When it comes to online investment brokers, TD Ameritrade has become a trusted name. The private company was originally established in 1983, so they existed before the idea of online investing came to be. When web-based brokers started emerging in the mid-nineties, TD Ameritrade was one of the first to climb aboard. Now, they are one of the most well-known in the country.
If you’re still thinking about whether or not to sign up, here are the top 5 reasons why I think you should.
#1: Competitive Fees
While TD Ameritrade isn’t the lowest in terms of fees, they are still pretty competitive compared to other companies in the market. They charge a flat rate for every trade, but like other online brokers it will vary. Stock trades cost $9.99 a piece, and they charge an extra $0.75 for every options contract. Broker-assisted trades cost $49.95 each, but they don’t come with any surcharges (something you will often find with other companies).
#2: Established Brand
Not only have they become one of the most respected online brokers in the country, they also existed long before online trading even existed. This gives them an edge in the market, as they have been in the business for more than 30 years.
Because they were in business before the Internet and websites existed, they are more than just an online broker. In addition to some great online tools (which I will get into the next section), they have over 130 branches nationwide. So, you can receive in-person financial investment advice if you prefer.
#3: Comprehensive Trading Platform
While you are paying more in commissions and fees, you get a lot for the extra cost. TD Ameritrade has some of the most comprehensive trading tools in the industry today, and they have very advanced technical tools to help you in the management of your investments and portfolio. Their desktop application (called Thinkorswim) has a lot of detailed charts and graphs that are streamed in real time, and all the data comes from a third-party source.
#4: Perks for More Active Traders
If you have more than $100,000 to invest, you will have the option to join the TD Ameritrade Apex program. This will give you special treatment that won’t be available to other investors.
You will have access to an exclusive team of experts who can not only give you financial advice but can also help you facilitate trades in the market. These people will be called your “Apex team,” and you will have direct access to them via e-mail or telephone. You will also have access to special research data that is only available to Apex members. So, if you have more to invest than the average person, this little perk will be an advantage for you.
#5: Solid Mobile Apps
One of the great things about TD Ameritrade is that they have gone mobile. Not only do they have apps for both the casual investor and the more active trader, but both of them will work on any of these devices:
- Windows phone
While this has received some criticism in other reviews, the fact that they have two mobile apps (one for a different kind of trader) makes sense to me.
The TD Ameritrade Mobile app is more geared towards the casual investor, as it doesn’t have the detailed research data as the other one. So, the TD Ameritrade Mobile Trader app is suited for the more active trader. Both apps are solid, and they will allow you to keep an eye on the market while you’re on the go.
It’s clear that TD Ameritrade is not the cheapest online broker, but you get a lot of great tools that can help you to better understand the performance of the market. But there are some who may not find value in the higher price tag. They might not have the knowledge or experience to understand the finer points of investing. Either way, TD Ameritrade has become one of the most respected names in the industry. If you want to have a brighter future ahead, then consider using TD Ameritrade when you start your career in the stock market.