<p><img src="https://static1.businessinsider.com/image/5fb58f5350e71a00115560b3-1667/TD%20Ameritrade%20Brokerage%20Review%204x3.png" border="0" alt="TD Ameritrade Brokerage Review 4x3" data-mce-source="TD Ameritrade; Gilbert Espinoza/Business Insider"></p><p></p><bi-shortcode id="disclaimer" class="mceNonEditable" data-type="pfi"></bi-shortcode><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul class="summary-list"><li>The TD Ameritrade platform offers commission-free trades on stocks, ETFs, and options.</li><li>TD Ameritrade is best for active traders looking for multiple trading platforms and tools.</li><li>The brokerage offers an automated investment account, but you'll need at least $500 to sign up.</li></ul><aside class="breakout-box headline-regular"><p><strong>Updated on 2/05/2021:</strong> We updated this review with a new section on TD Ameritrade's Better Business Bureau rating and reputation as a company. We're currently adding information on trustworthiness to all of Personal Finance Insider's reviews.</p></aside><bi-shortcode id="table-of-contents-sticky" class="mceNonEditable" data-type="h2">Table of Contents: Masthead Sticky</bi-shortcode><h2>Is TD Ameritrade right for you'</h2><p>Whether you're investing for short- or long-term savings goals, you'll have a long list of options to choose from in the <a href="https://www.businessinsider.com/personal-finance/what-is-a-brokerage-account-first-step-towards-investing" target="_blank" rel="noopener">brokerage</a> and robo-advisor realm. Most brokers offer similar perkscommission-free trades, low minimum opening deposits, and investing tools and resourcesbut you'll need to pay attention to other features such as account types, investment choices, trading platforms, and customer service.</p><p>TD Ameritrade could be a great fit for you if you value DIY (or active) trading, as opposed to passive investing. The brokerage offers several trading platforms and investment tools as well as market analysis from Morningstar Investment Management professionals. TD Ameritrade also offers several investment choices, including no-transaction-fee <a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-mutual-funds-step-by-step-guide" target="_blank" rel="noopener">mutual funds</a>. The broker currently has more than 13,000 mutual funds.</p><p>Andfor the more <a href="https://www.businessinsider.com/passive-investing" target="_blank" rel="noopener">passive-minded investors</a>TD Ameritrade has an automated investment management account called Essential Portfolios. The company offers two other managed portfolios: Selective Portfolios and Personalized Portfolios.</p><p>As for trading fees, you'll pay $0 commissions for US-listed stock, ETF, and options trades. However, options contracts will cost you $0.65 per contract.</p><p>Charles Schwab acquired TD Ameritrade on On October 6, 2020. TD Ameritrade will provide the same services, but the company will merge its product offerings with Schwab's within the next 36 months, according to its website.</p><aside class="quick-tip headline-regular"><p><strong>Bottom Line: TD Ameritrade is great for active traders interested in utilizing multiple trading platforms. The brokerage offers both self-directed and automated investing accounts, so it could also be suitable for those looking for managed portfolios.</strong></p></aside><p></p><table style="width: 100%; border-collapse: collapse; height: 353px;" border="1" cellpadding="10px"><tbody><tr style="height: 204px;"><td style="width: 50%; text-align: center; height: 204px;" colspan="2"><img src="https://static2.businessinsider.comhttps://static2.businessinsider.com/image/5fad52678a86ff001880b26e-500/td-ameritrade.png" border="0" alt="td ameritrade" data-mce-source="TD Ameritrade"></td></tr><tr style="height: 21px;"><td style="width: 50%; text-align: left; height: 21px;"><strong>Editor's rating</strong></td><td style="width: 50%; text-align: center; height: 21px;">4.8 out of 5</td></tr><tr style="height: 21px;"><td style="width: 50%; text-align: left; height: 21px;"><strong>Trading Fees</strong></td><td style="width: 50%; text-align: center; height: 21px;">0%</td></tr><tr style="height: 21px;"><td style="width: 50%; text-align: left; height: 21px;"><strong>Account minimum</strong></td><td style="width: 50%; text-align: center; height: 21px;">$0 ($500 for robo-advice)</td></tr><tr style="height: 65px;"><td style="width: 50%; text-align: left; height: 65px;"><strong>Promotion</strong></td><td style="width: 50%; text-align: center; height: 65px;">Earn a $50 referral reward if the individual you referred opens an account with $3,000 within 90 days of referral.