TD Ameritrade Broker Review

by OTC Financial | Last Updated: 1 month ago
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Even if you have not invested in stocks and bonds, it may be worth investing in a brokerage firm like TD Ameritrade to make the most of your money.

While consumers are offered a prospectus before buying stocks, there is no guarantee that a stock will increase or decrease in value.

TD Ameritrade is a safe, legitimate, and online leading investment firm that offers a range of services, including the transaction of purchases, sales, and stocks. Users may also invest their money in reserves like OTCs, mutual funds, and futures. While TD Ameritrade is renowned and has 5-star ratings across multiple platforms, some negative aspects also exist, such as the minimum investment requirement of $2,500.00.

You may now be wondering if TD Ameritrade is good for beginners, whether it will suit your specific needs as a consumer, and whether there are any hidden fees when trading stocks.

Read on for more information and step-by-step processes concerning the creation of an account and the downloading of TD Ameritrade’s various mobile and desktop apps.

How Do You Open A TD Ameritrade Account?

To open a new TD Ameritrade account, you must first visit TDAmeritrade.com.

In the upper right-hand corner of the site, a link will prompt you to create a new account.

Upon being entered, the following webpage will ask you to select an account type that best suits you.

There are currently over 40 account types that may be chosen. Some common account types include:

  • Individual AccountJoint Tenants WROS (with rights of survivorship)
  • Roth IRA
  • Traditional IRA
  • UTMA/UGMA
  • Rollover IRA

Once an account type is highlighted, information about that account will be given so that you may verify your choice.

Many account types will allow you to complete your application online, but in some cases, you must correspond through the mail by having your forms downloaded, emailed, or sent to your address.

Depending on which account type you entered, you will be asked to submit personal and financial information, such as your employer’s name and address and your social security number.

Then, you must agree to TD Ameritrade’s client agreement before you finally configure your account user ID and security settings.

How Much Does It Cost To Open An Account?

It is free to open an account on TD Ameritrade.

However, for some special promotional offers, there are minimum monetary requirements.

At TD Ameritrade, the following funding minimums are required when completing transactions:

  • The electronic funding minimum is $50.00
  • Accounts with margin or options privileges require $2,000.00

In addition, funds and checks require clearance before a trade. This usually takes 5 to 8 business days from when you first post them to your account.

How To Download The TD Ameritrade App

The following apps from TD Ameritrade are compatible with Apple (the App Store), PC, and the Google Play Store:

  • The TD Ameritrade mobile app
  • The Thinkorswim mobile app
  • The Thinkorswim desktop app

To download the TD Ameritrade or Thinkorswim mobile apps, you may follow these instructions:

  • Open the App Store or Google Play Store.
  • Enter the keywords within the appropriate fields: There will be a search area at the top of the screen within the Play Store. This search bar can be found within the App Store by clicking its icon at the bottom right-hand corner of the screen.
  • Click the highlighted download button: Your app will begin installing on your phone.

Furthermore, to download the Thinkorswim desktop app, you must visit the Thinkorswim Desktop Section of TDAmeritrade.com (under the Thinkorswim Trading Platforms tab within the left-hand navigation column of the site’s homepage).

The site will prompt you to download the 64-bit hardware installation of the app onto your computer.

Costs And Features Of Software And Platforms

 TD Ameritrade’s mobile app offers a variety of features that its competitors do not.

According to the Comparing Platforms section of TDAmeritrade.com, the following benefits may be found within each of the following applications:

  • Classic web platform: On the traditional web platform, you can manage your user account and portfolio settings.
  • Next-gen web platform: You can review funds, research investments, or place trades on various devices.
  • TD Ameritrade mobile app: With the TD Ameritrade mobile app, you can manage your accounts and investments just like the classic and next-gen web platforms.
  • Thinkorswim web app: From any web browser, and on the Thinkorswim app, you can trade securities and derivatives, preconfigure trades, and chart analyses.
  • Thinkorswim desktop app: With increased tools, you can generate new ideas, test strategies, and perform trades.
  • Thinkorswim mobile app: Just as with the Thinkorswim desktop app, you can analyze your market and make trades.

