Why choose TD Ameritrade
TD Ameritrade is one of the biggest stockbrokers in the US with a wide range of asset classes and commission-free stock trading.
Its trading platform - Thinkorswim - is exceptional, account opening is user-friendly, and no minimum deposit is required.
Be aware, though, that TD Ameritrade is only available in a few countries outside the US, and you can only trade on US markets.
TD Ameritrade has been acquired by US peer Charles Schwab. Existing TD clients are being migrated to Charles Schwab, with the process scheduled to be fully completed in 2024. In most cases, it makes sense to open a new account at Schwab, since most of TD Ameritrade's top features (including Thinkorswim) are now available at Schwab. However, you can still open a new account at TD, for example if you're interested in trading futures and forex products, or using portfolio margin, as these will be available at Schwab only in early 2024. Read our Charles Schwab review.
- Low trading fees (free stock and ETF trading)
- Superb desktop trading platform
- Great customer support
Fees
- Low trading fees
- Low non-trading fees
- Free stocks and ETFs
We compared TD Ameritrade's fees with two similar brokers we selected, E*TRADE and Charles Schwab. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of TD Ameritrade alternatives.
Commission-free stock and ETFs
It’s extremely great as TD Ameritrade has commission-free US stock trading.
Broker | US stock |
---|---|
TD Ameritrade | $0.0 |
E*TRADE | $0.0 |
Charles Schwab | $0.0 |
High margin rates
TD Ameritrade USD margin rate fees are higher than the industry average. USD margin rate fees are calculated as follows: Base rate + tiered markup. Markup under $10,000: +1.25%
Broker | USD margin rate |
---|---|
TD Ameritrade | 14.8% |
E*TRADE | 14.2% |
Charles Schwab | 13.6% |
Low options commission
TD Ameritrade US stock index options fees are about half of the industry average. US stock index options fees are calculated as follows: $0.65 per contract
Broker | US stock index options |
---|---|
TD Ameritrade | $6.5 |
E*TRADE | $6.5 |
Charles Schwab | $6.5 |
Fees charged by TD for options trading are similar to those of its competitors: stock index options commission for 10 contracts is $6.5. The options fees are based on the number of traded options contracts.
No inactivity fee, average withdrawal fee
The broker does not charge an inactivity fee, deposits are free of charge and withdrawal is also free if you use an ACH transfer.
Broker | Inactivity fee | Withdrawal fee |
---|---|---|
TD Ameritrade | $0 | |
E*TRADE | $0 | |
Charles Schwab | $0 |
Withdrawal via wire transfer, the only option available to non-US clients, costs $25.
Other commissions and fees
High mutual fund commission: trading mutual funds involves the following charges - $49.95 per transaction, although there are also ca. 4,000 free funds.
High futures fees: US index futures fees are as follows - $2.25 fee per contract plus exchange or regulatory fee.
Low FX fees: All fees are built into the spread, so there is no separate commission charged. For example, the EUR/USD spread is 1.4.
Low bond commission: US treasury bonds come with the following charges - $0 for Treasury bonds, other bonds are marketed on a net yield basis. UITs are subject to a placement fee from issuer..
Broker | Mutual fund | US micro e-mini stock index futures |
---|---|---|
TD Ameritrade | $50.0 | $22.5 |
E*TRADE | $20.0 | $15.0 |
Charles Schwab | $25.0 | $22.5 |
Safety
- Majority of clients belong to a top-tier financial authority
- High level of investor protection
- Banking background
Deposit and withdrawal
- Free withdrawal
- No deposit fee
- User-friendly
Account opening
- Fully digital
- No minimum deposit
- Many account types
Mobile app
- User-friendly
- Two-step (safer) login
- Good variety of order types
Desktop platform
- User-friendly
- Good customizability (for charts, workspace)
- Good variety of order types
- Trading support functions
- Great learning materials