Is TD Ameritrade a Good Broker? Everything You Need to Know in 2025

TL;DR: TD Ameritrade is now part of Charles Schwab but was one of the best brokers around

If you’re wondering whether TD Ameritrade is a good broker the short answer is it was excellent! However, Charles Schwab acquired TD Ameritrade in October 2020 and all TD Ameritrade clients are now being transitioned to Schwab accounts. If you’re considering opening a new account, you’d be better off heading directly to Charles Schwab instead.

Before the acquisition, TD Ameritrade was consistently ranked among the top brokers in the industry, earning a perfect 5.0 overall score in its final review as a standalone brokerage in 2023. It was particularly renowned for its outstanding trading platforms, educational resources, and customer service.

The Current Status of TD Ameritrade

Let’s get this out of the way first – TD Ameritrade isn’t really TD Ameritrade anymore. Charles Schwab bought the company for a whopping $26 billion back in 2020. While both companies continued to operate separately for a while, Schwab is now in the process of moving all TD Ameritrade accounts to Schwab.

If you already have a TD Ameritrade account, you’ll receive a notification about three months before your account is scheduled to transfer. But if you’re thinking about opening a new account, you might as well just go straight to Charles Schwab.

What Made TD Ameritrade Stand Out?

Before the acquisition TD Ameritrade consistently ranked among the best brokers in the industry. It held the #1 spot in StockBrokers.com’s rankings in 2021 2020, 2019, 2017, 2015, 2014, 2013, 2012, and 2011. Pretty impressive track record!

Here’s what made TD Ameritrade shine:

1. Excellent Trading Platforms

TD Ameritrade offered two outstanding platforms

• thinkorswim desktop: A powerhouse for active traders with advanced charting capabilities, 400+ technical studies, paper trading, earnings analysis tools, backtesting features, and much more.
• thinkorswim web: A simpler but still powerful web-based platform for quick account management and trading.

The good news is that Schwab plans to keep the thinkorswim platforms available after the merger is complete.

2. Top-Notch Mobile Apps

TD Ameritrade offered two different mobile apps:

• TD Ameritrade Mobile: Designed for casual investors with a customizable dashboard, streaming watchlists, and comprehensive stock quotes.
• thinkorswim Mobile: Built for active traders with all 400+ indicators from the desktop platform and cloud-synced preferences.

Both apps were feature-rich and great for trading, though they did have a bit of a learning curve.

3. Comprehensive Research

TD Ameritrade provided extensive research tools including:

• The TD Ameritrade Network: A live streaming financial network broadcasting every day from 8am to 5pm Eastern.
• ResearchTeam reports: Consolidating third-party research into single rankings.
• Market Edge: Providing insights into technical analysis.
• Social sentiment data: Tracking mentions on Twitter and providing sentiment rankings.

4. Industry-Leading Education

TD Ameritrade was particularly strong in educational resources, making it our top pick for beginners in 2023. Their offerings included:

• Learning Center: Organized courses with quizzes and over 200 videos with progress tracking.
• Webinars and Educational Sessions: Hundreds offered each month.
• thinkMoney Magazine: Their own quarterly publication focusing on education.
• The Ticker Tape: A blog covering market commentary and analysis.

5. Zero-Commission Trading

Like many brokers today, TD Ameritrade offered $0 stock and ETF trades. Options trades cost $0.65 per contract, which was competitive but not the absolute cheapest in the industry.

Pros and Cons of TD Ameritrade

Pros

• Excellent suite of trading platforms
• Wealth of third-party research and reliable in-house content
• Educational content for all experience levels
• Industry-leading thinkorswim platform for active traders
• No minimum deposit requirement

Cons

• Though customer service was superior, other brokers had friendlier design and writing
• No fractional shares trading
• No cryptocurrency trading
• $6.95 fee for penny stocks (despite $0 commission on regular stocks)

TD Ameritrade’s Investment Options

TD Ameritrade provided most of what you’d expect from a full-service brokerage:

One notable limitation was that TD Ameritrade customers could only trade U.S. and Canadian-listed securities, with no access to international markets.

Fees and Pricing

TD Ameritrade’s fee structure was competitive:

• Stock and ETF trades: $0
• Options: $0.65 per contract
• Penny stocks: $6.95 flat-rate fee
• Mutual funds: $49.95 to buy, $0 to sell (some exceptions cost $74.95 to buy)
• NTF funds held less than 180 days: $49.99 short-term redemption fee

There was no minimum deposit requirement and no inactivity fees, making it accessible for investors of all levels.

What Should Current TD Ameritrade Customers Do?

If you’re a current TD Ameritrade customer, you have an important decision to make:

1. Stay with Schwab: Many of TD Ameritrade’s best features (like thinkorswim) will be available at Schwab. If you’re happy with the merger, you can simply wait for your account to be transitioned.

2. Switch to another broker: If you prefer a different broker, now might be a good time to research alternatives before your account transfers.

If you decide to stay with Schwab, it’s still a good idea to download records of your holdings, account activity, and cost bases before the transfer, just in case any issues arise (though problems are unlikely).

Should You Open a New TD Ameritrade Account in 2025?

No, you probably shouldn’t. Since all TD Ameritrade accounts will eventually become Charles Schwab accounts, it makes more sense to just open a Schwab account directly.

The good news is that Charles Schwab is also an excellent broker in its own right, and it plans to integrate many of TD Ameritrade’s best features, including the popular thinkorswim platforms.

Final Verdict: TD Ameritrade Was Great, But Times Have Changed

TD Ameritrade was undoubtedly one of the best brokers in the business, with a perfect 5.0 overall score in its final review as a standalone brokerage. Its combination of powerful trading platforms, extensive research, educational resources, and competitive pricing made it a top choice for investors of all levels.

However, with the acquisition by Charles Schwab now well underway, the TD Ameritrade brand is effectively being phased out. If you’re in the market for a new broker, we’d recommend checking out Schwab directly, as it will eventually incorporate many of TD Ameritrade’s best features.

I remember when I first started using TD Ameritrade back in 2018, the thinkorswim platform seemed overwhelming with all its features. But after spending some time with their educational resources, I began to appreciate just how powerful it was. It’s good to know that this excellent platform will continue to live on at Schwab.

Have you used TD Ameritrade before? Are you a current customer being transitioned to Schwab? What has your experience been like? We’d love to hear your thoughts in the comments below!

Frequently Asked Questions

Is TD Ameritrade still available for new accounts?

While technically you can still open an account, it will eventually be transitioned to Charles Schwab. It makes more sense to open a Schwab account directly.

When will my TD Ameritrade account become a Schwab account?

Schwab is moving accounts in batches. You’ll receive notice approximately three months before your account is scheduled to transfer.

Will I lose any features when my account moves to Schwab?

Schwab has committed to keeping the popular thinkorswim platforms. However, some TD Ameritrade features may not survive the merger. Schwab has not provided a comprehensive list of which features will be retained.

Is Schwab as good as TD Ameritrade?

Schwab is also highly rated by StockBrokers.com and offers many excellent features. While there are differences between the two brokers, Schwab is a solid choice with strong platforms, research, and customer service.

What should I do to prepare for my account transfer?

Download records of your holdings, account activity, and cost bases. Review the Transition Update page on TD Ameritrade’s site for more information on what to expect with the merger.

Do I have to stay with Schwab after the merger?

No, you’re free to transfer your assets to another broker if Schwab doesn’t meet your needs.