Faith Morrow
TD Ameritrade is a highly-regarded online brokerage platform that offers a range of investment options, including stocks, bonds, mutual funds, and ETFs. With its recent move to zero-fee trading, competitive fees, and diverse education and research platforms, it has become a popular choice for investors. In this article, we will discuss how to use TD Ameritrade for value investing, covering topics such as opening an account, funding options, and the different trading platforms available. We will also explore the advantages and disadvantages of using TD Ameritrade for value investing and provide insights into its customer service, security, and overall performance as a brokerage platform.
| Characteristics | Values |
|---|---|
| Trading platforms | thinkorswim, TD Ameritrade web and mobile platforms |
| Trading fees | $0 for stocks, ETFs, options; $6.95 for OTC stock trades; $0.65 per contract for options; $2.25 for futures and futures options |
| Customer support | Phone, text, fax, live chat, email, social media, in-person meetings |
| Investment selection | Large selection, including stocks, bonds, mutual funds, futures, forex, IPOs, bitcoin futures |
| Research | Third-party research from the Federal Reserve Economic Database, Center for Financial Research and Analysis, and Morningstar |
| Account fees | No annual or inactivity fee; $75 full transfer fee |
| No-transaction-fee mutual funds | 1,600 |
| Tradable securities | Stocks, bonds, mutual funds, futures, forex, IPOs, bitcoin futures |
| Crypto availability | No direct access to cryptocurrencies; crypto-based products available over-the-counter |
What You'll Learn
TD Ameritrade's thinkorswim platform
The platform provides professional-level trading capabilities on both desktop and mobile, with advanced trading tools, a robust lineup of technical analysis tools and studies, customizable screeners and charting, backtesting capabilities, real-time news, quotes, market heat maps, and more.
One of the standout features of thinkorswim is its customizability. Users can tailor the platform to their specific needs, from the layout of the landing page to the more complex trading strategies they wish to test. The platform also offers Level II streaming quotes, which are not available on the web platform.
In addition, thinkorswim provides access to extensive research and data from over 15 providers, including FRED, Argus, CFRA, Reuters, Vickers, and Morningstar. This enables investors to make more informed decisions and stay ahead of the market.
The platform also offers complex option ordering capabilities, allowing for three or four-legged options trades. This level of sophistication is not commonly found on other trading platforms, making thinkorswim particularly attractive to advanced traders.
With its wide range of tools, customizability, and access to extensive research, TD Ameritrade's thinkorswim platform is an excellent choice for investors looking for a feature-rich and flexible trading platform.
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TD Ameritrade's customer support
The company's website states that opening a new brokerage account takes just a few minutes. The application process involves filling out basic information, such as name and email, and choosing the type of account to open. The website also asks about the applicant's intended use of the account, for example, active trading or buy-and-hold investing. The next step involves providing more personal details, such as date of birth, mailing address, and employment information. The applicant will also be asked about their personal affiliations, for example, whether they work for a registered broker or securities exchange.
The next section requires the applicant to review the information they provided for accuracy. After confirming the information is correct, they can continue to the next section, which contains technical information that the applicant must agree to. This includes PDF files of the account handbook, client agreement, an IRA account agreement disclosure, and a business continuity plan statement.
The final step involves creating a secure login, including a username, password, and security questions. Once this is complete, the account is open, and the user can edit their account preferences, pick trading features, and fund their account.
TD Ameritrade also provides detailed instructions for the funding options available, including electronic funding, mailing a check, depositing a stock certificate, and external securities transfer. The company recommends electronic funding for greater accuracy and convenience. This involves linking the brokerage account to a checking or savings account to transfer money through an automated clearing house (ACH) transaction.
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TD Ameritrade's investment selection
TD Ameritrade offers a large investment selection, with something for everyone. The company provides a range of tradable asset classes, from traditional stocks, mutual funds, and ETFs to American depositary receipts (ADRs), penny stocks, and initial public offerings (IPOs).
TD Ameritrade has over 13 million client accounts, executing more than 3 million daily average revenue trades per day, one-third of which come from mobile devices. The company has a history of innovation, dating back to its start in 1975, and today its team is committed to carrying that forward.
TD Ameritrade offers two main trading platforms; the web platform and Thinkorswim. The web platform has all you may need to screen, research, and trade bonds, stocks, options, and ETFs. Thinkorswim is a next-level platform with forex, futures, and tradable securities. This platform gives access to technical analysis tools and advanced trading capabilities.
The web platform is very intuitive and easy to use, with additional features like streaming news, third-party research, and trading watch lists. Thinkorswim, on the other hand, offers customization, charting, and analytical tools that are readily available on both mobile and desktop. It also features access to trading specialists and superb customer service to help answer any questions you might have quickly and accurately.
