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TD Ameritrade Review & Rating [yyyy]

TD Ameritrade Review & Rating 2022

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If you are looking for a broker to invest your money, TD Ameritrade may be the best option. They offer competitive rates and will help you get started with investing if you're a beginner. The company has been around since 1975, which means they have much more experience than other companies do. This can be an advantage when it comes to understanding the markets and how investments work.

Td ameritrade review

image credit: TD Ameritrade

TD Ameritrade is one of the top 10 brokers in America as well as being Fortune Magazine's #1 online brokerage firm for six years in a row from 2008-2013! In this TD Ameritrade Review article, we are going to be unbiased as much as we can. AtoZ Markets is in no way responsible for any opinions of the writer. If you are from TD Ameritrade and think that the writer did something wrong, please contact the AtoZ Markets editorial team.

Overview

Company
7/10
Trust
8/10
Trading Platform
8/10
Account Types
8/10
Costs
7/10
Customer Support
8/10
Regulation
8/10

Company

7 /10

TD Ameritrade Review: Offered Products

With TD Ameritrade, you can have access to a vast selection of online investments and trading options and powerful trading platforms as well as research and education that can assist you in creating the perfect portfolio for your preferences. They offer the following products for investment.

—† Stocks

—† Options

—† ETFs

—† Mutual Funds

—† Futures

—† Forex

—† Managed Portfolios

—† Cash Management

—† Bonds and CDs

TD Ameritrade Pros and Cons

  • Pros

- A long history of investing, helping millions of people on Wall Street

- They have 175+ Branches in the USA.

-  Zero Commission on online stock, ETF, and option trades.

- No Trade Minimum

- Up to 50% Margin on Margin Account.

- Amazing thinkorswim trading platform

- Huge Selection of account types and products

- Help from specialist

  • Cons

- They don't have fractional share

- Cryptocurrencies are not available except Bitcoin

- Limited to the USA only

- High Fund fees

Trust

8 /10

Is TD Ameritrade a Scam Broker?

Is TD Ameritrade Scam?

No, TD Ameritrade is not a scam broker. In fact, they are one of the most well-known and respected brokers on Wall Street. Their trading commissions may be a bit higher than some of their competitors, but that doesn't mean that they are a scam. TD Ameritrade has been in business for over 40 years and has helped millions of people invest their money. If you're looking for a reliable, reputable broker to help you invest your money, then TD Ameritrade is definitely worth considering.

Trading Platform

8 /10

They have Web Platform, thinkorswim desktop, thinkorswim  Web and Mobile Platform.

TD Ameritrade trading platforms

image credit: TD Ameritrade

  • TD Ameritrade Web Platform

In their web platforms, you will get all the tools you need to trade. It gives you access to third party resources and up to date financial news for Yahoo news.

  • thinkorswim desktop

TD Ameritrade desktop

image credit: TD Ameritrade

It's a very professional trading platform.

It has high level tools to do analyses and test strategies.

You can generate ideas with market scans and it has the ability to monitor potential risk/reward.

This platform has onboarding tools like thinkManual.

thinkorswim desktop is a fully customizable, downloadable software.

  • thinkorswim web

It has an intuitive interface with critical tools front and center.

In it, you will get pre configured strategies.

As it's web based, you can get access from anywhere with internet connection.

  • TD Ameritrade Mobile Apps

TD Ameritrade Mobile apps

TD Ameritrade has one of the best mobile trading platforms with a lot of offerings.

It has device optimized apps. Now you can connect with Apple Watch.

You can do everything on their mobile platform.

Account Types

8 /10

TD Ameritrade has a few different account options to choose from. Let's find out all the account types they offer.

Standard Accounts

TD Ameritrade Standard Accounts provide flexibility and a lot of investment products. They have different kinds of Standard Accounts.

Before opening an account, learn about all of them.

  • Individual

An individual account of TD Ameritrade is their standard brokerage account. As the name suggests, the owner of this account is a single person.

  • Joint Tenants with Rights of Survivorship (JTWROS)

A JTWROS account can have at least two account owners, with each holding an unrestricted share of the entirety of the property.

  • Tenants in Common

A Common Tenants account is one that has at least two account owners, with each having a certain proportion of the property.

  • Community Property

The Community Property account is owned by two couples who have acquired property in the marriage (with some exceptions). Community Property is based on the notion that both spouses have equally a stake in the property that was acquired through the efforts of both spouses during the marriage.

Only 9 states of the US offer Community Property accounts: AZ, CA, ID, LA, NM, NV, TX, WA, and WI. Puerto Rican citizens are also permitted to open this account type. Non-resident aliens aren't allowed to open this account type.

  • Tenants by the Entireties

The Account called Tenants by The Entireties account is held by two married people.

Only the following states accept this type of account: AK, AR, DE, FL, DC, HI, KY, MD, MA, MI, MS, MO, NJ, OK, PA, RI, TN, VT, VA, and WY. Non-resident aliens cannot be qualified for this type of account.

