TD Ameritrade ReviewOpen an Account
Fantastic platforms thinkorswim and Trade Architect; rich research offering; large selection of commission-free ETFs; 24/7 customer service; easy-to-use website.
Short-term trading fee charged if a commission-free ETF is sold within 30 days of purchase; no customizable dashboard for mobile apps; mutual fund trades expensive at $49.99.
|Commissions & Fees|
|Platform & Tools|
|Ease of Use|
2014 Review Star Ratings
N/A - Not Applicable
N/R - Not Ranked in Top 10
N/A - Not Applicable
TD Ameritrade Review
When searching for a well-rounded broker, finding the right mix is no easy task. Trade costs, ease-of-use, trade platforms, research and customer service all are important to investors.
After using a TD Ameritrade account, you can't help but love the overall experience. The broker charges $9.99 per trade — a rate that can be up to two times more than some of the cheaper discount brokers — but the value and quality delivered is so superior that is easily justifies the higher price tag. Our TD Ameritrade review shows they are the real deal.
If having access to 24/7 customer support with email and phone is important to you, then TD Ameritrade has you covered. During testing, more than half of our emails were returned within an hour, and the phone system is quick to navigate and connects you to a rep almost instantaneously.
Live chat support is also offered, but only for clients seeking platform support while using thinkorswim, or for potential clients that navigate around the site long enough to trigger a live chat popup. Knowing how the web is evolving, I would like to see TD Ameritrade offer live chat support for all clients and potential clients.
The bottom line when it comes to support is that for a full-service broker, great customer service is expected, and TD Ameritrade delivers, regardless of the communication avenue.
Commissions & Fees
Having access to 24/7 customer support, advanced trade platforms, ample research, and more, unfortunately, isn't inexpensive. TD Ameritrade charges a flat rate of $9.99 per trade with options costing $9.99, plus $.75 per contract (for full commissions details, see the Commissions & Fees tab above).
Compared to other full-service brokers, TD Ameritrade is on par with ETRADE, but is more expensive than the rest, including Charles Schwab, Fidelity, and Scottrade. In fact, with margin costs taken into consideration, TD Ameritrade is the most expensive broker out of 17 total included in our 2014 Review.
|TD Ameritrade||Etrade||Charles Schwab||Fidelity||Scottrade|
|Mutual Funds ($)||$49.99||$19.99||$76.00||$49.95||$17.00|
Out of all the online brokers, TD Ameritrade does stand out by offering the second largest selection of commission-free ETFs (Charles Schwab offers the most with 121 total); 101 are available as I write this review. The only caveat is that, with TD Ameritrade, any commission-free ETF that is sold within 30 days of purchase is subject to a short-term trading fee of $19.99.
Like its biggest competitors ETRADE, Charles Schwab, and Fidelity, TD Ameritrade has a substantial research offering. When I pulled up a quote for Google (GOOG), there were eight different third-party research reports to choose from and read, which is impressive because any deep-discount broker rarely provides even one. The featured research report provider is ResearchTeam, which combines five research providers into one.
TD Ameritrade utilizes Thomson Reuters as its third-party data provider for fundamental analysis of individual equities and offers the full array of Morningstar research for all mutual funds. Morningstar is my favorite third-party research provider for mutual funds, and it is no surprise that TD Ameritrade, ETRADE, Charles Schwab, Fidelity, Scottrade, and other big names all agree.
I also enjoyed the basic on-site charting functionality. With 34 different technical indicators (volume, MACD, RSI, etc.) and easy-to-read, big charts, the experience is as clean as you'll find anywhere.
Making research effortless to conduct is a just one part of TD Ameritrade’s effort to make its website easy-to-use. The site-wide quote bar streams real-time quotes and includes SnapTicket, a quick trade extension that allows stock and option orders to be placed from any page on the site.
One of TD Ameritrade’s newer features, the dock, was released in 2013, allowing clients to have their own customizable sidebar that stays on screen the whole time they are logged in. Optional columns allow a variety of modules to be used (10 were available as of this review). While ideal for wide screen monitors, I found myself ignoring my custom dock in favor of the primary site navigation and tools. Perhaps it was because I use a 24” monitor — or that old habits are just hard to break.
Platforms & Tools
While there are many standout areas for TD Ameritrade, the broker's two platforms really are its bread and butter. The flagship platform, thinkorswim, used to be a standalone broker until TD Ameritrade acquired it in 2009. Thinkorswim is designed for advanced traders who want complete flexibility and depth.
Run as a desktop application, thinkorswim is so advanced that it is only rivaled by TradeStation. Having dozens of charts streaming real-time data is as easy as a few clicks, and even the most picky trader will be satisfied with the 200 plus technical studies available for each chart, not to mention that each study can be customized thereafter. The possible combinations are endless.
TD Ameritrade's thinkorswim is also home to a slew of advanced tools and functionality. Whether it be CNBC TV, alerts, heat mapping, earnings calendars, stock scanners, options screeners or back-testing, the rabbit hole goes as far as any trader's imagination will take them. One of the newest innovations is thinkorswim Sharing, which gives clients the ability to share workspaces, charts, studies, trade templates, and more via email or social media.