</td></tr><tr style="height: 21px;"><td style="width: 50%; text-align: center; height: 21px;" colspan="2"><a href="https://www.tdameritrade.com/home.page" target="_blank" rel="noopener">Open Account</a></td></tr></tbody></table><h2>TD Ameritrade pros and cons</h2><h3>Pros</h3><ul><li>Free commissions on stock, ETF, and option trades</li><li>No minimum account size requirement</li><li>Large investment selection</li><li>Research and educational resources available</li></ul><h3>Cons</h3><ul><li>Trading platforms can be difficult to navigate</li><li>Robo-advice and managed portfolios are more expensive</li></ul><h2>How does TD Ameritrade compare to other investment platforms'</h2><table style="width: 100%; border-collapse: collapse; height: 324px;" border="1" cellpadding="10px"><tbody><tr style="height: 105px;"><td style="width: 33.3333%; height: 105px;"><a href="https://oc.brcclx.com/t/'lid=26669629&cr=26904&last_updated=1586288561" target="_blank" rel="nofollow noopener sponsored"><img src="https://static2.businessinsider.comhttps://static2.businessinsider.com/image/5fad52678a86ff001880b26e-500/td-ameritrade.png" border="0" alt="td ameritrade" data-mce-source="TD Ameritrade"></a></td><td style="width: 33.3333%; height: 105px;"><img src="https://static1.businessinsider.com/image/5fad53118a86ff001880b276-500/merril-lynch.png" border="0" alt="merril lynch" data-mce-source="Merrill Lynch"></td><td style="width: 33.3333%; height: 105px;"><img src="https://static3.businessinsider.com/image/5fad52544044a00018f76299-500/fidelity.png" border="0" alt="fidelity" data-mce-source="Fidelity Investments"></td></tr><tr style="height: 88px;"><td style="width: 33.3333%; text-align: center; height: 88px;"><p><strong>Min. Investment</strong></p><p>$0</p></td><td style="width: 33.3333%; text-align: center; height: 88px;"><p><strong>Min. Investment</strong></p><p>$0</p></td><td style="width: 33.3333%; text-align: center; height: 88px;"><p><strong>Min. Investment</strong></p><p>$0</p></td></tr><tr style="height: 110px;"><td style="width: 33.3333%; text-align: center; height: 110px;"><p><strong>Trading Fees</strong></p><p>0% (0.30% for Essential Portfolios)</p></td><td style="width: 33.3333%; text-align: center; height: 110px;"><p><strong>Trading Fees</strong></p><p>0% (0.45% to 0.85% for robo-advice)</p></td><td style="width: 33.3333%; text-align: center; height: 110px;"><p><strong>Trading Fees</strong></p><p>0% (up to 0.35% for automated investment advice)</p></td></tr><tr><td style="width: 33.3333%; text-align: center;"><p><strong>Investment choices</strong></p><p>Stocks, ETFs, options, mutual funds, futures, forex, cryptocurrencies, IPOs, and bonds</p></td><td style="width: 33.3333%; text-align: center;"><p><strong>Investment choices</strong></p><p>Stocks, ETFs, options, mutual funds, and bonds</p></td><td style="width: 33.3333%; text-align: center;"><p><strong>Investment choices</strong></p><p>Stocks, ETFs, options, mutual funds, bonds, CDs, and IPOs</p></td></tr><tr style="height: 21px;"><td style="width: 33.3333%; text-align: center; height: 21px;"><a href="https://www.tdameritrade.com/home.page" target="_blank" rel="noopener">Open an account</a></td><td style="width: 33.3333%; text-align: center; height: 21px;"><a href="https://www.merrilledge.com/investing/online-brokerage-account" target="_blank" rel="noopener">Open an account</a></td><td style="width: 33.3333%; text-align: center; height: 21px;"><a href="https://www.fidelity.com/trading/overview'imm_pid=700000001008518&immid=100760&imm_eid=ep2027752755&ds_rl=1005315&gclid=CjwKCAiA-f78BRBbEiwATKRRBDMSjZzAAiOTGhbFIQQiSdK7xraxbqRmM3mAlWqNKYLfMk8poNDyuxoCABgQAvD_BwE&gclsrc=aw.ds" target="_blank" rel="noopener">Open an account</a></td></tr></tbody></table><h2><strong>Ways to invest with TD Ameritrade</strong></h2><h3><strong>Standard brokerage accounts</strong></h3><p>TD Ameritrade's <a href="https://www.businessinsider.com/personal-finance/best-online-brokerages-for-beginners" target="_blank" rel="noopener">brokerage accounts</a>require no minimum opening deposit and include commission-free trades on US-listed stocks, ETFs, and options. However, options contracts cost $0.65 per contract.</p><p>This online brokerage offers trading accounts for individuals, joint tenants with rights of survivorship, tenants in common, community property, and guardianships or conservatorships.