Overview of TD Ameritrade
TD Ameritrade is one of the largest and most well-known online brokerage firms in the United States. The company was founded in 1975 and provides customers with a wide range of services offered within its retail and institutional platforms. TD Ameritrade has a variety of customer service options including live chat, email, phone, and fax, as well as other forms of contact such as social media. Furthermore, TD Ameritrade offers a comprehensive selection of trading tools and resources so that customers can make informed decisions when investing their money.
Benefits & Features
Some key benefits of using TD Ameritrade include:
| Low commissions: | With some trades costing just $6.95 per trade or less (including commission), you can save a significant amount of money when trading with TD Ameritrade. |
| Variety of investment options: | With over 11,000 mutual funds available and hundreds of stocks, ETFs, and bonds, TD Ameritrade gives you access to a large selection of investments. |
| 24/7 customer service: | TD Ameritrade offers reliable customer service around the clock so that you can get help whenever you need it. |
| Comprehensive education center: | Through the TD Ameritrade Learning Center, customers can view videos and webinars about investing as well as other topics related to personal finance. |
| Easy-to-use platform: | The website is easy to navigate and use, so even beginners can feel comfortable trading on this platform. |
Drawbacks & Limitations
Some drawbacks and limitations of TD Ameritrade include:
- Expensive fees – Although trading fees are low, some other services such as margin borrowing can be quite expensive.
- Limited investment options – With only 11,000 mutual funds available, investors may find that their choices are limited.
- High balance requirements – Some accounts require a minimum balance of $2,000 or more to be opened. This may be prohibitive for those with limited funds to invest.
- Lack of research tools – While the website does offer videos and webinars about investing, it lacks the depth and variety of research tools found on other websites.
- No international investments – TD Ameritrade does not offer the ability to invest in foreign markets.
Cost comparison of TD Ameritrade with other online brokerages
TD Ameritrade is generally seen as one of the more expensive online brokerages. Compared to other brokerages such as E*Trade and Fidelity, TD Ameritrade has higher fees for certain services such as margin borrowing, though trading fees are comparable. In addition, TD Ameritrade has a high balance requirement of $2,000 or more, while other brokerages may have no minimum balance at all.
How to open an account with TD Ameritrade?
Opening an account with TD Ameritrade is relatively simple. First, customers will need to visit the website and fill out a form that includes personal information such as name, address, and social security number. Customers will then be asked to choose the type of account they want to open (e.g. individual or joint). Finally, customers will need to make an initial deposit of at least $2,000 to fund the account.
Customer service experience with TD Ameritrade
TD Ameritrade's customer service experience is generally quite positive. Customers can choose to contact customer service by phone, email, live chat, or social media. The customer service representatives are knowledgeable and helpful, offering solutions to financial questions and providing guidance on how to make the most of TD Ameritrade’s services. Overall, TD Ameritrade provides customers with a variety of services that can help them make informed decisions when investing their money. With low commissions and fees, it can be an attractive option for those looking to get started in trading and investing. However, due to its high balance requirements and lack of research tools, it may not be the best choice for more experienced investors who require access to more sophisticated resources.
Here are some tips for traders who are just starting:
- Start small – Don’t invest too much money at the beginning, as you may suffer losses.
- Do your research – Educate yourself about different investment strategies and become familiar with the risks of trading
- Diversify – Investing in a variety of assets can help reduce risk and ensure that any losses are manageable.
- Follow your plan – Have a strategy in mind before investing and stick to it even when times are tough.
- Take advantage of resources – Make use of educational resources such as videos, webinars, and articles to stay informed about markets and investments.
- Monitor your investments – Constantly keep track of how your investments are performing so that you can adjust accordingly.
- Use stop losses – Setting up predetermined levels at which to close a position can help limit losses if the market moves against you.
- Talk to an advisor – If you’re unsure about making investments, consider consulting with a financial advisor who can provide expert advice on investing and trading.
With TD Ameritrade, investors have access to a wide range of resources that can help them make informed decisions when it comes to their money. Whether they’re just starting or looking for more advanced strategies, TD Ameritrade offers something for everyone. By following these tips, traders can ensure that their investment journey is smooth and successful.
Review Summary
| Pros | Cons |
|---|---|
| • Wide range of investment options | • Occasional glitches in the app |
| • Advanced trading tools | • Slow load times during periods of high market volatility |
| • Comprehensive research center | |
| • User-friendly mobile app | |
| • Competitive fees |
Summary
TD Ameritrade is an online broker offering a wide range of services to investors. Though it can be more expensive than other online brokerages, TD Ameritrade offers access to user-friendly tools and resources that can help traders make informed decisions. By utilizing its educational resources, setting up stop losses, diversifying portfolios, and consulting with advisors, traders with all levels of experience can make the most of their investments.