TD Ameritrade also provides comprehensive learning resources, including classes in technical analysis, income investing, options, trading strategies, and investment basics. Its educational resources are tailored for beginners and advanced traders, offering courses like Fundamentals of Futures Trading or Options for Volatility.
In addition, TD Ameritrade offers a simple web-based trading interface with a corresponding mobile app. The TD Ameritrade Mobile app features portfolio monitoring, market news, real-time quotes, and price alerts. The app also includes educational videos on stocks, options, and investing strategies, as well as social media integration and third-party research.
With its full range of investment options, user-friendly platforms, and access to research and educational tools, TD Ameritrade is a great choice for both novice and experienced investors.
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TD Ameritrade's educational resources
TD Ameritrade provides a wide range of educational resources for investors. The company offers free research from highly reputable third-party sources, including the Federal Reserve Economic Database, Center for Financial Research and Analysis, and Morningstar. This provides investors with valuable insights and data to make informed investment decisions.
In addition to the research materials, TD Ameritrade offers comprehensive trading education through its thinkorswim® trading platforms. These platforms are available on desktop, web, and mobile, providing investors with intuitive tools and resources to enhance their trading knowledge and skills.
TD Ameritrade also excels at offering low-cost and low-minimum funds, making it an ideal platform for beginner investors. The company provides over 5,300 mutual funds with expense ratios of 0.50% or less and over 3,600 funds with investment minimums of $100 or less. This makes it easier for new investors to get started without requiring a large initial investment.
Furthermore, TD Ameritrade provides a virtual trading simulator called paperMoney, which is available for free through its trading platforms and the Mobile Trader app. This platform offers a risk-free environment for investors to practice and improve their trading skills before entering the real market.
Additionally, TD Ameritrade has more than 250 branches nationwide, offering in-person support and education to investors who prefer a more hands-on approach. The company's customer support is easily accessible through various channels, including phone, text, email, live chat, and social media, ensuring that investors can get timely assistance as they navigate the platform and expand their investment knowledge.
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TD Ameritrade's mobile app
The app provides real-time streaming quotes, charts, Level II quotes, and news updates, offering a comprehensive view of the markets. It also allows you to manage your portfolio seamlessly by trading stocks, options, ETFs, and monitoring orders. You can also transfer funds, deposit cheques through the mobile cheque deposit feature, and authenticate transactions securely using Face Unlock or fingerprint identification.
The app keeps you attuned to significant market movements and news breaks with price alerts and customizable notifications. It also offers access to third-party research, on-demand videos from Thomson Reuters and CNBC, and comprehensive educational content. Integration with social media signals and Twitter feeds provides a diverse range of insights.
With the TD Ameritrade Mobile app, you can stay on top of your financial goals with real-time access to your account balances, positions, transaction history, tax documents, and statements. The user experience can be customized by tailoring position and watch list screens according to your preferences.
The app empowers your trading experience with mobility and confidence, providing the same features as the web-based platform, including access to equity, trading options, quotes, real-time balances, fund transfers, and trading news. The app is available for both iOS and Android devices, offering a streamlined and user-friendly interface.
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Frequently asked questions
To open a TD Ameritrade account, you need to fill out an application form on their website. You will need to provide basic information such as your name, email, and Social Security number. You will also need to choose the type of account you want to open and answer questions about your investment intentions and personal affiliations. Once you have completed the application, you will need to review your information for accuracy and agree to the technical information provided. Finally, you will create a secure login, and your account will be open!
There are several ways to fund your TD Ameritrade account. The most convenient and recommended method is electronic funding, where you link your brokerage account to your bank account to transfer money through an automated clearing house (ACH) transaction. You can also fund your account by mailing a check or depositing a stock certificate. Additionally, you can transfer bonds, stocks, and ETFs from another brokerage account to your TD account without selling them first.
TD Ameritrade offers commission-free trading for stocks, options, and ETFs. However, there are other fees associated with the platform. For example, there is a $6.95 fee per trade for OTC stock trades and a $25 fee for broker-assisted trades. If you want to do margin or options trading, you need a minimum of $2,000 in your account. There is also an outbound transfer fee of $75 for each transfer you make.
TD Ameritrade offers two main trading platforms: the web platform and Thinkorswim. The web platform provides the tools you need to screen, research, and trade bonds, stocks, options, and ETFs. Thinkorswim is a more advanced platform that offers forex, futures, and tradable securities. It also provides access to technical analysis tools and advanced trading capabilities.
When choosing stocks to buy on TD Ameritrade, you should consider the price and valuation. Look for stocks that are undervalued by measuring the price-to-earnings ratio. Evaluate the company's financial health by reviewing its financial reports and paying attention to revenue growth and debt.
