TD Ameritrade - Is it a Good Broker or Scam? Philippine Trader Review 2022

Because forex trading is not strictly legal in the Philippines, you are unlikely to find a local broker who will allow you to trade currencies. Despite this, you may be able to trade forex with an international online broker based outside of the Philippines.

TD Ameritrade is an example of an international broker you might wanna know.

What is TD Ameritrade？ Is it a good broker to invest in？

TD Ameritrade is one of the industry's best online brokerages, earning it the title of best brokerage for beginners in our listings. The award-winning thinkorswim trading platform is a favorite among active traders, providing a powerful yet user-friendly tool suitable for both professionals and novices. TD Ameritrade's extensive educational resources and excellent customer service contribute to its ranking as one of the best online brokerages.

About TD Ameritrade

TD Ameritrade was founded in 1975 by Joe Ricketts as First Omaha Securities, Inc. Over nearly four decades, the brokerage has evolved into TD Ameritrade through numerous acquisitions and an IPO in March 1997. In the 1990s, it was a pioneer of online trading and one of the first firms to offer discounted commissions.

Charles Schwab Corp. purchased TD Ameritrade in 2020. The companies intend to finish integrating their online brokerage services by 2023. Schwab and TD Ameritrade will continue to operate as separate broker-dealers until then.

Today, TD Ameritrade provides investing and trading services to 11 million clients with assets totaling more than $1 trillion. In addition, the firm serves as the custodian for over 6,000 independent registered investment advisors. TD Ameritrade clients execute approximately 500,000 trades per day.

PROS

• Outstanding educational resources

• Thinkorswim Pro trading platform is excellent.

• Trading specialists with experience in a variety of asset classes can assist you.

• Customer service that is both skilled and efficient

• For in-person assistance, there are branch offices located throughout the United States.

CONS

• Prohibitively expensive margin rates

• Some fees are higher than those of competitors.

• There are no fractional shares.

• Cryptocurrency is largely unavailable—only Bitcoin futures are available.

What are the ranges that TD Ameritrade is offering？

TD Ameritrade clients can trade a wide variety of assets on the web platform as well as mobile apps. This includes exchange-traded funds (ETFs), stocks, options, futures, and cryptocurrency. One notable limitation is that TD does not offer fractional shares or international bonds, and the mobile app does not support fixed-income purchases. Beyond that, investors using TD Ameritrade can access:

• Stocks long and short.

• Mutual funds (11,949 total; 4,259 no transaction fee; 5,992 carry a front or back end load).

• Bonds: corporate, municipal, Treasury, and CDs.

• Futures/commodities.

• Single and multi-leg option contracts.

• Bitcoin futures.

• Foreign exchange (73 currency pairs).

• OTCBB (penny stocks).

• Robo-advisor integrated into the online brokerage platform.

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Wide ranges of Account Types

TD Ameritrade is also very accommodating in terms of the types of accounts that can be opened. You will be able to open custodial accounts, 529 accounts, education savings accounts, trusts, and partnership accounts in addition to standard types such as individual and joint taxable accounts. Those looking for retirement accounts will not be disappointed, as the standard traditional and Roth IRA accounts, as well as pension and profit-sharing accounts and business retirement accounts: SEP-IRA, SIMPLE IRA, and the solo 401(k), are all available (k).

TD Ameritrade has a wide variety of types, so you're likely to find what you're looking for.

TD Ameritrade Commission and Fees

TD Ameritrade, like the rest of its major competitors, charges no trading commissions for online purchases of stocks and exchange-traded funds (ETFs). The brokerage does charge commissions and fees that are broadly comparable to other services.

• $0.65 per contract for options

• Futures and options on futures: $2.25 per trade

• OTC stock trades cost $6.95 per transaction.

• Broker-assisted trades incur a fee of $25 per transaction.

TD Ameritrade offers 13,000 mutual funds, nearly 4,000 of which are no-load, no-transaction-fee funds. This fund selection compares favorably to competing online brokers. Just keep in mind that TD Ameritrade, like some of its competitors, charges a $49.99 fee if you sell most no-fee, no-load funds within six months of purchase. Certain competitors, such as E*TRADE, may offer shorter holding periods, which may appeal to certain types of investors.

TD Ameritrade has one of the highest margin rates among the online brokers we looked at. The fee for margin account balances less than $10,000 is 9.50 percent, and the fee for balances between $10,000 and $25,000 is 9.25 percent. Borrowers who borrow more than $1 million are eligible for the lowest margin rates (6.75 percent). In comparison, Interactive Brokers charges a flat rate of 2.60 percent for all margin borrowing.

