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TD Ameritrade is an online brokerage firm based in Omaha, Nebraska. The letters TD are derived from Toronto-Dominion Bank, the largest shareholder. TD is also the owner of TD Bank based in Cherry Hill, NJ. TD Ameritrade provides services for individuals who are investing online.
TD Ameritrade is not the cheapest in the industry compared to others like Ally Invest. They are, however, similar to ETrade in offering access to branch locations around the country. In fact, they currently have investment consultants at over 100 branch offices.
Similar to larger online brokers, TD Ameritrade offers many investment options including common stock, preferred stocks, bonds, mutual funds, exchange-traded funds (ETFs), options, and money market accounts.
TD Ameritrade is on the higher end of the per trade fee at $6.95 making it on par with ETrade. This makes it more expensive than other online brokers such as Fidelity and Scottrade.
TD Ameritrade does charge more per trade than some of its competitors. It does make up for it with a great trading platform and research capabilities. The online broker is good for investors who have moderate experience and want a bunch of features and tools to build wealth.
The TD Ameritrade platform is easy enough for a beginner to use but it may be best to stick with other options for lower trade fees.
Thinkorswim Trading Platform – TD Ameritrade's Thinkorswim is the name of their trading platform offering advanced tools, from heat maps to earnings calendars to back testing. It was voted the number one trading platform by Barron’s for best long-term investing and for novices.
No Minimum Opening Deposit – You can fund an account with any amount which is great for beginner investors.
Low Fees – With a $6.95 per trade fee it's not the cheapest but it's affordable. The simple pricing makes it easy to execute on stock trades.
Investment Options – TD Ameritrade offers many asset classes such as over 1200 mutual fund offerings.
Online Community – Offering an online forum for investors to communicate with each other, see each other's trades, and even post investment-related materials such strategies, recommendations, or general opinions.