TD Ameritrade Broker Review

Is TD Ameritrade Safe?

TD Ameritrade is considered safe because it has a long track record, is listed on a stock exchange, has a banking background, and is overseen by top-tier regulators.

Regulation: Founded in 1975, TD is one of the biggest US-based stockbrokers and is regulated by top-tier authorities like the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Commodity Futures Trading Commission (CFTC).

Safety Features: Regulation requires TD Ameritrade to provide negative balance protection for all clients and to keep its operational funds segregated from client accounts. It also prevents TD from offering leverage higher than 50:1 on Forex majors (although TD Ameritrade only offers leverage of up to 15:1). Traders should also be aware that if they want to place more than four round-trip orders within five business days (as in pattern day trading), they will have to maintain an account balance of at least 25,000 USD – but this is not the case for Forex or Futures trading. 

Even though TD operates several legal entities, all customers are covered by the US investor protection scheme SIPC. The SIPC protection scheme protects against the loss of cash and securities in case the broker is liquidated up to a maximum of 500,000 USD per trader. 

Company Details:

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We confirmed each of the licences and regulations on the regulator’s online register. See below for details of TD Ameritrade’s regulated entity:

TD Ameritrade’s Financial Instruments

TD Ameritrade offers trading on over 10,000 instruments, including over 70 Forex pairs, which is excellent compared to other similar brokers.

Although TD Ameritrade provides such an impressive range of assets for trading, these are not all published on the website. 

The broker specializes in equity, ETF, and mutual fund trading and has recently added cryptocurrencies to the list. Its focus is mainly on the US market, but this should not be a problem for American traders. 

Leverage: While standard leverage is 1:2, traders receive leverage of up to 1:15 in the margin trading account. This is significantly below the leverage found at other international brokers, which under CFTC regulation can offer leverage of up to 1:50 on major pairs, placing traders at a distinct disadvantage.

Forex pairs: TD Ameritrade offers 73 Forex pairs for trading at 1:15 leverage, a larger range than other similar brokers. 

TD Ameritrade’s Account Types

TD Ameritrade offers five different account types with several options, catering to most American traders’ trading and investing needs. 

Trading Fees: TD Ameritrade’s account has no minimum deposit requirement. There are no commissions, and the broker fees are included in the variable spreads, which start at 1.2 pips (EUR/USD). These fees are slightly higher than those charged at other similar brokers, and unfortunately, TD Ameritrade does not publish the spreads on its website.

Traders should also be aware that margin accounts at TD Ameritrade require a 2,000 USD account minimum. Cash accounts have no minimum requirement. If you have less than 2,000 USD, you won’t have the option of setting up a margin account.

Additionally, traders with margin accounts must comply with the pattern day trading (PDT) rule. That means traders with margin accounts cannot execute more than four-day trades in a rolling five-day period unless they maintain an account balance of 25,000 USD. Note this is only for stock trading – not for Futures and Forex trading.

Account Trading Costs:

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Deposits and Withdrawals

Like other US-based brokers, the deposit and withdrawal options remain limited to bank-related transactions. The only options are bank wires, electronic bank deposits (ACH), or checks. 

In line with Anti-Money Laundering policies, deposits and withdrawals at Interactive Brokers cannot be made to/from third-party accounts, and all non-profit funds are returned to the original deposit source.

Accepted Currencies: When we opened our account at TD Ameritrade, we were only given the choice of opening an account based in USD. While this is limited compared to other brokers, most financial instruments have USD as the base currency, so traders will generally not be charged currency conversion fees on deposits or withdrawals.

Non-trading Fees: The non-trading fees at TD are lower than other similar brokers. The broker does not charge an inactivity fee, deposits are free of charge, and withdrawals are also free if you use an ACH transfer. However, withdrawals via wire transfer cost 25 USD.

Deposits and Withdrawals: TD Ameritrade’s deposits are free of charge, but neither credit/debit cards nor electronic wallets are available. There is no minimum deposit except for 50 USD via ACH. Account transfers from another broker or deposits via physical stock certificates are also available. Additionally, withdrawals are processed within 48 hours but may take up to 5 days to reach your account, depending on your bank. 

We tested the ACH transfer, and it took 1 business day. On the other hand, a wire transfer can take several business days.

See below for more details:

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Overall, the lack of funding options and withdrawal methods remains a weakness at TD Ameritrade.

Mobile Trading

With two different mobile trading apps available, TD Ameritrade’s mobile support is excellent, but it does not support popular third-party providers like MT4 and MT5.

There are two mobile apps on offer at TD Ameritrade – the TD Ameritrade mobile app and the thinkorswim mobile app, that mirror the features of the standard and thinkorswim web platforms, respectively. 

The apps are available on both iOS and Android. We tested the iOS version of thinkorswim, because traders cannot trade Forex on TD Ameritrade Mobile.