In terms of service fees, TD Ameritrade falls somewhere in the middle. Outgoing wire transfers are $25, full account transfers are $75, and paper statements are $2 per month. There are no fees for inactivity or paper confirmation statements.

Alternatives to TD Ameritrade

• Fidelity - is a low-cost brokerage account that offers a variety of investment options and unlimited trades.

• USAA - is an online trading platform that allows you to trade stocks, mutual funds, bonds, options, exchange-traded funds (ETFs), and CDs.

• E-Trade - enables you to trade stocks online and assists you in developing a strong stock portfolio.

• Charles Schwab - is a US investing platform that enables you to make wise investments in the US economy.

• Interactive Brokers - is a US-based electronic broker that offers professional traders and investors cutting-edge technology and flexible account options.

• CommSec - is Australia's leading online broker, offering online share trading and investing.

• Questrade - It offers low commissions, a variety of trading options, cutting-edge trading platforms, risk-free practice accounts, and much more.

• Merrill Edge - It has streamlined account management, real-time transfers, anytime and anywhere access, one-on-one advice, and preferred pricing.

• Scottrade - It offers a variety of investment products, such as IRAs, stocks, ETFs, options trading, mutual funds, and others.

• RobinHood - It provides secure account protection, quick execution, real-time market data, smart notifications, and other benefits.

• TradeStation - Trading software, a web trading platform, options analysis, automated trading, strategy back-testing, and chart analysis are all included.

• Firstrade - Stocks, options, mutual funds, ETFs, and fixed income are among the products and services available.

• Ally Invest - All stock traders benefit from low pricing and monthly fees.

• IG.com - Flexible execution, international range, smart pricing sourcing, and collateral are all advantages of using this service.

• TradeKing - It includes a variety of trading tools, such as an options pricing calculator, a probability calculator, and a profit and loss calculator.

Check out WikiFX Brokers Comparison Page to know what Broker suits you.

Trading Platforms

TD Ameritrade provides a straightforward web-based trading interface with a mobile app, as well as the highly regarded thinkorswim trading platform, which is available in desktop, web-based, and mobile app iterations.

Users can trade stocks, bonds, ETFs, mutual funds, and options on the web platform. It's very user-friendly, with extras like streaming news, third-party research, and trading watch lists.

Trading Platform & Mobile App Thinkorswim

The trading platform thinkorswim was created with investment professionals in mind, and it shows. In addition to all of the asset classes available on the web platform, TD Ameritrade customers have access to more advanced asset classes such as futures trading, forex, and futures options. Among the customizable features are:

• Watch lists and alerts

• Portfolio creator

• Journal of Commerce

• The mapping of heat

• Assisting AI

• Trading in paper

• Screeners

• Level II quotations

• Trading after hours

• Advanced tools for dynamic scans and technical indicators that can be customized

• Orders for complex options with rolling scans

Apps for TD Ameritrade

Investors who are glued to their phones will appreciate TD Ameritrade's suite of mobile apps. The TD Ameritrade Mobile and thinkorswim apps perform similarly to the desktop platform and received near-perfect ratings in our survey.

The TD Ameritrade mobile app includes the following features:

• Portfolio management

• Market information, real-time quotes, and price alerts

• Trading in stocks, ETFs, and options

• Level II quotations

• Videos on stocks, options, and investing strategies are included in the education.

• Integration of social media

• Third-party research, analyst reports, and social signals are all sources of information.

The thinkorswim app is ideal for serious traders who need to track their options, futures, and day trades. Conditional orders and multi-leg options trades will appeal to advanced investors. The mobile app includes the majority of the charting and analytical features. Investors can communicate with a live trading specialist, watch videos from the TD Ameritrade Network, and participate in chat rooms with other traders.

Customer Service

• TD Ameritrade has a telephone helpline that is available 24 hours a day, seven days a week, with an average hold time of 43 seconds.

• Clients can get trading and account support by phone, email, website, trading platform, Twitter, and Meta.

• Ask Ted, the virtual client service agent offers automated assistance by answering clients' questions and directing them to content on the site.

• TD Ameritrade also offers chat support through thinkorswim mobile, allowing customers to communicate with a support representative without leaving the app.

