TD Ameritrade is one of the most well-known investment brokers in the world. They have been helping investors of all levels for more than 40-years. TD Ameritrade was the first investment broker to offer investors discounted commission options after the SEC ended the practice of fixed-rate brokerage.
Online investing has been on the rise for many years and as more and more younger investors get involved. Companies like TD Ameritrade, make it easier for beginner investors to get involved in the stock market. They offer their members many benefits for setting up an account including no account minimum.
For this article, we put together some valuable information and we hope that you can use it. Hopefully, it will allow you to make an informed decision on whether TD Ameritrade is right for you.
5 Things that You Should Know about TD Ameritrade Before Becoming a Member
- Offers several powerful trading platforms – TD Ameritrade investment offers all of its member’s several choices when it comes to its trading platforms. The Thinkorswim® trading platforms are available in both desktop and mobile versions. Each platform puts all of the power of TD Ameritrade at your fingertips. The dashboard displays account information including trade status and access to research.
- Numerous Trading Options are Available – As a member of TD Ameritrade, you have access to several different types of investment products. Using any combination of the products you can build a very diversified portfolio. Whether you prefer stocks, mutual funds, Forex, and ETF trades, you will be sure to find all of the choices you need.
- Free Research is Available to All Members – Research is an important part of investing and all TD Ameritrade has access to all the research for free. There are many different well-known online sources for financial news and data. All of the trading platforms from TD Ameritrade include access to 15 different sources, including Reuters and Morningstar.
- Does Not Offer Fractional Share Investing – While TD Ameritrade offers a wide range of trading options, it does not offer its members access to fractional share investing. Other leading brokerage companies allow their members to use fractional shares (dollar amounts, instead of price per share), this could easily be seen as a negative and scare some investors away.
- No Account Minimum to Get Started – One of the reasons that TD Ameritrade is a very popular brokerage company with beginner stock market investors is because they don’t have an account minimum. You don’t have to deposit or add a specific amount of money to your account to become a member. You can get started with as little or as much as you want.
Pros and Cons
Pros of using TD Ameritrade for investing
- Multiple trading platforms, including mobile, desktop, and web portal
- Offers thousands of no-commission stocks and ETF trades available
- Free 3-rd party research
- Offers access to Forex and futures trading
Cons of using TD Ameritrade for investing
- No access to direct cryptocurrency trading
- Doesn’t allow fractional share trading