TD Ameritrade pros and cons. Advantages, benefits and disadvantages of TD Ameritrade brokerage company in 2019.


TD Ameritrade Rating:  4.5-star brokerage firm rating

TD Ameritrade Advantages and Benefits

If you’re considering opening a TD Ameritrade account, chances are it’s because you’ve heard a lot of positive reviews of their services and platform. Although they are not one of the “free brokers”, Ameritrade is one of the top brokers out there when considering all the value they provide relative to their straightforward costs. This article will go over all the major advantages of trading with Ameritrade.

Local Branches

With so much emphasis on cost-cutting these days, many of the discount brokers don’t have physical locations anymore. That’s not true for Ameritrade, which boasts more than 450 local branches spread out across the U.S. This is a great convenience for investors, as you can easily schedule walk-in appointments to get help with your investment planning or assistance with account issues.

Straightforward Commissions/No Surcharges

Some brokers charge their customers an additional fee on top of their standard commission for trading penny stocks, while other brokers don’t even offer penny stocks. A great feature of your Ameritrade account is that they have a straightforward, fixed commission of $6.95 for all equity trades, including penny stocks.

No Account Maintenance or Inactivity Fees

Right in line with Ameritrade’s straightforward commissions, they are a very transparent broker when it comes to fees in general. They don’t charge any account maintenance or inactivity fees, which means you could open an account today without depositing a dime and still take advantage of all their great benefits and features for free. Trading is really the only action where they charge you, besides small fees for certain things, like wire transfers or choosing paper statements over electronic ones.

Trading Platforms

When it comes to trading software and platforms, this is another area where Ameritrade leaves little to be desired. They boast a variety of different trading platforms, from their website and mobile app, which are best for basic functionality, to their Trade Architect and world-class Thinkorswim trading platform. Thinkorswim is highly-regarded among equity and option traders for its advanced features and user friendly approach to building complex options trades.


TD Ameritrade Trading


Great Promotional Offer

Ameritrade currently has a nice promotional offer to bring in new clients. Just by opening a new account, you will be given 60 days of commission-free equity trading. Additionally, for those who make large enough deposits, they will also be given a cash bonus of up to $600.

TD Ameritrade Promotion

Trade free for 60 days + get up to $600.

Open TD Ameritrade Account

Practice Trading

Ameritrade offers Paper Money virtual trading accounts free of charge within its Thinkorswim software. This feature is a great way for beginners to get as close to the real thing as possible without risking actual money, and similarly is used by experienced traders to test out new strategies.


paper Trading


Trading Community

Ameritrade investors can easily access the broker’s myTRADE investor community to learn from experienced traders and see what trades other Ameritrade clients are putting on in their accounts.

Free Level II Quotes

All Ameritrade accounts, regardless of their balance or trading volume, receive free, real-time level II quotes. This is a big benefit, because many brokers don’t offer real-time level II quotes, or if they do they come at an extra cost.

Leading Research and Tools

Also free with your Ameritrade account is a rich selection of third-party equity research reports from a dozen firms, including Standard & Poor’s, Morningstar, and TheStreet. In addition to research reports, Ameritrade also boasts robust screening tools for stocks, mutual funds, and ETFs.

Commission-Free ETFs

One of the recent benefits Ameritrade rolled out is its offering more than 500 commission-free ETFs. As long as you hold them for at least 30 days (selling within 30 days will incur a short-term trading fee), there is no charge for buying or selling them.

Mutual Fund Selection

Ameritrade boasts one of the strongest selections of mutual funds that we’ve seen with any broker. They offer more than 13,000 mutual funds, with about 2,500 of them being commission-free.

Free DRIP

Dividend Reinvestment Plans (DRIP) are a convenient feature of many brokers because they allow you to choose to have your broker automatically reinvest any dividends your investments pay instead of receiving them as cash and having to pay a commission to buy more of the stock. Ameritrade offers a DRIP service free of charge, and lets you individually choose which of your investments you want included in your DRIP.

No IRA Fees

Another great feature of Ameritrade is that their IRA accounts are similar to standard accounts in that there are no setup, termination, or account maintenance fees.

Great Customer Service

Having had to contact customer service for a variety of brokers, we can safely say that Ameritrade has some of the best customer service in the brokerage space. They offer chat, email, and phone support 24 hours a day, seven days a week. The representatives we’ve gotten on the phone have always been very knowledgeable and wait times are usually less than a minute.

Scottrade Purchase

As a result of Ameritrade’s acquisition of Scottrade, Ameritrade clients can also benefit from the services offered by Scottrade.

TD Ameritrade Promotion

Trade free for 60 days + get up to $600.

Open TD Ameritrade Account

TD Ameritrade Advantages Summary

It was tough to summarize all of the advantages and benefits of trading with Ameritrade in one article. There are so many reasons to go with Ameritrade, whether you are a frequent day trader, long-term investor, or brand new to the markets. They offer high quality features and platforms that cater to all types of investors, all for a reasonable and straightforward commission schedule.




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