It is also worth noting that TD Ameritrade’s mobile app is similar to other competing companies’ apps, like Fidelity’s Active Trader Pro.

Still, according to customer reviews on the Google Play Store and review site Nerd Wallet, Fidelity ranks slightly higher.

Commission And Trading Fees For Stocks

Sometimes brokerages charge additional fees when providing their clients with services. According to Investopedia.com, brokerage fees may be charged for purchases, sales, consultations, negotiations, and delivery services.

At TD Ameritrade, you can engage in each of these transactions. The following table denotes TD Ameritrade’s major stock options and the fees associated with each, according to the pricing page of their website:

 OnlineInteractive Voice Response (IVR) Phone SystemBroker-AssistedNo-LoadFutures and Options on Futures
Stocks0525N/AN/A
ETFs0525N/AN/A
Mutual FundsN/AN/AN/AUp to $49.95 or $74.95 for BuysN/A
Options$0.65 Fee Per Contract$5.00 and a $0.65 Fee Per Contract$25.00 and a $0.65 Fee Per ContractN/AN/A
FuturesN/AN/AN/AN/A$2.25 Per Contract, Plus Exchange and Regulatory Fees

$2.25 Per Contract, Plus Exchange and Regulatory Fees

At TD Ameritrade, there are typically no commissions, and there are no platform fees, data fees, or trade minimums.

Like Merrill Edge and Principle, other top brokerage competitors regularly provide similar benefits.

Furthermore, the minimum cost of purchasing an investment at TD Ameritrade is $2,500.00, five times the amount of most other brokerage firms.

However, according to a TD Ameritrade customer’s review highlighted within this 2021 Traders Union YouTube Video, the low portfolio management fees offset any frustration regarding high investment costs.

Does TD Ameritrade Have Hidden Fees?

Some other investment companies, like Fidelity, may charge fewer fees than TD Ameritrade, as Joey Wakeman, in his 2020 YouTube Video, discusses upon comparing the two firms.

He also comments that investors trading in fractional shares will prefer Fidelity. Despite this, Wakeman asserts that TD Ameritrade’s website is easier to navigate than Fidelity’s.

With this in mind, TD Ameritrade still contains some fees that should be carefully reviewed before investing.

For instance, the following fees apply to all owners of accounts, as is described on the Standard Retail Pricing: Commissions and Fees webpage that new users are linked to at the start of the account creation process on TDAmeritrade.com:

  • Service fees: Service fees include $38.00 for reorganization and a minimum charge of $500.00 for certificate withdrawals. There are also fees for monthly and quarterly statements and trade confirmations ranging from $2.00 to $5.00, depending on account credentials. In addition, transfers range from $25 to $75.
  • Exception fees: A wide variety of exception fees exist, with the costliest generally being the $250.00 alternative investments (AI) custody fees and restricted security processing fees, and the least expensive being foreign security fees, which start at $15.

For more detailed information regarding regulatory fees, ranging from base charges as low as $0.00000082 multiplied by the value per asset-backed security trade to fees as high as 0.009946 per options contract, you can refer to the Standard Retail Pricing: Commissions and Fees document.

While many of these fees may seem small, most will grow along with your success if you invest well and in shares that increase in value.

Final Thoughts

According to Nerd Wallet’s 2022 Review, TD Ameritrade is an excellent company for beginner, advanced, and fund investors.

Nerd Wallet also notes that TD Ameritrade provides extensive investor education and advice through its various applications and services.

Although the brokerage offers no fractional shares, Nerd Wallet has given it a 5-star rating.

Furthermore, TD Ameritrade is considered a leading investment company among many due to the variety of services they offer and the ease of access (and functionality) of their apps.

By creating an account with TD Ameritrade, customer support may be contacted, and any questions answered.

However, it is best to consider the pros and cons of applying to different firms depending on your specific needs and preferences.

Which brokerage you choose and which stocks you invest in is entirely up to you.

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