• Clients of TD Ameritrade can speak with a live broker, but fees may apply. Many of the representatives working on TD's trading desk and answering client questions were either former professional floor traders and market makers or had been trained by them.

• Clients can communicate with TD Ameritrade financial advisors.

• Chatbox functionality is supported by Apple Business Chat, Meta Messenger, Twitter Direct Messages, and WeChat in Asia.

Frequently Asked Questions

How to Open a TD Ameritrade Account

1. Concentrate on what you expect from a brokerage. Begin by determining your investment requirements and objectives. Identifying the tools and information you want access to, as well as the level of guidance you require, can help you narrow down your options and determine if TD Ameritrade is a good fit for your investing needs.

2. Do your homework. Spend time researching fees and costs, investments, tools, and resources. What is the quality of their customer service, and do they have an investing app？ It's also critical to understand what kinds of investments are available.

3. Create a new account online. Online, you can open a TD Ameritrade brokerage account. Before you begin, make sure you have your Social Security number or ITIN on hand. You'll need a passport, visa, or foreign ID if you're not a US citizen. Finally, make a note of your employer's address and phone number.

You can transfer funds from another brokerage account online. You can trade the same day your account is opened and funded. TD Ameritrade has over 175 physical locations in the United States. If you have any questions, you can get help 24 hours a day, 7 days a week via chat or phone.

What is the minimum deposit to open a TD Ameritrade account？

There is no minimum deposit required to open an account with TD Ameritrade. To be considered for certain option privileges and margin, which is when you borrow money from a broker to buy securities such as stocks, bonds, options, and index funds, you must have at least $2,000 in your account.

Is it possible to lose money with TD Ameritrade？

The Securities Investor Protection Company is a member of TD Ameritrade (SIPC). This means that as an account holder, your securities are protected up to $500,000, including a cash claim of $250,000.

However, one's securities are not protected against fraud or market fluctuations. When you invest, you assume some risk, regardless of which brokerage you use. Your securities may lose value, causing you to lose money.

What is the cost of using TD Ameritrade？

There are no commission fees for online trades of stocks, bonds, and exchange-traded funds (ETFs) that are listed on a U.S. exchange. There is a $0.65 fee per contract for options trades. There is a $6.95 commission fee for over-the-counter (OTC) stocks, which include stocks that are not listed on a U.S. exchange.

Is there a fee to open an account with TD Ameritrade？

When you open an account, you can fund it with an electronic bank deposit, a wire transfer, a check, or by transferring funds from another fund. Depositing funds into your TD Ameritrade account is free of charge.

Can I begin trading with just $100？

You can start investing with $100 because there is no minimum to open an account.

Is there a fee with TD Ameritrade？

To trade stocks, options, or ETFs, TD Ameritrade does not charge a commission. There are no inactivity or annual fees, and there is no fee for making partial transfers out of your account. If you want to transfer your entire balance, you'll have to pay $75. Furthermore, options trades incur a per-contract fee of $0.65, which is only charged on options trades and is a standard fee charged by brokers.

Keep in mind that some investments, such as mutual funds and ETFs, have internal fees known as expense ratios that are charged by the funds themselves rather than TD Ameritrade.

How does one purchase stock on TD Ameritrade？

TD Ameritrade provides two trading platforms as well as a mobile app for stock purchases. Placing a stock order on the company's website is the simplest option for new investors; once you've funded an account, simply search for the stock's ticker symbol and fill out an order ticket with your trade request. Advanced stock traders will prefer the thinkorswim desktop platform, which is robust and packed with tools for analyzing and planning trades.

On TD Ameritrade, how do you short a stock？

To short stocks on TD Ameritrade or any other broker, you must have a margin account funded with at least $2,000 in cash or eligible securities. Margin accounts at TD Ameritrade also require you to maintain at least 30% of your account value as equity at all times. You can begin shorting stocks once your account is properly funded.

Is TD Ameritrade a free service？

TD Ameritrade offers commission-free trading of stocks, options, and ETFs, as well as no annual or inactivity fees, so you can open an account with the broker for free.

How does TD Ameritrade generate revenue？

TD Ameritrade, like other brokers that don't charge commissions on stock or ETF trades, makes money from products that do. Fees are charged for futures and forex trades, Robo-advisor and financial advisory services, and broker-assisted trades. In addition, the company earns interest on uninvested cash balances and may receive payment for order flow, which occurs when trades are sent to a third-party market maker in exchange for a small fee pocketed by the broker.

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