</p><p>TD Ameritrade's investment selection consists of stocks, <a href="https://www.businessinsider.com/what-is-a-corporate-bond" target="_blank" rel="noopener">bonds</a>, mutual funds, ETFs, options, futures, annuities, IPOs, foreign investments (Forex), and other fixed income securities.</p><h3><strong>Managed portfolios</strong></h3><p>TD Ameritrade's managed portfolios could be a great fit if you're looking for professionally built and goal-oriented portfolios. The brokerage offers three options: Essential Portfolios, Selective Portfolios, and Personalized Portfolios.</p><p>Each account features regular portfolio monitoring, asset allocation, and portfolio rebalancing, but the portfolios differ in many ways.</p><p>Essential Portfolios include automated investing, as well as financial consultant access. These portfolios are great for those who prefer <a href="https://www.businessinsider.com/what-is-a-robo-advisor" target="_blank" rel="noopener">robo-advice</a>, but be prepared for a $500 minimum investment and 0.30% advisory fee.</p><p>Selective Portfolios also offers access to financial consultants, but these accounts include a larger range of goal-based portfolios. You'll also need at least $25,000 to get started.</p><p>Personalized Portfolios require a significantly higher minimum investment$250,000, to be exactbut they offer a portfolio consultant who manages and rebalances your portfolio. These accounts also utilize recommendations from professionals at Morningstar Investment Management, LLC.</p><h3><strong>Retirement accounts</strong></h3><p>TD Ameritrade offers several retirement accounts for individuals and small businesses. The brokerage's current selection includes <a href="https://www.businessinsider.com/personal-finance/best-ira-accounts" target="_blank" rel="noopener">traditional IRAs</a>,rollover IRAs, <a href="https://www.businessinsider.com/personal-finance/best-roth-ira-accounts" target="_blank" rel="noopener">Roth IRAs</a>, SEP IRAs, solo 401(k)s, SIMPLE IRAs, and pension or profit plans.</p><p>In addition, each account comes without minimum opening deposits or maintenance fees. Roth and traditional <a href="https://www.businessinsider.com/personal-finance/ira-vs-401k" target="_blank" rel="noopener">IRAs</a> feature educational resources, retirement tools, and access to investing and market research.</p><h3><strong>Education savings accounts</strong></h3><p>You can also save for college and educational expenses with TD Ameritrade's 529 college savings plans and Coverdell Education Savings Accounts (ESAs). The Coverdell ESA offers tax-free distributions, with a $0 minimum deposit and $2,000 annual maximum contribution limit.</p><p>The 529 plan provides several investment choices, including domestic equity, real estate, international equity, international bond, <a href="https://www.businessinsider.com/personal-finance/best-money-market-accounts" target="_blank" rel="noopener">money market</a> and fixed income investments.</p><p>TD Ameritrade also offers custodial accounts that allow minors to own cash or securities.</p><h3><strong>Specialty accounts</strong></h3><p>TD Ameritrade offers several other specialty accounts, including the following:</p><ul><li>Trusts</li><li>Partnership accounts</li><li>Limited partnership accounts</li><li>Investment club accounts</li><li>Limited liability accounts</li><li>Corporate accounts</li><li>Sole proprietorship accounts</li><li>Non-incorporated accounts</li><li>Small business plans</li></ul><div><style> #div-gpt-ad-1579713650634-0 > div > iframe { width: 100% !important; min-width: 300px; max-width: 595px; } </style><script async src="https://securepubads.g.doubleclick.net/tag/js/gpt.js"></script><script> window.googletag = window.googletag || { cmd: [] }; googletag.cmd.push(function () { googletag.defineSlot('/1035677/Business_Insider_', [[1, 1], [300, 139], [595, 139], [300, 250], [595, 250], [300, 360], [595, 360], [300, 475], [595, 475]], 'div-gpt-ad-1579713650634-0') .addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); googletag.pubads().setTargeting('category', ["Banking"]).setTargeting('subcat', ["Savings Accounts"]).setTargeting('post_id', []) .setTargeting('post_url', []) .setTargeting('keyword', []) .setTargeting('company-product', []) .setTargeting('post_title', []); googletag.enableServices(); }); </script><!