Is TD Ameritrade Free To Use?
The answer to the question "Is TD Ameritrade Account Free?" is Yes and No. "Yes" - it costs nothing
to open and have an account at TD Ameritrade. There are no annual account fees as well as no setup,
maintenance or inactivity charges. Trading most stocks and ETF's is almost free, too. And "No" - if
you wish to buy or sell a foreign stock, mutual fund, or option there are usually broker commissions
to pay (with some exceptions mentioned below).
To open a non-retirement or retirement account at TD Ameritrade there is no initial deposit
requirement. You can do it with $0.
TD Ameritrade charges $0 per trade commission for stocks and ETFs listed in U.S. exchanges, for
unlimited shares and without any volume requirements.
The firm has no IRA fees, aside from outgoing account transfer charges. There are no account
inactivity or maintenance fees.
Comparison
Is TD Ameritrade Thinkorswim Free?
Thinkorswim is the flagship desktop trading platform at TD Ameritrade which is considered the best in the industry. It's a software for active traders,
day-traders and professional investors. Amazingly, Thinkorswim is available to all TD Ameritrade clients free of charge. Most other brokers either
charge fees, have strict access requirements, or don't offer advanced trading platform.
All TD Ameritrade Commissions
| Product | Price |
|---|
| Stocks and ETFs | $0 |
| Stocks and ETFs broker assisted | $25 |
| Options | $0.65 per contract |
| No-load mutual funds | $49.99 |
| Treasuries at auction | $25 |
| All other bonds and CMOs, CDs | on a net yield basis |
| Futures | $2.25 fee per contract (plus exchange & regulatory fees) |
| Forex |
Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix).
There are no additional fees or charges.
|
Establishing an IRA at TD Ameritrade
While some retirement savers prefer the safety and consistency of FDIC-insured bank products, others will want higher returns. Bank's
1.00% yield is consistent and protected, but it is not nearly as high as what a brokerage account could possibly do. However, a
securities account isn't protected by the FDIC. Instead, brokerage houses can join the SIPC, which provides insurance up to $500,000, including $250,000 for cash balances. The SIPC is Congressionally-mandated but funded by its member brokerage firms.
TD Ameritrade participates in the SIPC program. In addition to providing twice the amount of insurance that FDIC can offer, TD Ameritrade
also has a wide range of securities that can be traded inside an IRA. The broker has stocks, bonds, ETF's, and mutual funds. These assets
are more volatile than bank products, but offer higher return potential than at banks.
TD Ameritrade customers can select from a variety of IRA's. The broker has Traditional, Roth, SIMPLE, SEP, Rollover, Minor Traditional, and Minor Roth accounts. There are no fees for any of them. Other brokerage houses, by comparison, do charge IRA fees. Fidelity customers, for example, must pay $50 to close an IRA; while Ally Invest charges $50 for an IRA below $2,500 that hasn't placed any trades in the preceding 12 months.
The commission schedule at TD Ameritrade applies to both retirement and non-retirement accounts. ETF and stock trades are $0 per side. The broker offers live representatives to help clients place a trade. Using this service costs $25. Paper statements are free for accounts with balances above $10,000.
What really attracts retirement savers to TD Ameritrade is its large selection of funds. ALL ETF's now can be
traded without paying any commissions. There are also over 2,000 mutual funds that carry no load and no
transaction fee. In total, the firm's customers have access to more than 13,000 mutual funds. There are also
target-date funds available at TD Ameritrade. These are mutual funds that become less risky as retirement
approaches.
Another feature of TD Ameritrade that attracts many investors is its great customer service. The company has more than 100 brick-and-mortar locations that provide extra in-person service, which may be of value to investors trying to plan for retirement.
Retirement Education
TD Ameritrade, by contrast, has more retirement resources on its website. For example, there are IRA calculators that can be helpful in retirement planning. One tool determines when a user can begin making withdrawals from an IRA penalty-free. Another takes users step-by-step in choosing a Traditional or Roth account. The broker also has videos and articles on a range of retirement topics, such as 401(k) rollovers.
Is Thinkorswim Free Summary
TD Ameritrade's method of investing is more complex than at a bank, but offers higher return potential. The company is a safe bet.
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