Regrettably, TD Ameritrade users and investors in the US don’t have direct access to Ethereum, Bitcoin, or other cryptocurrencies via their trading platform.
Nevertheless, TD Ameritrade provides indirect means for clients to gain exposure to cryptocurrencies. The investment options are:
- Grayscale Ethereum Trust (ETHE): an index that tracks ETH price
- Coinbase (COIN): an indirect exposure to the cryptocurrency industry
- Grayscale Bitcoin Trust (GBTC): an index that tracks BTC price
Even though the investment alternatives above offer some exposure to cryptocurrencies assets, this isn’t recommended to invest since investors can’t withdraw Ethereum or Bitcoin to their wallet or storage. Therefore, you ultimately don’t “own” the asset.
TD Ameritrade Overview
TD Ameritrade has a $0 commission on trades, top-notch educational programming, a user-friendly mobile app, and an enhanced trading platform. It provides a full-service brokerage experience that serves new investors’ requirements to the needs of experienced day traders taking positions in various asset classes. New investors, specifically, will benefit from this broker’s educational content and ease of use.
Even though Charles Schwab bought the broker, TD Ameritrade still operates independently. Below, we’ll look at how this broker ranks as an independent brokerage, so you’ll have enough information to help you determine if it’s a perfect fit for your investing requirements.
Advantages And Disadvantages
Advantages
- Undoubtedly, TD Ameritrade is the best online broker to learn the fundamentals of investing in the stock market. The broker provides unmatched in-depth education in the industry, comprising “ticker-tape” – an online digital magazine, “thinkmoney” – a quarterly periodical, physical instruction through live events, day-to-day streaming live market review on the TD Ameritrade Network, virtual learning experiences in webcasts, online workshops, instructional videos, and courses.
- The broker’s user interface offers users existential, self-paced learning where content is completely blended into the experience. TD Ameritrade puts the user at the centre of its design, promoting convenience and a personalised and seamless experience.
- Whether you’re a day trader or a passive investor, the broker’s range of trading platforms is excellent for all investors. Its mobile and web-based platform promote simplicity and ease of use. Additionally, the thinkorswim site offers robust abilities for professional traders.
Disadvantages
- Fractional shares enable investors with inadequate capital to add high-cost securities to their portfolios. The broker doesn’t currently provide fractional shares purchase. Schwab provides fractional shares. Therefore, the existing TD Ameritrade clients may benefit from this feature as the two firms merge.
- Although the broker has a line-up of investments products, close rivals have more cost-efficient options. Investors using margin in their trading should be aware that the broker’s margin rates aren’t as competitive as their competitors.
- TD Ameritrade doesn’t automatically sweep uninvested funds into a cash market fund, unlike a few of its rivals. Nevertheless, it offers an alternative to joining the sweep program or holding funds in an FDIC-Insured account.
Who Is The TD Ameritrade Platforms For?
Since TD Ameritrade is among the largest online brokers in the United States, it provides several platforms aimed at various expertise levels. The standard mobile app and web-based platforms are straightforward for active and passive investors.
The robust thinkorswim is probably the best bet for day traders and casual traders because of its advanced analytics, charting tools, and extensive screening abilities. Overall, day traders, casual traders, active investors, and passive investors will love the TD Ameritrade trading platforms range and overall offering.
Trade Experience
It’s pretty simple to trade on the web platform thank to the ability of users to key in their ticker symbol and place their orders effortlessly. Apart from fixed income, the web and mobile app platforms provide similar asset classes and support identical order types, stop-limit orders included.
Furthermore, every platform enables users to stage orders for a future entry. TD Ameritrade web and thinkorswim allow conditional orders that enable users to set triggers depending on price movements.
Types Of Orders
The broker’s customers can key in a broad range of order types on each platform. While all TD Ameritrade’s platforms allow trailing stops and stop-limit orders, only web and thinkorswim platforms enable conditional orders (for instance, one-cancels-the-other) and placing several orders concurrently. Investors can also select a particular tax lot when entering orders.
Mobile Trade Experience
If TD Ameritrade is the online broker of your choice, you’ll discover that trading in the standard mobile app is much simpler compared to the web. There’s a big green “trade” button on the top right side of the user’s screen. Keying in symbols and trading is oversimplified but effective, and throughout the process, the broker has watchlists and streams real-time data. Although the mobile app doesn’t support the ability to draw on charts, you can effortlessly trade directly from the charts.
Trading Technology
Quick execution is a priority for investors since the markets move rapidly. Order routing is a process where orders go from end-users to an exchange. Orders may go directly to exchange from clients or pass through brokers first to an exchange. A broker’s method to route your orders determines the probability of getting the best price when your trade order is placed.
Usability
The broker focuses on the user experience, making its platforms seamless and straightforward. TD Ameritrade employs innovation to transform a client’s experience by placing the client at the design centre and optimising their personal experience. The mobile apps, thinkorswim, and TD Ameritrade web are highly customisable depending on the client’s special interests.
TD Ameritrade Charges
You’ll pay trading fees when you purchase cryptocurrency exposure through TD Ameritrade. The good thing is that the broker is entirely commission-free, which means clients don’t pay fees to trade on the TD Ameritrade platform.
What Are Alternatives To TD Ameritrade?
eToro is among the most reliable and secure alternatives to big brokerage companies such as TD Ameritrade for cryptocurrency. eToro’s crypto exchange is strictly regulated in the US and is a safe way to purchase and sell more than thirty varying digital assets.
eToro is also among the few exchanges that provide $0 commission on crypto trading.
1. Charles Schwab
This is a New York Stock Exchange-listed United States discount broker established in 1971.
The financial authorities regulating Charles Schwab include the Financial Industry Regulatory Authority (FINRA) and the United States Securities and Exchange Commission (SEC).
As a result, the broker is ideal for traders and investors searching for a legal broker with excellent customer service, low fees, and solid research.
2. E*TRADE
E*trade is a United States-based stockbroker established in 1982. It’s regulated by financial regulators, including the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC).
E-Trade is a secure stockbroker since it has a banking background, an extensive track record, discloses its financials, is regulated by financial regulators in the US, and is listed on the stock exchange.
3. Merrill Edge
The Bank of America (BofA) established this US-based stockbroker in 2010. BofA purchased Merril Lynch during the financial crisis in 2008, and the logic behind starting Merrill Edge was to merge its online investing division with the investment expertise of Merrill Lynch.
Merrill Edge provides United States stocks, bonds, options, and ETFs. The Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) oversee its activities, as they do the activities of the other brokers in this list.
This stockbroker is secure because it discloses its financials and operates under the guidelines set by US financial regulators. Additionally, its parent firm is a bank with an extensive track record and excellent reputation.
Merrill Edge is ideal for traders and investors who need simple platforms, quick account opening, and low fees.
4. Fidelity
This is a United States stockbroker established in 1946. Like the rest of the stockbrokers above, it’s regulated by FINRA and the SEC. Most importantly, it has a long track record as one of the best stockbrokers in the US.
Fidelity is ideal for traders and investors searching for excellent trading platforms and solid research.