-- /1035677/Business_Insider_ --><div id="div-gpt-ad-1579713650634-0"> <script> googletag.cmd.push(function () { googletag.display('div-gpt-ad-1579713650634-0'); }); </script></div></div><h2><strong>Is TD Ameritrade trustworthy'</strong></h2><p>To ask if TD Ameritrade is trustworthy is to also ask if <a href="https://www.businessinsider.com/personal-finance/charles-schwab-brokerage-account-review" target="_blank" rel="noopener">Charles Schwab</a> is trustworthy. Charles Schwab acquired TD Ameritrade on October 6, 2020, so the two companies are currently merging their businesses. Both companies have received high ratings with the Better Business Bureau, though.</p><p>The BBB rates companies using a grade scale range of A+ to F. Currently, TD Ameritrade <a href="https://www.bbb.org/us/ne/omaha/profile/financial-planning-consultants/td-ameritrade-0714-105000047" target="_blank" rel="noopener">has a B rating</a>, and Charles Schwab has an A+ rating. Both grades indicate that TD Ameritrade and Schwab both interact fairly well with customers.</p><p>But these ratings aren't always the same for every app. For instance, <a href="https://www.businessinsider.com/personal-finance/webull-investing-review" target="_blank" rel="noopener">Webull</a> currently has an F rating due to its large number of customer complaints. The BBB also gave Webull this rating since it has concerns about its business practices.</p><p>Currently, TD Ameritrade, <a href="https://www.businessinsider.com/personal-finance/robinhood-investing-review" target="_blank" rel="noopener">Robinhood</a>, and several other investment apps are facing lawsuits for restricting trades on Gamestop (GME), AMC Entertainment (AMC), and other stocks that surged due to a Reddit forum called <a href="https://www.businessinsider.com/wallstreetbets-fastest-growing-subreddit-hits-58-million-users-2021-1" target="_blank" rel="noopener">r/WallStreetBets</a>. You can see an updated list of its current <a href="https://www.tdameritrade.com/td-ameritrade-trading-restrictions-stocks.page" target="_blank" rel="noopener">trading restrictions here</a>.</p><p>The brokerage has also faced numerous other legal troubles over the years. In 2011, the US Securities and Exchange Commission (SEC) forced TD Ameritrade to reimburse $10 million to customers it failed to warn about the dangers of a mutual fund known as the Reserve Yield Plus Fund. In 2020, the investment app was accused of failing to warn customers about the risk in oil investments, but it beat all oil-related customer lawsuits.</p><p>If you're not sure about the brokerage, consider <a href="https://www.businessinsider.com/personal-finance/what-are-the-best-investment-apps" target="_blank" rel="noopener">the best investment app alternatives</a> to TD Ameritrade.</p><h2><strong>What is TD Ameritrade'</strong></h2><p>TD Ameritrade is an online brokerage providing investment solutions to individuals and small businesses. The company offers a vast selection of wealth-building products, including self-directed brokerage accounts, professionally managed and automated investment accounts, <a href="https://www.businessinsider.com/personal-finance/things-did-catch-up-on-retirement-savings-2020-10" target="_blank" rel="noopener">retirement</a> accounts, education accounts, and speciality accounts.</p><p>TD Ameritrade also offers multiple trading platforms. These mainly include its classic web platform, next generation web platform, and thinkorswim trading platform. All platforms provide mobile apps and trading resources.</p><p>Based in Omaha, Nebraska, TD Ameritrade traces its establishment back to 1975. In fact, the company's role in the financial services industry hasn't been without recognition. For nine consecutive years, StockBrokers.com recognized TD Ameritrade as the #1 brokerage for platforms and tools.</p><p>Charles Schwab acquired TD Ameritrade on October 6, 2020. TD Ameritrade has announced that it will conduct business as usual but plan to combine its business with Schwab's over the next 18-36 months.</p><p><em>Rickie Houston is a wealth-building reporter at Personal Finance Insider who covers investing, brokerage, and wealth-building products.</em></p><bi-shortcode id="related-content-module" class="mceNonEditable" data-type="more-investing-coverage" data-sheetname="More Investing Coverage">Related Content Module: More Investing Coverage</bi-shortcode><p><a href="https://www.businessinsider.com/personal-finance/td-ameritrade-brokerage-review#comments">Join the conversation about this story »</a></p>
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