Thinkorswim Mobile: We found the platform user-friendly with an intuitive home screen. It allows you to place orders, set price alerts, and view live prices. You can also set up news and market updates, manage your account, deposit and withdraw funds, view educational videos and market analysis materials, and contact customer support.  

We were particularly impressed by the number of technical indicators available, the customizability of the charts, and that it analyzes the risk of your positions. 

See a comparison of the two apps:

TD Ameritrade’s Other Trading Platforms

TD Ameritrade offers two in-house trading platforms – its standard web platform and the thinkorswim platform. This may be off-putting for traders who are used to industry-standard platforms like MT4 and MT5.

Having won many awards, TD Ameritrade has successfully built two trading platforms that are intuitive, powerful, and fast.

Many other brokers offer support for third-party platforms such as Metatrader 4 and Metatrader 5, which is an advantage for forex traders who want to take their own customized versions of the platform with them should they choose to migrate to another broker. 

Because traders cannot trade Forex on the standard platform, we tested the thinkorswim platform on a Mac OS system:

Thinkorswim Platform

The thinkorswim platform is highly customizable, so traders can adjust it to fit their trading styles. Clients can adjust their charts for size, color, study, and strategy and insert drawings. These charts can be saved, recalled, shared, and reprogrammed.

thinkorswim includes scanners, heat maps, access to extensive third-party research, and comes with a host of market data from the national and international markets. It also has a very strong community presence, and customers can visit TD Ameritrade’s online chat rooms and talk to other traders. The chatroom is used to share watch lists, charts, and strategies, and streaming CNBC, Benzinga, and Dow Jones News are also included. 

We also enjoyed the ThinkBack feature that allows traders to backtest strategies and access prices for historical options.

Trading Platform Comparison:

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Broker

Platform Choice

Copy Trading

Platforms

TD Ameritrade

4/ 5

Yes

WebTrader, thinkorswim

IG

4.5/ 5

Yes

MT4, L2 Dealer, ProRealTime

Interactive Brokers

4/ 5

Yes

Clientportal, Trader Workstation, IBKRmobile

Opening an Account at TD Ameritrade

We found it slightly complicated to open an account at TD Ameritrade. Once registration is complete, verification takes around two days, which is longer than other similar brokers. 

All American residents are eligible to open an account at TD Ameritrade.

There are many TD Ameritrade account types to choose from, ranging from individual to savings accounts, such as Roth IRA. All account types are displayed once you click on the ‘Open New Account’ button. For this review, we decided to open an individual account:

How to open an account at TD Ameritrade:

1. New traders must click on the “Open New Account” button at the top of the page, where they will be directed to register an account.    
   
2. Traders will then have to answer some questions to find the trading account that suits their trading needs:
   
   
3. Next, traders must provide contact details, including their name, email address, physical address, and telephone number.
4. Traders will then be directed to fill in their personal information, including date of birth, identification, employment status, and trading preferences.
5. TD Ameritrade requires clients to fill in their financial details, including annual income, net worth, and source of funds. 
6. The next step involves reviewing and confirming your details.
7. Traders then must confirm that they have read TD Ameritrade’s risk disclosure, customer agreement, and business terms. 
8. Once this step is complete, traders must send support documentation to complete the KYC process. These include:
   1. Proof of Identification – TD Ameritrade accepts all government-issued identification documents such as passports, national ID cards, driving licenses, or other government-issued IDs. 
   2. Proof of Address – Proof of residence/address document must be issued in the account holder’s name within the last 6 months. It must contain a trader’s full name, current residential address, issue date, and issuing authority. 

The online application took roughly 20 minutes, and our account was ready for trading within three days, which is longer than the industry average. 

TD Ameritrade’s Research and Tools

As one would expect, TD Ameritrade comes loaded with a wealth of both in-house and third-party research amenities. 

News: TD Ameritrade offers news for free to all visitors to the website, including live-streaming news from the TD Ameritrade Network, Dow Jones, Benzinga, Midnight Trader, MarketWatch, numerous press releases, TradersAusio, CNBC Video, Benzinga Audio Squawk, Economy calendar data, and Wall Street Horizons. It also provides access to Wall Street, Barrons, and Yahoo Finance. It also provides third-party research curated by Morningstar and Thomson Reuters, among others. 

Market Edge: Suited for investors of all levels, Market Edge offers information and technical analysis of the markets to help traders evaluate trading strategies for different market conditions. Traders should be aware that this is available for a monthly fee of 20 USD.

Tools: It offers a range of tools and calculators, including an Income Estimator, a Retirement Calculator, a Portfolio Planner, and a Contribution and Eligibility Calculator.

Trading Idea Generators: TD Ameritrade offers a plethora of market highlights and analyst reports from the Dow Jones, Credit Suisse, and the Center for Financial Research and Analysis. The library provides research on industries, companies, and funds to create new trading ideas. 

It also provides various screeners, including stock screeners, options screeners, and Fixed Income screeners.

