2019: How to enter limit order on TD Ameritrade for stocks and ETFs? How much broker is charging for buy and sell limit orders?

Placing Limit Orders on TD Ameritrade

For those new to trading, seeing all of the different types of orders you can place through your brokerage account can be a bit confusing, if not a little overwhelming. The limit order is one of the most commonly used and recommended order types when trading stocks. This article will explain how it works and how to enter it in TD Ameritrade account.

What is a Limit Order?

When you place a limit order to buy a stock, picture yourself at an open-air market bartering for something that has caught your eye. In your mind you have already determined you’re willing to pay $X for this item, because that’s what it’s worth to you. However, of course you wouldn’t mind if the seller was willing to sell it to you for less.

A limit order to buy stock follows the same logic - you’re telling your broker that you’re willing to pay $X per share for a stock, but obviously you want it for less if they can find a willing seller at a lower price. A limit order to sell stock works the same way, except $X becomes the lowest price you’d be willing to accept to sell your shares.

Entering a Limit Order on Ameritrade

Let’s walk through an example of placing a limit order on your Ameritrade account on the website.

Let’s say we are interested in purchasing 100 shares of the SPDR S&P 500 ETF (SPY). The current price, or the last price, is $263.25. This indicates that the last trade in this ETF was executed at a price of $263.25 per share. The current asking price is at $263.00; however that’s too high for me because I’m only willing to pay up to $262.90 per share. Here’s a step by step guide on entering this order using the screenshot below.


TD Ameritrade Limit Order


Step 1 – Enter the Stock Symbol

Enter the symbol of the stock or ETF you want to buy in the “Quote” box at the bottom of the screen to see its last, asking, and bid prices.

Step 2 – Select Whether You’re Buying or Selling

In the Action field, select “Buy” (or “Sell” if you wanted to sell a current position) from the drop-down menu.

Step 3 – Enter the Number of Shares

In the Quantity field, enter the number of shares you want to buy.

Step 4 – Choose Your Order Type

Select “Limit”, as that is the order type we want to place.

Step 5 – Enter the Price

In the Price field, you will enter the maximum price per share that you are willing to pay. In this case, I’ve entered $262.90. This means that my order could be executed at $262.90 per share, or possibly at a lower price.

Step 6 – Choose the Time Frame

The last field is the “Time-in-force” field, which indicates how long you want your order to stay open if it’s not filled right away. If you select “Day”, your order will be deleted at the end of regular trading hours (4:00PM) that day if it’s not filled. Selecting “GTC” will keep your order active during regular market orders for every day until it is filled. The “+ ext” option should be used if you want your unfilled order to also remain active outside of regular trading hours.

Step 7 – Submit the Limit Order on TD Ameritrade

Lastly, after entering all the above details click the “Review Order” button. This will then ask you to review your order to make sure everything was entered correctly. After confirming it is all correct, click the “Place Order” button to submit it.


Ameritrade Limit Order


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TD Ameritrade Fee on Limit and Stop Limit Orders

TD Ameritrade is charging $6.95 commission for both Limit and Stop Limit orders for all stocks and most ETF's. ETF's that are on the list of 296 commission-free products will get $0 commission.

What Next?

After you’ve submitted the limit order you can go to the “Order Status” page to view its status. In the below screenshot, you can see that this trader placed an order to buy 509 shares of PSK, which was filled at a price of $40.84.

Sometimes, you may have an order that gets “partially filled”, which for a buy order would mean that Ameritrade was only able to get some of the shares you wanted at the price you indicated. If this is the case, then the shares that did not get filled would remain open in a partial order until they are also filled.

It’s important to note that if you edit an open partial order (i.e. change the price or shares), Ameritrade will treat this as a brand new order and charge you a new commission if it’s executed.

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