TD Ameritrade cryptocurrencies trading. Can you buy crypto (Bitcoin, Ethereum, and Dogecoin) at TD Ameritrade in 2022?

Buying Crypto on TD Ameritrade

Investors are no longer on the fence about whether digital assets should be considered a valid investment vehicle. Crypto has taken the investment world by storm in recent years and is now a part of the mainstream wealth conversation.

Trading crypto at TD Ameritrade is a possibility, but it comes with some limitations. Here are some of the crypto-trading opportunities at TD Ameritrade.

Trading Crypto at TD Ameritrade

One of the world’s largest stock exchanges, CME, now offers futures contracts on the most popular cryptocurrencies. There are numerous crypto-related ETFs and stocks to invest in, and traders now have access to crypto miner stocks.

In addition to all of that, many popular companies are now tied to the crypto and blockchain space and can be considered as crypto proxy stocks. Some examples include, PYPL, SQ, TSLA, Nvidia, and AMD.


TD Ameritrade Crypto


Advantages of Trading Crypto Directly

Although TD Ameritrade offers many ways to take part in the cryptocurrency marketplace, the one thing that’s missing is the opportunity to trade crypto directly. There are many benefits to accessing the crypto markets, and for some there is no substitution.

Here are some of the ways that crypto traders benefit from the crypto marketplace:

Unlike the stock markets, crypto trades 24/7 and is available globally. With easier access comes a great number of people taking part in the markets. With more liquidity, investors benefit from tighter spreads between the bid and the ask, fast execution speed, and enough volatility to keep traders happy.

Buying cryptocurrencies directly also means that you own the digital currency that you buy into. This is different from purchasing a security that either tracks the price of an underlying digital asset or has a value that approximates the real thing.

Another benefit to trading crypto directly is choice. In most cases, you will have access to many cryptocurrencies, leaving you plenty of room to be selective in how you build your crypto portfolio.

Best Alternative for Trading Crypto Directly

Since direct crypto trading is not yet available at TD Ameritrade, it is good to know of an alternative broker who offers access to the crypto markets.

Webull is one of our favorite alternatives. The popular broker allows users with a basic individual cash or margin account to buy and sell digital assets directly from a partner exchange, Apex Crypto.


Buy Crypto at TD Ameritrade


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Crypto Availability

At Webull, you can trade a large number of digital assets from the browser trading software, the desktop platform, and the mobile app. The broker offers market data and live updates for each cryptocurrency listed for trading, making it easier to get an in-depth understanding of market developments as they unfold.

Here are the cryptocurrencies that are available at Webull:

  • Algorand (ALGOUSD)
  • Avalanche (AVAUSD)
  • BAT (BATUSD)
  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Cardano (ADA)
  • Chainlink (LINKUSD)
  • Cosmos (ATOMUSD)
  • Curve DAO (CRVUSD)
  • Dash (DASH)
  • Decentraland (MANAUSD)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Dogecoin (DOGE)
  • Fantom (FTMUSD)
  • LINK (LINKUSD)
  • Litecoin (LTC)
  • Loopring (LRCUSD)
  • Polygon (MATICUSD)
  • REN (RENUSD)
  • SHIB (SHIBUSD)
  • Solana (SOLUSD)
  • Sushi (SUSHUSD)
  • Stella Lumens (XLM)
  • Terra (LUNAUSD)
  • The Graph (GRTUSD)
  • UNI (UNIUSD)
  • XLM (XLMUSD)
  • Zcash (ZEC)

Please note that while Webull does offer access to every cryptocurrency on this list, availability can vary between customers. City, state, and national laws can all have an effect on access to crypto markets.

Applying for Crypto Permission

When you first open your account at Webull (you can do it here), you will need to request permission to trade crypto.

Navigate to ‘Trading Access’ on mobile and ‘Account Management’ on the desktop trading platform. Locate ‘Crypto Trading’ and turn it on. Webull will let you know that you should wait for a short time while the activation process takes place. Once approved, you will see the option to trade cryptocurrencies from the ‘markets’ screen.


Can I Buy Bitcoin at TD Ameritrade


Day Trading Crypto at Webull

Anyone who has ventured into day trading at a brokerage will likely know about the pattern day trader rule, known as PDT. According to the rule, investors with less than $25,000 can only make 3 round trip trades in a rolling 5-day period. When you trade crypto directly, the PDT rule does not apply.

Having no restrictions on how often you trade means that you can take advantage of crypto price swings around the clock and as often as you like.

Crypto Settlement Times at Webull

Money that you earn from trading crypto at Webull always has a short settlement time. There is an 8:15 pm EST cutoff time for settlement in effect, which the broker uses to decide when to settle trades. Any trades that close out before the 8:15 threshold settle the next day, and trades settling after 8:15 take an additional day. Most traders will only notice this when making withdrawals, however, since money made from crypto trades is available instantly to place new trades.

Open WeBull Account

Grab your last chance to get 12 free stocks valued up to $30,600.

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Crypto Related Securities at TD Ameritrade

To take part in cryptocurrencies at TD Ameritrade, the following options are available:

Futures

CME offers a selection of options contracts that provide an avenue for highly leveraged crypto trading. There are full-sized contracts and micros, and you can trade in Bitcoin and Ethereum.

The full-sized contracts for Bitcoin (/BTC) and Ethereum (/ETH) are optionable and can be accessed if you have futures privileges enabled. For traders looking at futures but want less risk, Micro Bitcoin (/MBT) and Micro Ether (/MET) futures are available as well.

Funds, Trusts, & Indices

There are also numerous funds, trusts, and indices that track single cryptocurrencies or baskets. Examples include, BLOK, GBTC, ETHE, BCHG, and LTCN. While these types of securities do provide a close approximation to the crypto markets that they represent, there are some important differences. The first that you will notice is the limited trading times. Also quite noticeable are the premiums and fees that you pay.

Crypto Proxy Companies

In addition to securities directly pegged to the price of cryptocurrencies, there are also a number of companies that are connected to the world of digital assets and blockchain. Whether it is microprocessor stocks like NVDA and AMD, blockchain stocks like PYPL and TSLA, crypto mining stocks like RIOT, or anything in between, it is possible to engage with crypto through traditional stock trading methods.

TD Ameritrade Crypto Investing Summary

Trading cryptocurrencies at TD Ameritrade is certainly possible and there are many good securities to invest in. However, if you are looking to trade the crypto markets directly, a broker like Webull is a much better option. Not only do you get around-the-clock trading, but trading the pure price action of the cryptocurrencies that you are interested in comes with a lot of advantages.

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Updated on 3/8/2022.