Research Comparison:

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Broker

Autochartist

Trading Central

Trading View

TD Ameritrade

No

No

No

IG

Yes

No

No

Interactive Brokers

Yes

Yes

No

TD Ameritrade’s Education

TD Ameritrade provides some of the best educational materials available at any broker. 

TD Ameritrade provides multiple educational resources in many different formats, including an online digital magazine “ticker-tape,” instructional videos, daily streaming live market commentary on the TD Ameritrade Network, in-person instruction, and virtual learning experiences via webcasts and courses. We were also pleased to find that it offers specific educational resources on the various asset classes, including Forex.

Education: TD Ameritrade provides an extensive library of content organized for ease of use and curated by topic, level, goals, and objectives. Clients can access on-demand videos, tutorials, one-on-one coaching, events, and more. 

Webcasts:  TD Ameritrade offers free trading webcasts offered by third-party financial services companies and research providers across the globe.

Demo Account: When you set up your account, you are given the option to open a Paper Trading Account or a demo account. The Paper Account comes loaded with USD 100,000 in virtual money, where you can experiment with the platforms and trade under real market conditions.

Education Comparison:

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Broker

Beginner Course

Advanced Course

TD Ameritrade

Yes

Yes

IG

Yes

Yes

Interactive Brokers

Yes

Yes

TD Ameritrade’s Customer Support

Available 24/7, TD Ameritrade’s customer support is excellent compared to other large international brokers.

Clients support is available by phone – (866) 839-1100, email, live chat (via the website or through the platforms), and Facebook Messenger, 24hrs a day, five days a week. 

For the purposes of the review, we tested the live chat service. We found the live chat agents were polite and responsive and found that they are well trained with an in-depth knowledge of both trading platforms and accounts.

TD Ameritrade’s Safety and Industry Recognition

Regulation: Founded in 1975,  TD Ameritrade is regulated by 3 top-tier regulators, including the MAS of Singapore, the Securities and Futures Commission of Hong Kong, and the CFTC of America. See below for more details:

• TD Ameritrade Singapore Pte. Ltd. (Reg. No. 200902152D) is licensed by the Monetary Authority of Singapore.
• TD Ameritrade Hong Kong Ltd. is registered with the Securities and Futures Commission (CE number BJO462).
• TD Ameritrade, Inc. is a member FINRA/SIPC, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. The IARD/CRD number for TD Ameritrade Investment Management, LLC is 111514. 

Industry Recognition

TD Ameritrade has won many awards over the years for its platforms and tools, customer service, education, beginner-suitability, and mobile trading apps. 

Evaluation Method

We value transparency and openness in the way we review the partners. To bring transparency to the forefront, we have published our review process. Central to that process is the evaluation of the broker’s reliability, platform offering, and the trading conditions offered to clients, summarised in this review. Each one of these is graded on 200+ metrics across seven areas of interest, and an overall score is calculated and assigned to the broker according to the diagram below:

TD Ameritrade’s Risk Statement

Trading Forex is risky, and each broker must detail how risky the trading of Forex CFDs is to clients. TD Ameritrade would like you to know that: Forex trading involves leverage, carries a high level of risk, and, yup, you guessed it—is not suitable for all investors. 

Final Word

Founded in 1975, TD Ameritrade is a large U.S. broker that offers a large range of financial assets, including over 70 Forex pairs. One of its best features is its award-winning thinkorswim platform, available on both Android and iOS devices that features excellent charting capabilities and numerous indicators. It also offers an astounding library of research materials, calculators, and trading tools alongside an excellent education section. 

Trading fees are around the industry average, with spreads that start at 1.2 pips on the EUR/USD, but no commissions for Forex trading. Traders may be disappointed that a limited number of funding methods are available and that high fees are charged for withdrawals via bank wire. 

Editorial Team

 

Chris Cammack
Head of Content

Chris joined the company in 2019 after ten years experience in research, editorial and design for political and financial publications. His background has given him a deep knowledge of international financial markets and the geopolitics that affects them. Chris has a keen eye for editing and a voracious appetite for financial and political current affairs. He ensures that our content across all sites meets the standards of quality and transparency that our readers expect.

 

Alison Heyerdahl
Senior Financial Writer

Alison joined the team as a writer in 2021. She has a medical degree with a focus on physiotherapy and a bachelor’s in psychology. However, her interest in forex trading and her love for writing led her to switch careers, and she now has over eight years experience in research and content development. She has tested and reviewed 100+ brokers and has a great understanding of the Forex trading world.

 

Ida Hermansen
Financial Writer

Ida joined our team as a financial writer in 2023. She has a degree in Digital Marketing and a background in content writing and SEO. In addition to her marketing and writing skills, Ida also has an interest in cryptocurrencies and blockchain networks. Her interest in crypto trading led to a wider fascination with Forex technical analysis and price movement. She continues to develop her skills and knowledge in Forex trading and keeps a close eye on which Forex brokers offer the best trading environments for new traders.