TD Ameritrade can trace its history back to a boutique investment banking firm First Omaha Securities, Inc who established Ameritrade Clearing, Inc in 1983.
In 1988 the firm introduced the first quote and order entry system via the push-button phone and in January 1996 launched “Accutrade for Windows,”, a system that let people trade online for the first time. Wow, innovation at it’s finest. Crazy to think how far trading technology has progressed since then!
Today TD Ameritrade is regarded as one of the top brokers for penny stocks and blue chip stocks with over 11 million accounts managing $1.3 trillion in assets. In October 2020, TD was acquired by brokerage giant Charles Schwab in a blockbuster $26 billion deal.
Penny Stock Fees
One of the best things about TD Ameritrade is the commission structure. They don’t have surcharges for penny stocks, pink sheets or OTC stocks. TD Ameritrade charges a flat fee of $6.95 per trade and charges no fees for boring blue chip stocks. In comparison, brokers such as Interactive Brokers have a surcharge of $0.005 per share which is more expensive in the long run.
Another huge positive is their low account minimum, you can sign up an account with $0. This is perfect for penny stock traders who are eager to start day trading but don’t have a lot of capital. Although their account minimum is low, we advise starting with at least $2,000. Once you feel more confident, deposit more capital if your trading performance is positive.
TD Ameritrade Apex
This is a program for active investors who trade more than 5 times a month or maintain an account balance in excess of $100,000. You’ll get preferential customer service, emails and calls will be given the highest priority by the specially trained Apex team.
TD Ameritrade has a very accomplished set of trading tools, more than enough for the average investor.
Trade Architect is the latest platform; it takes the best tools from “thinkorswim” a revolutionary trading platform that they acquired in 2009, and merges them with their excellent fundamentals analysis platform.
The result is a supremely intuitive trading platform that offers everything the professional trader could ever need, from customizable screens, heat maps, live-streaming CNBC and real-time quotes. You can even validate your trade ideas by using P&L graphs, earnings analysis, and advanced charting with studies.
They offer a fully featured mobile application that is not platform specific, so it works on any mobile enabled device. It gives you the ability to carry out trades, monitor your portfolio and get the latest news and updates.
- Large selection of penny stocks available unlike Robinhood who have a limited number of stocks under $5.
- No surcharges for penny stocks and after-hours trading.
- Large well-known company with 250+ local branches. There should be a branch within driving distance if you live in the United States.
- No maintenance and inactivity fees, these can be annoying if you trade like Warren Buffett.
- Excellent trading tools to help customers gain an edge in the market.
- Not the cheapest broker but still competitive in the industry. Charles Schwab and Fidelity both charge no fees for shares below $5.
- You can trade only the US markets, so those who want to trade stocks on European exchanges are out of luck. Interactive Brokers is a better option for international traders.
- Only accept US citizens which is annoying for traders located in Europe.
TD Ameritrade is one of the better penny stock brokers. They have a great trading platform, no minimum deposit and excellent borrows for short selling. They aren’t the cheapest penny stock broker but are still very competitive. $6.95 per trade is cheap but brokerages such as Robinhood and Charles Schwab are stealing potential customers as they charge zero commissions.