  • Guardianship or Conservatorship

Through these accounts, holders' assets - typically those belonging to an individual who is a minor or who is unable to manage their financial or personal property is managed by a conservator or guardian. The investment decisions are made exclusively by the court-appointed guardian , or conservator.

Retirement Accounts

TD Ameritrade has a wide range of retirement accounts that are designed to satisfy your financial and lifestyle requirements. Find out more about their retirement accounts below.

Traditional IRA

A Traditional IRA may give you an immediate tax advantage since contributions are usually tax-deductible. If you have a Traditional IRA, up to $6,000 of tax-deferred earnings can be put into the IRA. Account holders may also make a contribution of an additional $6,000 each year of income earned to an additional IRA for spouses that are not income-earning. Account holders who are 50 or more are permitted the option of contributing an extra $1000.

Tax-free distributions from an IRA can be made without penalty beginning at 59 1/2. They must begin on April 1st in the calendar year that follows the date the account owner is 72 years old unless you turn 70 1/2 before January 1st 2020. If that's the case, you should start taking distributions from the 1st day of April after the date when the account owner turns 70 1/2 .

Basic Eligibility Conditions

  • Beginning in the 2020's tax year there will be no age limitations
  • You must earn income or have a spouse who has an income that is qualified earned
  • No income limits

Roth IRA

The tax benefits of a Roth IRA differ from a Traditional IRA. If you're eligible for this account, the annual contribution limits will be the same but they're not tax-deductible. But, as contributions to the account were taxed previously but not tax deductible, the contributions will never be taxed in the future and gains can increase tax-free. Additionally, the funds contributed can be taken out whenever you like and there is no requirement for minimum distributions.

Rollover IRA

The Rollover IRA is intended to be an account that holds the distribution of funds from some qualified pension plan of an employer, such as a 401k plan or 403(b). The transfer of funds into the Rollover IRA could permit the owner of the account to transfer them to another company's eligible retirement plans in the near future.

Transferring your old 401k account into an TD Ameritrade IRA is free and there's no set-up or ongoing fees. It also helps you avoid expensive taxes and penalties on cash distributions in the event that you plan the cash-out of the account.

SEP IRA

An SEP (Simplified Employee Pension Plan) IRA is a retirement plan designed for self-employed people as well as small-business employees and owners. SEP IRAs might not just appeal to employees, but they can be easy and quick to establish and run for small businesses. You should consider a SEP when your company is just starting out or has a fluctuating profit.

The Key Features

  • Simple administration
  • No employer tax filing
  • No annual requirements for funding.
  • Flexible contributions
  • Eligibility The Plan Sponsor must meet certain requirements.

The employee must be 21 or over, have earned at or above $600 over the calendar year, and have completed three of the previous five years. Employers are able to adopt less strict conditions for eligibility in order not to bar them from the benefits plan.

TD Ameritrade also has Solo 401k (for small businesses), SIMPLE IRA (Savings Incentive Match Plan for Employees) and Pension or Profit Plan under retirement as accounts.

Education Account

From July 2021, TD Ameritrade is not allowing its customers to open 529 Plan accounts. But they have two more Education Account Types.

Those are Coverdell Education Savings Account and Custodial Uniform Gift to Minors Act (UGMA)/Uniform Transfer to Minors Act (UTMA). To know more details about these two types of accounts go to the link below.

https://www.tdameritrade.com/account-types/education.html

Specialty Account

TD Ameritrade's Specialty investment accounts include Trusts, Limited Partnerships, Partnership, Limited Liability, Sole Proprietorship, Corporate, Non-incorporated, Small Business Plan, Charitable and accounts for Investment Clubs. To know the details of these accounts, go to their website.

Managed Portfolio

TD Ameritrade managed portfolios

TD Ameritrade offers two types of managed portfolio accounts. Those are below.

Selective Portfolios

It involves a wider selection of portfolios with a focus on goals made up of ETFs or mutual funds that are based on different goals and risks, which is constantly monitored and rebalanced.

Personalized Portfolios

Customized portfolio planning as well as investment guidance from an experienced Financial Consultant who considers your entire financial picture into consideration.

Margin Account

In a margin account, you can borrow money to buy marginable securities. Follow the following steps to open a margin account with TD Ameritrade. They give up to 50% margin.

1. 1st you have to open a TD Ameritrade account.

2. You need to be sure that the “Actively trade stocks, ETFs, options, futures or forex” button is selected.

3. You have to fund your account with a minimum of $2,000 in cash or marginable securities.

4. You have to maintain a minimum of 30% of your total account value as equity at all times.

Costs

7 /10

Minimum Deposit and Fees for Standard Account:

There are no minimum deposit requirements to open an Individual Account. $50 is the minimum requirement for electronic funding.

You need a minimum of $2,000 to get margin and options facilities.

An account holder can assign a beneficiary. All the assets with the broker will be passed to the beneficiary if the owner dies.

