Trading Instruments
TD Ameritrade provides its users with an array of market instruments perfect for a versatile portfolio. Some major instruments available are:
Forex
The platform offers access to Forex currency pairs around the globe. It allows traders to trade in international currencies.
Options
The platform provides option trading, which allows traders to sell and purchase option contracts. Traders get a chance to use strategies like hedging.
Futures
At TD Ameritrade, you get an option of future trading. This option helps traders interested in currencies, indices, and commodities.
ETFs
TD Ameritrade offers traders access to the global market or target specific sectors. ETFs are specially for traders who invest in stock exchanges.
Mutual Funds
Mutual funds allow traders to invest their assets together and get a diversified portfolio. You can invest in index funds, actively managed funds, and retirement funds.
Leverage
The TD Ameritrade broker platform offers traders a maximum leverage of 1:50. This means traders can trade with up to 50 times their account balance. Leverage is one of the most popular and useful tools as it helps them trade with small investments and gain larger profits.
However, leverage also comes with a lot of risk. To ensure that traders are informed about the risk aligned with leverage, traders must acknowledge it. Traders get a chance to understand and accept the terms before trading using leverage.
Traders are advised to use leverage mindfully and not take risks that they can not afford.
Trading Platforms
TD Ameritrade has created its trading platform which is known as Thinkorswim. This platform offers multiple trading options from a single account. Traders get access to advanced tools, real-time market data, strategies, and live support.
The platform provides over 400 technical studies and around 20 drawing tools that become sufficient to understand the market. The Platform also has its algorithm for trading using ThinkScript. Thinkorswim is a powerful platform that becomes difficult for beginners to use.
The platform is however compatible with multiple devices from desktops to mobiles.
Deposits and Withdrawals
The platform offers various deposit and withdrawal methods of payment. It uses ACH or Automated Clearing House services that include electronic funding. They also have wire transfers, and bank transfers to complete the transactions at TD Ameritrade. These multiple methods make transactions easier and faster and make them reliable for the users.
The minimum deposit at TD Ameritrade is $2000, which is too much for a beginner trader to invest.
Apart from these, the platform also includes multiple charges and commissions on transactions. This changes for different payment methods. So, traders must read the charges before initiating any transaction.
Accounts
The platform has no details about the account types or account features.
Also, the official website does not work which makes it impossible to create an account with TD Ameritrade.
Security and Regulations
The platform is an unregulated trading broker. It is neither regulated nor authorized by any financial authority.
This is why TD Ameritrade seems unsafe and has no safety protocols that match industry standards.
Conclusion
If you are looking for a diversified trading market, then TD Ameritrade is a great option but the platform comes with multiple drawbacks. Starting from the website. The official website of TD Ameritrade is not available which makes it difficult to invest or trade with.
TD Ameritrade is a non-regulated and non-authorized broker platform. This imposes multiple risks for the investors from their funds to their personal information.
The platform has a very high minimum deposit amount and a complex interface that makes it difficult for novice traders.
Lastly, the platform comes with a lot of drawbacks that can make you lose your assets and information. So, think before you invest.
