TD Ameritrade Rating: 
Opening a UTMA Account at TD Ameritrade
If you’re looking for a method to build a nest egg for a child or grandchild, TD Ameritrade may have an answer for you. The brokerage firm offers custodial accounts in the form of UGMA and UTMA accounts. For more details, read on.
UTMA and UGMA Accounts at TD Ameritrade
TD Ameritrade has a long list of available account types. Among these are two custodial accounts: the UGMA and the UTMA. Both of these are very similar. In fact, they are identical in their tax structures. The only difference is that one of them can hold physical assets like real estate, while the other cannot. Because TD Ameritrade doesn’t offer investing in real property, the issue is not relevant here.
The account you will open at TD Ameritrade will depend on your state of residency. Most states today offer only the UTMA, although there are a couple of exceptions.
TD Ameritrade’s Account Application
To open a custodial account with TD Ameritrade, you simply need to
head over to the broker’s account opening page
and click on the green
Open New Account link. It is located in the top-right corner of the site. When you click on this link, you’ll get a new page with several account types in the left-hand column. You’ll see a UTMA/UGMA link under several headings. These include Most Common, Joint/Minor, and Education Savings. It doesn’t matter which heading you choose.
TD Ameritrade has a brief online application. No paper form is required to get a custodial account open, although if you prefer the older method, there is a link at the bottom of the broker’s web-based form to download a paper app. Although an account cannot be opened over the phone, the broker is always able to answer any questions you have during the process. The new accounts department can be reached at 800-454-9272.
With either the digital or paper form, you will need to supply credentials on both the custodian and the minor. The minor must be a U.S. citizen or permanent resident and under the age of 18. The custodian is usually a parent or grandparent, although legally speaking, he could be any legal adult at least 18 years old or older.
Either the custodian or the minor must live in the state in which the account is established. Both of them don’t need to. That state of account opening will determine the age of majority, which is the age at which the account is completely turned over to the minor. This is true if both the custodian and the minor move to another state at a later time.
Pricing Schedule for TD Ameritrade’s Custodial Account
TD Ameritrade imposes the exact same commission and fee schedule on its custodial accounts that it uses for other account types. This means online trades of stocks and exchange-traded funds are free of charge. There is no minimum balance requirement, no deposit requirement, and no annual fees (or other ongoing account fees).
Open TD Ameritrade Account
Open TD Ameritrade Account
Learning Resources at TD Ameritrade for Young Investors
On the TD Ameritrade website, there are several educational materials that will be of value to beginners. The broker publishes articles, videos, webcasts, and online courses devoted to investment topics. It sends out a quarterly newsletter named thinkMoney® and even operates its own streaming financial news service called The TD Ameritrade Network. It’s kind of like a scaled-down version of CNBC.
Educational materials we found on TD Ameritrade’s website that may be of value to new investors include:
- Learn to Invest: Start With Your Goals and Objectives
- Investing Basics: Stocks
- How to Invest in Your 20s
- How to Choose an Equity Mutual Fund
Although TD Ameritrade’s desktop platform is difficult to learn, it does have a demo mode that permits practicing without risking any actual money.
Open TD Ameritrade Account
Open TD Ameritrade Account
Continue Reading