TD Ameritrade Review

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TD Ameritrade really shines through with impressive extras. Its breadth of investment services, robust (and free) investor research and education, choices in trading platforms, and 24/7 customer service will be appealing to both beginner and advanced traders.

Stock Trading Fee
$0
Option Trade Fee
$0.65 fee per contract
Customer Satisfaction Score
778/1,000
SimpleScore
4.4 / 5.0
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SimpleScore TD Ameritrade 4.4
Mobile App 4
Products 4
Resources 5
Support Channels 5
Customer Satisfaction 4

TD Ameritrade is one of the largest online brokerages, with 6.6 million funded customer accounts and client assets worth over $650 billion. It has gone through several evolutions within the financial arena, but ultimately became TD Ameritrade in 2006 when it acquired TD Waterhouse USA and TD Financial Group.

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In this article

    TD Ameritrade Details

    Price – Stock Trades$0
    Costs & FeesOptions: $0 + $0.65 contract
    Mutual Fund Trades: $0
    Broker Assisted Trades: $25.00
    Account Fee: $0
    Inactivity Fee: $0
    Minimum Account balance: $0
    Minimum Deposit$0
    Account TypesFull service brokerage (stocks, bonds, CDs, 401K, other fixed income assets)
    Commission-free ETFs
    7,284 Mutual Funds (Load); 5,560 (No-Load); 3,547 (NTF)
    Options
    Futures
    Foriex
    No Fee IRAs
    Best ForBeginner investors and advanced investors
    Research and data
    Commission-free ETFs
    Customer support
    Not ForPrice-sensitive investors
    Broker-assisted trading
    Investors looking for a customizable platform
    Margins9.50% under $10,000.00
    9.25% $10,000.00 to $24,999.99
    9.00% $25,000.00 to $49,999.99
    8.00% $50,000.00 to $99,999.99
    7.75% $100,000.00 to $249,999.99
    7.50% $250,000.00 to $499,999.99
    Services24/7 by phone, email, live chat
    Branches106 locations in 32 states; see the branch locator
    PlatformThinkorswim ®
    Desktop (Windows & Mac)
    Web platform
    Mobile
    Streaming TV
      
    Standout FeaturesAuto Investing
    Charting – Display Corporate Events
    22 Charting & Drawing Tools
    Charting – Notes
    Heat Mapping
    Ladder Trading
    Level 2 Quotes – Stocks
    Level 2 Quotes – Options
    Option Chains – Streaming Real-time
    Option Analysis – P&L Charts
    Stock Alerts Delivery – Email, Sound, text
    Streaming Time & Sales
    Streaming TV
    Trade Hot Keys
    Virtual Trading
    Watchlists – Streaming Real-time Quotes
      
      
      
    Awards#1 for Long Term Investing (Barron’s 2016 Online Broker Review)
    #1 for Usability (Barron’s 2016 Online Broker Review)
    #1 for Amenities and Research (Barron’s 2016 Online Broker Review)<
    #1 for Novices (Barron’s 2016 Online Broker Review)
    Gold winner for news and research, investor education, online help (Corporate Insight 2015)
    • Costs and More: TD Ameritrade offers $0.00 commissions on online exchange listed US stock, ETFs, and options trades, regardless of account balance or how many shares you buy.
    • Learning Curve: It’s easy. New users might be slightly off put by the vast amount of functions and tools available in its platform, but after a few test drives, it’s easy to figure out. TD Ameritrade makes regular updates and overhauls on its platform, adding more and more features and user-friendly functions each year.
    • The Platforms: TD Ameritrade uses Thinkorswim, one of the best trading technologies in the industry – it was voted #1 trading platform by Barron’s. The details are plentiful which may be an initial turn off to new users, and it isn’t customizable, which may be a turn off to advanced users. Beyond this, it’s a stellar technology that has everything any type of trader would need.
    • Stock Trading Tools: The platform comes loaded with Command Center 2.0, Market Motion Detector, Pattern Matcher, QuoteScope, and Strategy Desk – all tools that will help streamline the trading process and make things easier, especially for new customers unfamiliar with online stock trading.
    • Education Center: TD Ameritrade created its Education Center in 2014, and it has been expanding ever since. It’s free, and most of it can be accessed even if you don’t have a TD Ameritrade account. New users can browse topics from portfolio management to retirement planning. There’s all the info anybody would ever need on stocks, bonds, ETFs, Options, Futures, and taxes, all in easy-to-access blogs, publications, courses, videos, and webcasts.

    TD Ameritrade’s Claim

    Old users stay with TD Ameritrade and new users regularly sign up with this online broker not only because of its reputable name, but because of its broad investment options, user-friendly technology, impeccable research and education libraries, and $0 minimum deposit and commission trades.

    Is it True?

