A Beginner's Guide: Crypto Investment Via Td Ameritrade

In 2018, TD Ameritrade was one of the first online brokerages to offer investors access to CBOE World Markets and CME's bitcoin futures. The company has also made a strategic investment in ErisX, a cryptocurrency spot and futures exchange. Following the acquisition of TD Ameritrade by Charles Schwab, customers can now access thinkorswim trading platforms and a wide range of wealth management and investment solutions.

TD Ameritrade has been acquired by Charles Schwab

As a Schwab client, you will have access to the thinkorswim trading platform, as well as other trading platforms such as Schwab.com and the Schwab Mobile app. You will also have access to more than 400 physical branches.

In terms of investment choices, Schwab offers several options for gaining exposure to the cryptocurrency market, although spot trading of cryptocurrency is not currently available. These options include cryptocurrency-related ETFs and mutual funds, cryptocurrency coin trusts, cryptocurrency futures, and cryptocurrency stocks.

It is important to note that cryptocurrency is a speculative investment with significant volatility and potential for financial loss. When considering investing in cryptocurrency, it is essential to understand the risks involved and to treat it as a trading opportunity outside of a traditional investment portfolio.

TD Ameritrade customers want a regulated way to access digital tokens

Steve Quirk, executive vice president of Trading & Education at TD Ameritrade, drew parallels between the current state of the cryptocurrency market and the tech sector in the late 1990s, which experienced a similar reckoning. Quirk expressed optimism about the future of digital tokens, noting that the market is now more regulated and better understood, with less extreme volatility.

The appeal of ErisX to TD Ameritrade is that it is a regulated exchange, overseen by the Commodity Futures Trading Commission. This aligns with TD Ameritrade's focus on providing customers with a transparent and regulated platform for investing in digital assets. ErisX is also expected to offer access to a range of crypto products, including bitcoin, bitcoin cash, litecoin, and ethereum, giving customers a wider range of investment options.

TD Ameritrade's investment in ErisX demonstrates its commitment to offering customers a safe and regulated way to access the cryptocurrency market, even as other discount brokerages retreat due to concerns about the lack of regulation.

TD Ameritrade has invested in the cryptocurrency spot and futures exchange, ErisX

ErisX stands out in the market because it "divided the trading and settlement functions using traditional DCM (exchange) and DCO (clearing) models," as stated by ErisX CEO Thomas Chippas. This structure aligns with the expectations of institutional investors from other asset classes, enhancing the relevance and accessibility of these markets.

The DCO license authorizes ErisX to provide clearing services for fully collateralized virtual currency futures. Additionally, ErisX received no-action relief from the CFTC for specific aspects of its offering. The CFTC Division of Clearing and Risk granted this relief due to ErisX's requirement that customers collateralize all transactions, which ensures the ability to cover any potential losses.

TD Ameritrade's investment in ErisX and ErisX's subsequent approvals from the CFTC highlight the growing interest in and legitimacy of the cryptocurrency market.

TD Ameritrade was one of the first online brokerages to offer investors access to CBOE World Markets and CME's bitcoin futures

In late December 2017, TD Ameritrade became one of the first online brokerages to offer investors access to CBOE World Markets and CME's bitcoin futures. This move came at a time when the leading cryptocurrency, bitcoin, was experiencing a surge in value, starting 2017 at around $1,000 and reaching a high of nearly $20,000 by the end of the year. This surge in value created a frenzy among investors, all wanting a piece of the action.

The decision by TD Ameritrade to offer bitcoin futures was a significant development as it provided investors with a new way to invest in and bet on the price of bitcoin. To be eligible to trade the futures, clients of TD Ameritrade needed to have a minimum balance of $25,000, and the margin requirement was set at 1½ times what the Cboe required.

The launch of bitcoin futures by CBOE and CME was seen as a crucial step towards establishing cryptocurrencies as a legitimate asset class and paving the way for exchange-traded funds. TD Ameritrade's move to offer investors access to these bitcoin futures demonstrated its commitment to providing its customers with access to emerging and in-demand investment opportunities.

While TD Ameritrade was one of the first to offer bitcoin futures, it is important to note that the platform has limited options for investing directly in cryptocurrencies. As of 2024, the platform only offers Bitcoin futures, with no support for trading in other cryptocurrencies.

TD Ameritrade customers can now use the thinkorswim platform suite

TD Ameritrade, Inc. has been acquired by Charles Schwab, and all accounts have been moved. As a Schwab client, you will have access to the thinkorswim platform suite, which includes:

• Thinkorswim mobile: A mobile app that provides an optimized trading experience on the go. It includes Level 2 streaming quotes, customizable charting tools, and additional options trading features.
• Thinkorswim web: A streamlined web platform that provides important tools such as charting and analysis tools, streaming Level 2 quotes, more customization options, and robust options trading tools.
• Thinkorswim desktop: A fully customizable software-based platform with elite tools that help you test strategies, develop ideas, and place complex trades.

In addition to the thinkorswim platform suite, you will also have access to Schwab.com and the Schwab Mobile app. These platforms offer a comprehensive portfolio performance view, investing income tools, fundamental research, thematic investing, move money functionality, trading, and more.

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