Choosing A Broker: TDAmeritrade

How do you know which broker is best for you?

Depending on the services you need, you can decide whether to go with a full-service broker or a discount broker. This week, I will give some basics on the discount brokers and today, I am starting with TD Ameritrade (Ticker: AMTD).

Photo by Alan/Falcon, courtesy of flickr

How To Trade: TD Ameritrade offers online, Interactive Voice Response (IVR) telephone and broker-assisted trades. The prices included below apply to market and limit orders.

Commissions: Internet trades for an unlimited number of shares are listed at $9.99, and the latter services will come at a premium. Phone trades are $34.99 and broker assisted trades are $44.99. (View commissions for mutual funds and options)

Account Minimum: The minimum amount to open a non-IRA account is $2,000. The minimum applies to both cash and margin accounts, as well as accounts with options privileges. A minimum of $1,000 is required to open an IRA.

Locations: TD Ameritrade offers services online and at brick and mortar locations. 

FYI: In January 2009, TD Ameritrade purchased thinkorswim.com. Last week, TD Ameritrade settled a lawsuit surrounding marketing of auction-rate securities.

For more information on trading with TD Ameritrade, visit the FAQ page. For TD Ameritrade reviews, visit Viewpoints, Dogs of the Dow and FiLife.

Tomorrow, I will profile E*Trade.

Disclaimer: Brokerage commissions are subject to change, explore them yourself by visiting the broker’s web site or calling customer service for up-to-date information BEFORE you place any trades. The prices provided within this post were compiled on 7/27/09.