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 touch-tone phone.
In January 1996, the firm launched “Accutrade for Windows,” a system that let individuals trade online for the first time. In 1996 they launched the first internet only broker called eBroker. On January 24, 2006, they acquired TD Waterhouse USA from Toronto-Dominion Bank. Following the acquisition, the company was renamed TD Ameritrade. Today they are regarded one of top brokers for penny stocks and blue chip stocks with over 11 million accounts managing over $1 trillion in assets.
One of the best things about TD Ameritrade is they don’t have surcharges on penny stocks or OTC pink sheets. They charge a flat fee of $6.95 for penny stocks, brokers like Interactive Brokers charge an extra fee of 0.001 for penny stocks which can be expensive in the longrun.
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.
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.
- 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.
- Large selection of penny stocks available unlike Robinhood who have a limited number of stocks under $5.
- Excellent trading tools to help customers gain an edge in the market.
- Not the cheapest broker but still competitive in the industry.
- You can trade only the US markets, can’t trade stocks on European exchanges.
- Expensive for broker-assisted trades.
TD Ameritrade is one of the better penny stock brokers; they 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.