Commodity Futures Trading Commission (CFTC), Hong Kong Securities and Futures Commission, Monetary Authority of Singapore (MAS). Clients are covered by the United States investor protection scheme SIPC.

 

Customer Support

Future traders need to ensure a broker company can offer the necessary support and help whenever needed.

TD Ameritrade has a 24/7 telephone line, Chatbots deployed on Twitter, Facebook Messenger, Apple Business Chat, and WeChat for Asian clients. The TD Ameritrade mobile trader app offers live chat support.

 

Research

Before trading, do plenty of research. Trading confidently and achieving success depends on your knowledge and understanding of the markets.

TD Ameritrade has a few research tools which include trading ideas and detailed essential data.

The TD Ameritrade has an Income Estimator on their website giving an estimate of income your portfolio could produce. Potential traders can use the Peer Comparison tool on the website to match stock to its four closest peers against a variety of fundamental and proprietary social data points.

Additionally, a selection of sources can help you, including real-time streaming, scannable news by Dow Jones, Benzinga, Midnight Trader, MarketWatch, press release wires, TradersAudio live pit audio, CNBC Video, Benzinga Audio Squawk, Econoday calendar data, and Wall Street Horizons.

Customizable charting on the Thinkorswim platform and the website also provide guidance.

 

Education and Training

Before starting your journey with TD Ameritrade, avail yourself of all information and trading skills to be successful in the world of forex and commodity trading. If TD Ameritrade’s website is not sufficient, search for other educational sources to get the necessary abilities and understanding.

TD Ameritrade Network programming showcases nine hours of videos daily. TD Ameritrade also offers education modes, including live video, articles, recorded webinars, courses and quizzes, and content organized by skill level.

Learn how to use the Thinkorswim platform by downloading the simulator called paperMoney.6

 

Conclusion

TD Ameritrade is definitely a company worth trying out, knowing that its multiple platforms make research and trading available to a wide range of investors and traders. One negative is that TD Ameritrade charges high financing fees and doesn’t provide credit/debit cards and electronic wallets for money transfers.

 

Disclaimer

TD Ameritrade warns all potential customers that trading in forex and CFDs carry risk and may not be suitable for all investors.

Before proceeding with TD Ameritrade, carefully consider investment objectives, your financial situation, needs, and level of familiarity before investing money you can’t afford to lose.

TD Ameritrade warns that margin trading involves the potential for profit as well as the risk of loss and that movement in the price of foreign exchange and commodities is very unpredictable. TD Ameritrade cannot guarantee a maximum loss that a trader may incur, according to an investigation done.

 

TD Ameritrade at a Glance

Broker’s Name TD Ameritrade
Headquartered Omaha, Nebraska, United States of America
Year Founded 1978
Regulating Authorities Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Commodity Futures Trading Commission (CFTC), Hong Kong Securities and Futures Commission, Monetary Authority of Singapore (MAS).
Islamic Account (Swap Free) No
Demo Account Yes
Institutional Accounts Yes
Managed Accounts Yes
Maximum Leverage 2:1
Minimum Deposit There is no minimum deposit with TD Ameritrade
Deposit Options Checks, ACH, and wire transfers for American citizens. Wire transfer and check for clients in Hong Kong, Malaysia, and Singapore
Withdrawal Options Same as deposit options.
Platform Types Desktop and web trading supported through Thinkorswim.
OS Compatibility PC with Windows 7 or later and Mac or mobile with access to a browser.
Tradable Assets Forex, stocks, futures, ETFs, Mutual funds, cryptocurrencies, and annuities.
Customer Support Languages English and Spanish amongst others.
Customer Service Hours From 7:00 a.m. to 6:00 p.m. ET, Monday through Friday.

 

 

FAQ’s

 

Trading Environment

 

How many instruments can I trade with TD Ameritrade?

You can trade several different instruments with TD Ameritrade, which include the following:

  • Forex
  • Stocks
  • Futures
  • ETFs
  • Mutual Funds
  • Cryptocurrencies
  • Annuities

 

Which platforms are supported by TD Ameritrade?

TD Ameritrade provides the following popular trading platforms:

  • Web and Desktop
  • Thinkorswim

 

Does TD Ameritrade offer leverage?

Yes, TD Ameritrade offers leverage of 2:1 for accounts under $25 000. The leverage might change slightly depending on the amount.

 

What spreads can I expect with TD Ameritrade?

Visit the TD Ameritrade website for details of its spreads. If the details are not broad enough, contact their customer support service for more information.

 

Does TD Ameritrade charge commission?

TD Ameritrade generally does not charge commissions to trade stocks, ETFs, and options, but small commissions may be charged for other products.

 

Is TD Ameritrade regulated?

Yes, TD Ameritrade is regulated by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), Commodity Futures Trading Commission (CFTC), Hong Kong Securities and Futures Commission, and the Monetary Authority of Singapore (MAS).

 

Is TD Ameritrade a recommended forex trading broker for experts and beginners?

TD Ameritrade offers a trading environment for all types of traders, however, it is said that TD Ameritrade is a bit tricky for total beginners.

 

What is the overall rating out of 10 for TD Ameritrade?

7/10

 

Accounts

 

What is the difference between a demo and a live trading account?

Demo Accounts are offered by forex broker companies and are funded with virtual cash. It allows prospective clients the opportunity to experiment with the trading platforms and the features offered by the company.

Once a potential client is happy with the platform, they set up a real account with actual money.

 

Does TD Ameritrade offer a demo account?

Yes, TD Ameritrade offers a demo account.

 

Can I convert my demo account to a live trading account with TD Ameritrade?

Not clear from the information on the company homepage.

 

Which live trading accounts does TD Ameritrade offer?

  • Individual account
  • Joint Accounts

 

What are the available deposit currencies for a live trading account?

With TD Ameritrade you can trade up to 24 currencies which include popular currencies like the Euro, British pound, Swiss franc, and the Japanese yen.

 

Deposits and Withdrawals

 

What is the minimum deposit for TD Ameritrade?

There is no minimum deposit required with TD Ameritrade according to a quick search on the internet.

 

How do you make a deposit and withdrawal with TD Ameritrade?

TD Ameritrade offers the following deposit and withdrawal methods:

  • Checks, ACH, and wire transfers for clients in the United States of America.
  • Wire transfer and check for Hong Kong, Malaysia, and Singapore clients

 

You can only withdraw money into accounts in your own name.

 

Does TD Ameritrade charge withdrawal fees?

In most cases, TD Ameritrade mostly does not charge withdrawal fees, except with bank/ wire transfers, which cost $25.

 

How long does it take to make a withdrawal?

Withdrawing money with TD Ameritrade takes approximately two business days.

 

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

Table of Contents

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