Account Minimums and Fees for JTWROS:

There isn't a minimum amount needed to open an account. However, promotional offers might have requirements.

The minimum amount for electronic funding is $50.

You need at least $2,000 to get margin and options facilities.

In the event of the death of an account holder, the remaining owner of the account holder(s) retain(s) all rights in the account in its entirety.

Account Minimums and Fees for Tenants in Common:

There is no minimum amount needed to open an account. However, promotions that are special may require a minimum amount.

The minimum amount for electronic funding is $50.

Option or margin rights on accounts require an initial minimum of $2,000.

If one dies, of the account owners the estate of the deceased owner has the right to the account owner's share in the accounts. Foreign nationals who are not residents of the United States are not qualified for this type of account.

Minimum Account Balances and Fees for Community Property:

You won't have to deposit any minimum amount to open a bank account. However, promotional offers may require a minimum amount.

The minimum amount for electronic funding is $50.

Option or margin privileges on accounts need at least $2,000.

If there is a separation or the death of a spouse, property will be taken as belonging to half of the spouses.

Minimum Account Balances and Fees for Tenants by the Entireties:

There is no minimum amount needed to open an account. However, promotions that are special might have certain requirements.

Electronic funding requirements are $50.

Option or margin rights on accounts require at least $2,000.

This type of account differs in comparison to Community Property in that upon the death of the account owner, the other holder will have the rights to the entire account. But, the property can't be sold in order to settle the obligations of one owner.

Account Minimums and Fees for Guardianship:

There is no minimum amount needed to open an account. However, promotions that are special may require a minimum amount.

Electronic funding requirements are $50.

Fees and Account Minimums for Traditional IRA:

  • No minimum investment required to open an account.
  • There aren't any maintenance charges for retirement accounts.

Commissions, service charges and extra fees may remain in place.

Can you withdraw from TD Ameritrade?

The withdrawals of your contributions to a Roth IRA are tax-free anytime. However the withdrawals of earnings are restricted from federal income taxes, in the event that you meet these conditions:

  • You're buying the first house you own ($10,000 life-time maximum)
  • It is believed that the Roth IRA has been in existence for at most five years
  • You are 59 and 1/2 years old or more
  • If you become disabled, or died

What You Need to Be Educated About Costs of Converting

You are able to change a Traditional IRA to a Roth IRA at any point. It is important to note it is a requirement that when you make the switch into a Roth IRA, you must pay tax on the otherwise tax-deductible value of your transfer. To get the most benefit from conversion, the funds needed to pay these taxes should be sourced from other than your Traditional IRA you are converting. You can change to a Traditional IRA over several years to minimize tax burdens.

Account Fees and Minimums:

  • The minimum investment required to open an account.
  • There are no fees for maintenance for retirement accounts.

Commissions, service charges and extra fees may remain in place.

Minimum Account Fees and Account Minimums for Rollover IRA:

  • The minimum investment required to open an account.
  • There aren't any maintenance charges for retirement accounts.

Commissions, service charges and extra fees may remain in place.

Setting-Up and Funding for SEP IRA:

The SEP IRA must be established and set up prior to the tax return deadline, and also with an extension. The amount of contributions can be different from year to year. The contributions of all contributors are recorded during the year of taxation on the tax form 5498.

Account Minimums as well as Advisory Fees for Selective Portfolio:

The minimum investment is $25,000. The advisory fees are based on the portfolio and investment amount.

Account Minimums as well as Fees for Advisory for Personalized Portfolios:

Minimum investment in the amount of $250,000. (can be combined with different accounts). The advisory fees are based on investments and portfolios.

Customer Support

8 /10

Is TD Ameritrade Customer Support Good?

TD Ameritrade customer support

Customer service is an area where TD Ameritrade outshines much of the competition.

They have email and mobile support. You can also visit their branches to get any support.

Their Account service and support is available 24/7.

Regular support is also available 24/7.

Technical Support is available from 7:00 a.m. to 6:00 p.m. ET, Monday through Friday.

Regulation

8 /10

How is TD Ameritrade Regulated?

TD Ameritrade regulations

TD Ameritrade is a regulated and licensed broker. They are registered with the SEC and FINRA. TD Ameritrade has been in business for more than 40 years and they have helped millions of people invest their money on Wall Street.

If you're looking for a reliable, well-known brokerage to invest your money, TD Ameritrade should be at the top of your list. They are a regulated and licensed broker, registered with the SEC and FINRA.

Futures, Futures options, and forex trading services are provided by Charles Schwab Futures and Forex LLC. It is a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member.

This means that you can trust them to handle your money safely and securely. Additionally, their trading commissions are some of the lowest around, so you won't have to break the bank when investing with TD Ameritrade.

Conclusion

To conclude our TD Ameritrade Review, One thing we can note about the broker is that they are a member of the SIPC. This means that if TD Ameritrade were to go bankrupt, your investments would be protected up to $500,000 per account. So, if you're looking for a broker for a self-directed IRA, TD Ameritrade is a good choice.

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