TD Ameritrade IRAs Review
ConsumersAdvocate.org Rating: 4.4 / 5 (Excellent)
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Founded in 1975 and based in Omaha, Nebraska, TD Ameritrade is a reputable discount brokerage firm that services 11 million clients across the United States through its 360 branches and three online trading platforms. It manages a total of $1 trillion in assets and an average of 500,000 trades daily.
How is TD Ameritrade rated?
Breakdown
4.8/5
IRA Types
4.8/5
Investment Options
4.5/5
Account Features
4.5/5
Fees and Discounts
4.5/5
Reputation & Customer Support
Overall Rating: 4.4 / 5 (Excellent)
TD Ameritrade's combination of free IRAs and a wide array of investment options make it an attractive option for all types of investors. It does not charge any maintenance fees or require a minimum account balance. Nevertheless, customers can choose to invest their IRAs subject to customized portfolios, which do have a minimum account balance requirement depending on the type of financial advising chosen. Its varied investment offerings includes foreign currency exchange, and 300 commission-free ETFs, which set it apart from other discount brokerage firms. The latter also offset its higher-than-average $6.95 commission per equity trade. In addition, its online tracking and trading platforms make TD Ameritrade a well-rounded option for investors.
TD Ameritrade Account Features
Account Features - 4.5 / 5
TD Ameritrade IRA accounts do not require a minimum initial deposit or balance, although investment commission fees still apply. However, investors can choose to invest their IRAs according to a customized portfolio, which do have a minimum investment amount requirement. There are three levels of portfolios: essential, selective, or personalized. TD Ameritrade also offers a wide range of investment options, including foreign currency exchange, which is not common among brokerage firms. In addition, it offers 300 commission-free ETFs, which also stands out from the industry standard.
| Types of IRAs | Rollover IRA Roth IRA Traditional IRA SEP IRA SIMPLE IRA Spousal IRA |
| Account Minimum | 0 |
| Minimum Balance Requirement | 0 |
| Mobile App | Yes |
Investment Options
| Mutual Funds | |
| Index Funds | |
| Stocks | |
| Bonds | |
| Money Market Accounts | |
| CDs | |
| ETFs | |
| Options |
Advisors
TD Ameritrade has three personalized portfolio options:
1) Essential Portfolios- These are automated based on the investor's answers to some questions. They are comprised by five ETF portfolios. Portfolio specialists perform ongoing monitoring of the portfolio and automatically rebalance it when appropriate. It requires an initial investment of at least $5,000 and has a management or advisory fee of 0.30%. These portfolios all have tax-loss harvesting services which entails automatic review on every trading day of the portfolio for any potential tax savings. This feature aims to lower the amount of taxes the IRA owner would owe by up to $3,000.
2) Selective Portfolios - Human advisers invest the IRA funds in mutual funds and ETFs based on the IRA owner's objectives. The advisors will also monitor and rebalance the account as needed. This requires a minimum investment of $25,000 and charges advisory fees between 0.75%-0.90% for the first $100,000, depending on the portfolio and investment amount. Tax-loss harvesting is available only on select portfolios.
3) Personalized Portfolio - comprehensive financial advice customized to the IRA owner's financial needs, which includes a one-on-one relationship with a senior financial consultant and a portfolio consultant. It requires a minimum investment of $250,000 and is subject to a 0.60-0.90% management fee that depends on portfolio and investment amount.
1) Essential Portfolios- These are automated based on the investor's answers to some questions. They are comprised by five ETF portfolios. Portfolio specialists perform ongoing monitoring of the portfolio and automatically rebalance it when appropriate. It requires an initial investment of at least $5,000 and has a management or advisory fee of 0.30%. These portfolios all have tax-loss harvesting services which entails automatic review on every trading day of the portfolio for any potential tax savings. This feature aims to lower the amount of taxes the IRA owner would owe by up to $3,000.
2) Selective Portfolios - Human advisers invest the IRA funds in mutual funds and ETFs based on the IRA owner's objectives. The advisors will also monitor and rebalance the account as needed. This requires a minimum investment of $25,000 and charges advisory fees between 0.75%-0.90% for the first $100,000, depending on the portfolio and investment amount. Tax-loss harvesting is available only on select portfolios.
3) Personalized Portfolio - comprehensive financial advice customized to the IRA owner's financial needs, which includes a one-on-one relationship with a senior financial consultant and a portfolio consultant. It requires a minimum investment of $250,000 and is subject to a 0.60-0.90% management fee that depends on portfolio and investment amount.
Online Experience
TD Ameritrade's website is easy to navigate and offers a wealth of educational information on investments. They have three online research, trading, and tracking tools: the website itself, thinkorswim trading platform, and a mobile trading app.
TD Ameritrade Fees and Penalties
Fees and Discounts - 4.5 / 5
TD Ameritrade does not charge platform, data, account opening, or maintenance fees. It also does not require a minimum account balance. This is a plus for investors as their profits are not affected. In terms of trading costs, TD Ameritrade charges $6.95 per online equity trade, which is higher than those offered by other discount brokerage firms. However, the first 300 non-proprietary ETFs traded are commission-free.
| Management Fee | 0 |
| Trading Fees | $6.95 flat-rate commission on all equity trades. |
| Miscellaneous Fees | Broker-assisted stock and ETF trading is $44.99, while the same for options are $44.99 + $0.75 fee per contract. Generally, investment in mutual funds are not charged a commission. |
TD Ameritrade Financial Strength and Reputation
Reputation & Customer Support - 4.5 / 5
TD Ameritrade enjoys a strong financial reputation, with high creditworthiness ratings from both Standard & Poor's and Moody's. It is also a member of SIPC, or Securities Investor Protection Corporation, which, as its name implies, protects investors against asset loss if TD Ameritrade is declared bankrupt or is in financial trouble.
TD Ameritrade is readily available for its customers with various methods of contact that are available 24/7. It also operates 360 branches nationwide. It's BBB-accreditation, and only two CFPB complaints--unrelated to IRAs--reflect general customer satisfaction.
TD Ameritrade is readily available for its customers with various methods of contact that are available 24/7. It also operates 360 branches nationwide. It's BBB-accreditation, and only two CFPB complaints--unrelated to IRAs--reflect general customer satisfaction.
| Year Founded | 1975 |
| Standard & Poor's Financial Rating | A |
| Moody's Financial Rating | A2 |
| FDIC Member | No |
| SIPC Membership | Yes |
| BBB Rating | A+ |
| Trust Pilot Rating | 5.9 out of 10 |
| Consumer Financial Protection Board (CFPB) Complaints | 2, but unrelated to IRAs. |
| Date Collected | 2018-12-21 |
| Live Help 24/7 | Yes |
| Customer Support Hours | 24/7 |
Contact Methods
| Phone | |
| Chat | |
| Social Media | |
| Text |
FINRA Arbitrations
FINRA lists 70 regulatory events, one civil event and 116 arbitrations for TD Ameritrade.
Company Profile
| Full Name | TD Ameritrade IRAs |
| Company Website | |
| Headquarters | 200 South 108th Avenue, Omaha, NE, 68154 |
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Top Rated
Our Partner
Wide range of IRAs available
- No minimum balance requirement or maintenance fees.
- Comprehensive investment catalog
- Free access to all trading platforms
- $0 commissions on online stock, ETF, and options trades
- 300 commission-free ETFs
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