    Yes. TD Ameritrade has a wide array of offerings, robust technology, and solid 24/7 customer service.

    Don’t let the $0 minimum deposit feature be the sole reason for signing up with any online stock broker. You’re going to have to deposit something, so usually beginner to intermediate investors will deposit between $500-2,500 anyway to make any sort of substantial trade.

    It’s difficult to find any real downsides with TD Ameritrade. The entire platform would give both new investors and seasoned traders a great, all-around experience. Users have free access to a high volume of investor education and research, real-time market reports and data, and its flagship platform, Thinkorswim, is considered the best in the industry. The only negative aspect I could really find with the dashboard platform is that it is not customizable like some of the platforms offered by other online stock traders. Upon closer inspection, I found no customizable options for their mobile apps either, which might be annoying to more seasoned investors who want to customize items in the dashboard or on their smart phones. However, I do find this an extremely small price to pay for the overwhelmingly positive experience, tools, and service TD Ameritrade offers.

    TD Ameritrade acquired Thinkorswim back in 2009 when Thinkorswim was a small, unknown, standalone broker that had developed a very robust and impressive trading platform geared for advanced users. TD Ameritrade ultimately paid $606 million to acquire that technology. It has since given the company a competitive edge in the industry; this platform is arguably the reason TD Ameritrade attracts every level of investor.

    Thinkorswim is run as a desktop application and has dozens of charts that stream real-time market data, 300+ customizable technical studies (the highest of all the online stock brokers), and is embedded with CNBC TV, heat-mapping, stock scanners, back testing, and a virtual trading platform – a beloved feature for new users who can experience what it’s like to trade without losing a penny. Thinkorswim is very well known in the industry and it is considered one of the best technologies traders can get their hands on today – it’s super easy to use and every feature and tool it has is available with nothing more than a click.

    The Competition

    • E*TRADE: $0 trade fee; $0 minimum deposit. E*Trade is largely recognized by its humorous television commercials and it markets to a large audience and therefore maintains a valuable customer-oriented presence.
    • Merrill Edge: Owned by Bank of America since 2010, Merrill Edge is affordable and would be beneficial for those who already have various BoA accounts.
    • Ally Invest: Ally Invest has gone through several evolutions since its formation in 2005. It has now emerged as a formidable competitor with affordable rates that are attractive to new investors.

    Customers are turning to TD Ameritrade because it offers everything all of the other major online stock brokerages offer, as well all the things each one tends to be lacking on. This could be anything from its investor education, user-friendly platform, or 24/7 customer service. Where each major online stock broker lacks, TD Ameritrade seems to pick up the slack.

    What Others Are Saying

    • TD Ameritrade settled with customers in 2011 after a 2007 hack that compromised most of its customers’ names, Social Security numbers, dates of birth, addresses, phone numbers, and trading activity.
    • CNN reported that in 2009, TD Ameritrade settled a lawsuit alleging it had marketed auction rate securities as short-term investments and included a $456 million payment and the buyback of the securities, compensating investors for losses.
    • PR Newswire announced on September 8th that a new technology, Financial Media Exchange (FMeX), will be joining TD Ameritrade.
    • On September 1, 2016, The Street reported on a TD Ameritrade study that asked Millennials about their favorite stocks (spoiler: they were risky).

    Methodology

    SimpleScore

    The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

    For every review, our editorial team:

    • Identifies five measurable aspects to compare across each brand
    • Determines the rating criteria for each aspect score
    • Averages the five aspect scores to produce a single SimpleScore

    Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best stock trading platforms and brokerages of 2020.

     

    Why do some brands have different SimpleScores on different pages?

    To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

    However, it’s also possible for brands to have multiple SimpleScores, as we measure each category individually with a separate set of criteria. For example, when we apply our methodology to Chase’s stock trading product, it scores a 3.6 out of 5. On the other hand, when we compare Chase checking accounts, it scores a 4.4 out of 5.

    Questions about our methodology?

    Email Hayley Armstrong at hayley@thesimpledollar.com.

    Mobile app rating

    We took an average of each stock brokerage’s iOS App Store and Google Play ratings and scored brands based on the result.

    Additional products

    Investing is not just about stocks. We rated brands based on their product variety including ETFs, bonds, mutual funds, IRAs and options. The more products means higher the score.

    Resources

    We rated brands based on how many educational and investing resources are available. This includes Morningstar reports, market trends, how-to guides and more.

    Customer support

    When you run into trouble with your stock investment account, how can you get in touch for support? We award brands with more channels of support with higher scores in this aspect.

    Customer satisfaction

    We leveraged J.D. Power’s 2020 U.S. Self-Directed Investor Satisfaction Study to rate each brand’s customer satisfaction. As always, a higher customer satisfaction rating means a higher SimpleScore.