This TD Ameritrade review will showcase the pros and cons and an overall picture of potential new users. Our review focuses on popularity, user rating and feedback, background information, security, offering, and fees.
TD Ameritrade is one of the largest online brokers that deliver the ultimate trading package. With its $0 stock, ETF, and per leg options trading commissions, high-quality market research tools, and industry-leading education for beginners, TD Ameritrade has proven to be a brokerage with an all-round experience that is quite tough to beat.
The firm has a 24/7 customer support system and fantastic trading platforms, including TD Ameritrade website, mobile apps, and thinkorswim.
Charles Schwab recently acquired TD Ameritrade, but the merger will take between 18-36 months to be completed. Thus, our review will examine TD Ameritrade as a standalone brokerage.
TD Ameritrade Popularity
TD Ameritrade is one of the biggest and well-known companies in the market, and the stats below are showing just that. The firm has a massive following across different social media platforms with a high level of popularity on mainstream media.
TD Ameritrade has its own media network. Investors can listen to market commentaries and educational segments on it every trading day. In October 2019, the firm joined in the pricing war and brought its $6.95 stock trade down to $0. This move increased the firm’s popularity, as reflected in the 11% growth in new client assets at the end of June 2020.
In 2019, TD Ameritrade was among Investor’s Business daily top online brokers for customer service, research tools, and trading platform. StockBrokers.com named TD Ameritrade #1 overall broker in its 2020 Online Broker Review.
| Query | Answer | Reference URL | Date |
| Number of users (approximate) | 12m+ | https://en.wikipedia.org/wiki/TD_Ameritrade | 31 March 2020 |
| Website traffic (estimated) | 25.2m | https://www.similarweb.com/website/tdameritrade.com/ | 18 Aug 2020 |
| # results on web | 7.3m | https://www.google.com/ | 18 Aug 2020 |
| Search volume Google | 673K | https://searchvolume.io/ | 18 Aug 2020 |
| Twitter followers | 141K | https://twitter.com/TDAmeritrade | 18 Aug 2020 |
| FB followers | 375K | https://www.facebook.com/tdameritrade/ | 18 Aug 2020 |
| How popular on mainstream media? | High | Yahoo Finance, ThinkAdvisor, Business Insider, Barron’s, The Business Times, The New York Times, Bloomberg, Forbes, Tech Crunch | – |
| Negative media? | Medium | https://www.sec.gov/news/press/2011/2011-36.htm https://www.wired.com/2008/07/ameritrade-hack/ https://www.nytimes.com/2009/07/21/business/21auction.html | 2008, 2009, 2011 |
| Notable awards | Best Broker for Stock Trading Platform and Research | https://www.nerdwallet.com/l/awards/investing/2020 | 2020 |
User Rating
As with any company, the reviews and ratings online vary, depending on each customer’s experience. Customers appear to be generally pleased with TD Ameritrade as the firm has a rating of 4.35 stars from 17 reviews.
The firm’s trading app is about the best in the business; most of the positive reviews center on the highly efficient trading platforms and market research tools. Some customers also praised the firm for their excellent customer service and great referral programs.
There are also some negative user feedback and ratings. One of the most common negative comments you will find is the long waiting for customer support.
In general, users seem to enjoy TD Ameritrade for their trading needs.
Background Information
TD Ameritrade was established in 1971. In 1975 when the Security and Exchange Commission banned fixed brokerage commissions, Joe ticket, who is the founder of Ameritrade, along with three other partners, established First Omaha Securities, Inc.
Over the years, First Omaha Securities evolved into one of the largest online brokerage firm-TD Ameritrade. In 1988, the company became the first to offer an automated quote and order entry system via touch-tone phone.
It is also credited as being the first to offer trading via mobile devices. It was in 1997, however, that the company became a public company. Since then, there have been several mergers and acquisitions as the company grew stronger.
Charles Schwab declared his intention to acquire TD Ameritrade in 2019, and the merger was closed in October 2020. However, TD Ameritrade will continue to exist as an independent brokerage for the next 18-36 months.
