Most Traders and Investors make one common mistake while judging a broker; they simply fall for the stuff that’s heightened on the cover. Ask yourself, don’t you find it irresistible to checkout enticing deals that usually pop-up on blogs like this one? Well, there is no harm in gathering more info on special brokerage deals, but those should not be your only criteria for signing up with a broker. Most of you must be aware of discount brokerage TD Ameritrade. They claim to have a straightforward pricing structure, and they usually have some compelling special offers in their deals basket. Let’s figure out if they are really worth what they say?
Sometimes, it isn’t easy to do the hard math to figure out what a broker is really offering. Well, if you go by what TD Ameritrade boasts about, then it shouldn’t be a painful task understanding their trading offer.
So, with TD Ameritrade one can rest assure that they won’t waste your time with complicated pricing model as they love to keep it plain and simple. Well, all that is cover stuff, now let’s dig deeper into their fine print for complete pricing details of their offerings.
I wouldn’t call TD Ameritrade a cheap online discount broker, rather the word ‘affordable’ suits them better. Have a look at what they really charge for Trading Unlimited Shares, both Market and Limit Orders: -
If you want to take advantage of trading and investing in commission-free exchange traded funds there isn’t a better way than opting for a TD Ameritrade account. Believe it, you won’t find a brokerage offering you access to over 100 commission-free ETFs. In addition to that, TD Ameritrade clients get the advantage of access to professional guidance, tools and educational resources.
Apart from a comprehensive list of commission-free exchange traded funds, the pricing structure for limit as well as market orders for unlimited units of ETFs stands same as pricing structure for stock trades.
I really like TD Ameritrade in comparison to leading brokerages especially for trading ETFs and mutual funds, but not for their pricing. Rather, it’s the wide range of funds from leading fund families, topping 13,000 on current count, which makes them a wise choice for a mutual fund investor. So, with TD Ameritrade you can choose to trade mutual funds that closely match your investment objectives, let you diversify across asset classes and keep the risk exposure within your limits. As far as the Pricing structure goes, yet again I would rate them as an affordable option.
TD Ameritrade has been Rated #1 broker for options trading by Barron’s. Options traders find them quite efficient for their information structure and support that help traders quickly spot trading opportunities. As far as the pricing goes, I find them a bit expensive when compared to some other discount brokerages that offer cheap options trading. But then, options trading is a risky venture and its not all that expensive with TD Ameritrade, considering all the tools and support traders get with this broker.
You can also invest in Fixed Income Instruments with TD Ameritrade; these include Bonds, CDs and UITs.
Forex traders can trade in over 100 currency pairs. TD Ameritrade does not charge any additional fee on Non-commission currency pairs that trade in increments of 10,000 units.
Commission currency pairs that trade in increments of 1,000 are subject to a fixed-commission structure based in counter currency units.
TD Ameritrade isn’t the cheapest brokerage out there; the brokerage industry is full of discount brokers competing hard to gain your attention. However, this brokerage house is worth taking a look at, and you should consider comparing their services to other brokers rather than pricing, as without apt tools trading is never easier.