If you’re on the hunt for an online brokerage, TD Ameritrade should definitely be on your radar. Yes, it’s another pseudo-fintech option offered by a big bank, but once you peek under the hood, you’ll be (very) impressed with how powerful it is, and how much you can get out of it.
And surprisingly enough, it’s a good fit for beginner investors, too. But let’s not get ahead of ourselves here.
TD-what-now?
TD Ameritrade is an online brokerage, and it comes standard with everything you’d expect of one: you can buy and sell a range of investments, on your own, from your laptop – and it won’t break the bank. TD Ameritrade’s cost per trade is $9.99.
They’re also another online option with the weight of a big bank behind them, so if stability and security is your thing, they’ve got that in spades.
And if you’re sitting there thinking, “Hmm, I feel like I’ve heard of them somewhere”? They’re an official sponsor of the NFL. No, your love of football is not a valid reason to open an account with them – but I’ve got other good reasons.
How much it costs
As previously mentioned, TD Ameritrade offers a standard price of $9.99 for most of the trades on their online brokerage. That means you can buy stocks for a flat rate of $9.99 if you do it online, but if you want to talk to a human to execute your trades, it’ll cost you. Their pricing for phone trades starts at $34.99 – but then again, who likes talking on the phone these days anyways?
They also offer hundreds of ETFs and mutual funds that are free to buy, and gold star alert: they don’t just offer their own brand of mutual funds for free. No, they give you a wide range of choice in terms of what mutual funds and ETFs are the best fit for you, and they even offer tools to help you choose.
But if we can loop back to that $9.99 fee for just a minute, it’s actually one of the higher online trading fees you’ll find in the online brokerage market. Why is that?
What makes TD Ameritrade worth the higher price?
I’m of the mindset that sure, you can spend more on something, as long as it’s valuable to you. If great data to help you analyze your stock picks falls into the category of “worth it to you,” TD Ameritrade’s (slightly) higher prices will be right up your alley.
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Their platform is built with serious traders in mind, and they offer the data to match. Not only will you get all the charts and graphs you could ever hope for, you’ll also get multimedia options like a 24/7 stream of CNBC, and live audio of the futures trading pit.
That’s pretty important when it comes to buying and selling any kind of investment on your own, without the support of an advisor or a robo-advisor. Pro investors spend their entire day in front of dashboards of data like this, to help them make good investing decisions. I’m not saying you need to spend all day looking at the data, but, if you wanted to, TD Ameritrade’s got your back.
Why experts would like this
You know the person in all of your group projects who couldn’t write to save their life, but was a whiz with numbers and data? Yeah, they would love this platform. If access to research and data and numbers is your jam, I’d be hard pressed to recommend a more appropriate online brokerage for you.
However, if you just want to buy and sell a few things that you’re already sure about, and you don’t feel like a deep dive into the wild, wild west of data? There are likely cheaper online brokerages that might be a better fit for you.
With one big exception.
Why beginners would like this
If you’ve been reading this, thinking it sounds like the Rolls Royce of data, and you’re a beginner investor who wouldn’t know a Bloomberg terminal if it bit them, TD Ameritrade still might be a great fit for you.
Here’s why: they have no account minimums.
That’s a pretty rare feature in the online brokerage world, especially with no strings attached. If you’re looking to get into the investing game with only $100 – or only $10 – TD Ameritrade welcomes you with open arms.
But again, with feeling: if the only reason you’re choosing them is your undying love for the NFL, maybe do a bit more research.
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*This piece is meant only to expand awareness of available financial tools and products and should not be considered an official endorsement of the product or its outcomes by GenFKD.
