TD Ameritrade

*Est. $9.99 per trade
Reviewed
March 2011
Email
TD Ameritrade

Pros
  • Excellent research and trading tools
  • Above-average customer satisfaction
  • Clear commission rates
Cons
  • More expensive than some
  • Minimal banking services
  • Fewer investment vehicles than some

TD Ameritrade has moved up in most reviewers' rankings since its 2009 acquisition of ThinkOrSwim. The 2010 Barron's review calls this move a big plus for TD Ameritrade; some of ThinkOrSwim's cutting-edge trading tools are available on the TD Ameritrade website. Trades are $9.99, no matter how many shares are traded. The 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. For those who seek a wide range of financial services and more hands-on attention, reviewers say that Fidelity may be a better choice.

SmartMoney magazine, Barron's and ConsumerReports.org offer the best reviews of TD Ameritrade. Kiplinger.com's 2008 review is useful as well, and J.D. Power and Associates' self-directed investor satisfaction survey includes TD Ameritrade along with 9 other brokers. TopTenReviews.com has a review of this broker as well.

Our Sources

1. SmartMoney.com

This thorough review names the best online brokers in six categories, which makes it ideal for those who want to evaluate brokers based on specific criteria. At the end of the article, a rankings chart includes the category ratings for each broker. TD Ameritrade comes in third out of the 17 brokers in the survey; the review notes that the firm has greatly improved its customer service since 2009.

Review: SmartMoney 2010 Broker Survey, Neil Parmar and J. Alex Tarquinio, May 20, 2010

2. Barron's

For its 2010 rankings, Barron's rates 22 online brokers and shows the results in a table. Short tables also break down the data and list the best brokers for different types of investors. TD Ameritrade is ranked 10th of the 22 brokers, and it is listed as one of the six best brokers for long-term investing. The review notes that TD Ameritrade "is one of the places you can still go for 'one-stop shopping' and is benefiting from its takeover of ThinkOrSwim."

Review: Newest Trading Play: Screen Savings, Theresa W. Carey, March 10, 2010

3. Kiplinger.com

Kiplinger.com evaluates 14 brokerages by asking staffers to open accounts and take them for a test drive. For 2011, TD Ameritrade is tied with Fidelity for first place in the rankings. Editors say "it has better investment choices than ever."

Review: The Best of the Online Brokers for 2011, Elizabeth Ody, Feb. 2011

4. ConsumerReports.org

Seventeen brokerage firms are ranked by ConsumerReports.org based on a survey of online subscribers about their dealings with the brokerages between January 2008 and January 2009. Respondents rated brokers on account service, website, phone service and in-person service.

Review: Brokerage Service Ratings, Editors of ConsumerReports.org, May 2009

5. J.D. Power and Associates

More than 4,000 people who make investment decisions without a financial adviser responded to J.D. Power's annual self-directed investor satisfaction survey in 2010. On overall satisfaction, TD Ameritrade earns 4 stars out of 5. It gets only 3 stars in the areas of commissions and fees and problem resolution.

Review: 2010 Self-Directed Investor Satisfaction Study, Editors of J.D. Power and Associates, Sept. 30, 2010

6. TopTenReviews.com

TopTenReviews.com offers detailed reviews of 16 brokers. The review concludes that TD Ameritrade "offers a good collection of domestic stock opportunities and they have an easy to use fully customizable command center, as well as access to some easy to use research and charting tools."

Review: TD Ameritrade Review, Editors of TopTenReviews.com

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