TD Ameritrade

Excellent research and trading tools
Above-average customer satisfaction
Clear commission rates
No minimum balance

More expensive than some
Less personal attention than some
Relatively narrow range of offerings

Our Analysis

February 2009. TD Ameritrade may be a good broker for new investors, since there is no minimum starting balance. Trades are $10, no matter how many shares are traded. TD Ameritrade's website wins praise for its research and analysis tools, including the StrategyDesk, program, which allows investors to test trading strategies theoretically before actually risking money. This broker's customer service is generally praised as well. For those who seek a wide range of investment products and more hands-on attention, reviewers say that Charles Schwab may be a better choice.

Smart Money magazine, Barron's, and Kiplinger's Personal Finance have the best reviews of TD Ameritrade. J.D. Power and Associates' customer satisfaction survey of more than 5,000 "self-directed" investors looks at 15 online brokers including TD Ameritrade.

Our Sources

1. SmartMoney.com

SmartMoney's annual roundup analyzes brokers for their fees, customer service, research tools and more, naming a best and worst broker in each of six categories. TD Ameritrade is named best in research and trading tools; it is one of only two brokerages to be named best in more than one category.

Review: Smart Money's Annual Broker Survey, Neil Parmar, May 20, 2008

2. Barron's

Barron's detailed review covers 23 online brokers, rating each in eight areas, with pros and cons for each company. TD Ameritrade is ranked in 14th place overall, earning low marks for its trading technology, range of offerings and costs. Barron's notes that TD Ameritrade does have plenty of tools available on its website for the long-term investor.

Review: Making It Click: Annual Ranking of the Best Online Brokers, Theresa W. Carey, March 17, 2008

3. Kiplinger Personal Finance Details/Subscribe

Kiplinger's Personal Finance evaluates a dozen brokerages by asking staffers to open accounts and take them for a test drive. TD Ameritrade receives particular praise for its customer service. Editors note, though, that this broker charges "nuisance fees" for some services, including a $75 fee for closing an account and moving it to another broker.

Review: Best of the Online Brokers, Thomas M. Anderson, Nov. 2008

4. J.D. Power & Associates

J.D. Power and Associates annually polls almost 6,000 investors about customer satisfaction with online brokers. For the 2008 survey, TD Ameritrade comes in fifth out of 15 brokers.

Review: 2008 Self-Directed Investor Satisfaction Survey, Editors of J.D. Power and Associates, Oct. 28, 2008

5. ConsumerReports.orgDetails/Subscribe

Consumer Reports reviews 19 online brokers, ranking them for banking and asset management, research and education, and customer support based on hands-on testing. TD Ameritrade is included in the survey, but you must be a subscriber to read the report.

Review: Online Brokers: Better Prices, More Services, Editors of Consumer Reports, June 2007