The table below provides detailed background information about TD Ameritrade Holding Corporation.
| Company public/private | Public | https://en.wikipedia.org/wiki/TD_Ameritrade |
| Revenue Data | $1.48 billion on Q2 of 2020 | https://www.fool.com/investing/2020/04/22/td-ameritrade-slips-37-on-q2-earnings-miss.aspx |
| CEO and bio | Steve Boyle, He is a professional member of the American Institute of Certified Public Accountants that worked previously for Banknorth and Barnett Banks | https://www.amtd.com/about-us/leadership/person-details/default.aspx?ItemId=93f2258f-73ad-4420-b2bc-4d3b7dee397d |
| Number of employees | 9,183 (2018) | https://en.wikipedia.org/wiki/TD_Ameritrade |
| Notable investors (private companies) | No notable investors but they acquired 3 companies | https://www.crunchbase.com/organization/td-ameritrade/company_financials |
Security
TD Ameritrade is a firm committed to giving its clients one of the best security in the industry. The firm is a member of Securities Investor Protection Corporation (SIPC), which means that clients’ accounts are protected with up to $500,000 with a $250,000 limit for cash.
In addition to this, TD Ameritrade also provides each client with $149.5 million worth of protection for securities with a $2 million limit for cash. The firm’s security generally meets Industry standards; they take every necessary precaution to protect clients’ assets against unauthorized activities.
TD Ameritrade also has two-factor authentication and uses firewalls to prevent unauthorized persons from accessing their clients’ personal information.
| Query | Answer | Reference URL |
| HTTPS Certificate | Yes | https://www.tdameritrade.com |
| 2FA ? | Yes | https://www.tdameritrade.com/security/asset-protection-guarantee.page |
| Device monitoring? | Yes | https://www.tdameritrade.com/tools-and-platforms.page |
| New device extra security? | Yes | https://www.tdameritrade.com/security/security-procedures.page |
Fees & Offering
TD Ameritrade has a wide range of offering to suit both new and active investors. The offering includes stock, mutual Fund, Bond, single and multiple leg options, futures and futures options, and forex. The firm also allows investors to trade CME Bitcoin futures. Its only drawback is that it doesn’t support cryptocurrency trading and is yet to offer fractional shares. This makes the firm less suitable for investors with limited capital to invest.
TD Ameritrade offers commission-free stock, ETF, and options trades. It also requires no account minimum. The company has over 4,200 no transaction fees mutual funds, but it charges $49.99 for mutual Funds trade outside the no transaction fee category. The firm charges $0.65 per contract fee and a flat rate of $6.95 for trading OTCBB (penny stocks).
Trading App
TD Ameritrade has excellent trading platforms that are great for all trader types and new and experienced investors alike. The firm has two main trading platforms- TD Ameritrade thinkorswim (web) and thinkorswim (desktop) with a mobile version for each.
The thinkorswim desktop and web apps have high-level tools that investors can use to generate ideas, monitor potential risks and rewards, perform analysis, and test strategies. The app is also helpful for beginners as it has onboarding tools like think manual and platform tutorials for beginners.
Thinkorswim web provides users with a streamlined experience. Traders can easily set up trades in just a click as the app includes preconfigured strategies. The firm is also a leader in mobile trading.
TD Ameritrade mobile and thinkorswim mobile apps have unique tools that enable investors to track their investments and seize opportunities. Some of the highlights include easy and intuitive order entry and editing, live text and screen sharing, access to watch lists and real-time quotes, customizable charts with lots of technical indicators.
With so many tools to choose from, it might be a little overwhelming for new users, and investors might end up spending too much time trying to decide which tools to use.
Final conclusions: TD Ameritrade – is this the best trading platform?
TD Ameritrade is a rare broker that offers an impressive list of services to meet both beginner investors and advanced traders’ needs. Its great tools, in-depth research, customer support, and investor education makes the firm a platform that’s certainly worth considering. Beginner investors will find the firm’s thinkorswim app a very helpful tool. The firm is also an excellent pick for investors who use mutual funds as it has $0 commissions on ETFs and over 1,800 no-load, no-transaction-fee mutual funds.
It might not be as modern as Robinhood, especially considering the mobile app. Nonetheless, it is a giant in its niche, and that comes with a lot of reassurance that you’re in good hands with your trade.