And if thinkorswim wasn't enough, TD Ameritrade also has a web-based platform, Trade Architect, which is designed with more casual investors in mind. The tools and functionality are purposely kept simple, and the design is clean with visual flare. Everything ran smoothly in my Chrome browser, bug-free, and I quickly became a fan of the platform wide streaming real-time quotes. I could only find one flaw: no virtual trading support.
From testing every broker, the streaming watch list functionality Trade Architect offers is my favorite. It isn't just the cleanness of the data — it also offers the flexibility, ease-of-use, and depth of data. The layout is completely customizable, and having access to visual data such as quote trends, trade trends, relative range, and the 52-week range was simply icing on the cake.
TD Ameritrade is one of those companies that just gets it. They understand their clients, the value of a high quality user experience, and they know what it takes to stay ahead of the competition.
Any investor, new or seasoned, will find TD Ameritrade to be a great fit for their needs. The only gripe with the broker is cost, but what you pay for is what you get, and the quality delivered by TD Ameritrade is, without a doubt, worth the extra few dollars per trade. TD Ameritrade is No. 1 in my book.
Compare TD Ameritrade to Key Competitors
Trade Commissions Breakdown
|$9.99||Flat-Fee Trade Plan*|
|N/A||Per-Share Trade Plan|
|$9.99||Options Base Trade Fee*|
|$19.99||Options Exercise Fee|
|$19.99||Options Assignment Fee|
|$49.99||Mutual Fund Trade Fee|
|$44.99||Broker Assisted Trade Fee|
|8.75%||$25,000.00 to $49,999.99|
|8.50%||$50,000.00 to $99,999.99|
|7.50%||$100,000.00 to $250,000.00|
|7.25%||$250,000.00 to $500,000.00|
|7.25%||$500,000.00 to $1,000,000.00|
|7.00%||$1,000,000.00 to $10,000,000.00|
|$0.00||Bond Trade Fee|
|$25.00||Treasury Trade Fee|
|$0.00||Certificate of Deposit (CD) Trade Fee|
|$34.99||Interactive Voice Response (IVR) Phone Trade Fee|
|$0.00||IRA Annual Fee|
|$0.00||IRA Closure Fee|
|$25.00||Forced-Margin Sellout Fee|
|$25.00||Returned ACH Fee|
|$25.00||Returned Wire Transfer Fee|
|$0.00||Stock Certificate Processing Fee|
|$0.00||Stock Certificate Delivery Fee|
|$0.00||Paper Statement Fee|
|$0.00||Paper Confirmation Fee|
|$0.00||Outgoing Domestic Wire Transfer Fee|
|$0.00||Outgoing International Wire Transfer Fee|
Commission NotesOur TD Ameritrade review revealed an online broker with no hidden fees. Their commission structure is centered around flat-rate trading. All stock trades are $9.99 regardless of the order size, price, time of order (regular market hours, pre hours, after hours), and order type (market order, limit order, stop order, etc.). Options trades are $9.99 + $.75 per contract. Broker assisted trades cost $44.99. Mutual funds cost $49.99 per trade. There is no commission charge for loaded funds, just the fees charged by the fund itself.
While TD Ameritrade has no minimum funding required to open an account, special promotions may have specific requirements. In addition, electronic funding has a minimum of $50 and Options/Margin privileges on an account require a minimum of $2,000 funded.
2014 Review Results - TD Ameritrade finished #1 Overall with 4.5 stars; Best in Class for Platforms & Tools, Research, Customer Service, Education, Mobile Trading, Active Trading, Options Trading, and New Investors; Was awarded #1 Desktop Platform for thinkorswim. Read the 2014 Online Broker Review.
2013 Review Results - TD Ameritrade finished #1 Overall with 4.5 stars, was awarded Best Desktop Platform, ranked #1 for New Investors, received 5 stars for Platforms & Tools as well as Education, and received numerous 4.5 star ratings and Top 10 Category finishes. Read the 2013 Broker Review.
2012 Review Results - TD Ameritrade was rated #1 Overall with 5-stars and Best in Class for Platforms & Tools, Ease-of-Use, Research, Customer Service, Investor Community, Investor Education, Active Trading, and Options Trading. In addition, they also received 2012 Best Web Based Platform with thinkorswim winning Best Overall Trading Platform. Read the 2012 Broker Review.
Misc. Account Information
|TD Ameritrade Clearing, Inc.||Clearing Firm|
|101||No. of Commission-Free ETFs|
|151||No. of Retail Locations|
|7115||No. of Mutual Funds (w/ Load)|
|3878||No. of Mutual Funds (No Load)|
|23||No. of 3rd Party Research Report Providers|
|4||Max. No. of Legs (Complex Options)|
|No Minimum Deposit|
|No Maintenance Fees|
|Online Trader Community|
|Live Chat Support|
|24/7 Customer Support|
|Long Term Trading|
|Credit Card Accounts|
|Debit Card Accounts|
Trading Platform Features
|Web Browser Platform|
|Windows Desktop Platform|
|Mac Desktop Platform|
Active Trading Features
|Direct routing offered to clients|
|Broker receives payments for order flow|
|Broker internalizes trades|
|Clients receive rebates for adding liquidity|