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Minimum Age to Open a TD Ameritrade Account in 2021


What is a minimum age to open an investment or IRA account at TD Ameritrade brokerage in 2021?



Minimum Age to Open a TD Ameritrade Account


The minimum age to legally open and own a brokerage account in the U.S. at TD Ameritrade is 18 years. This is true for all U.S.-based brokers, including TD Ameritrade.

If you (or a child) are not yet 18 years of age and are eager to start investing some of your hard-earned cash there is another option to enter the stock market before this age – custodial accounts.


Open TD Ameritrade Account



Open TD Ameritrade Account


TD Ameritrade IRA


TD Bank is one of the largest banks in the United States. It offers customers full range of financial services. Among these are retirement accounts, brokerage service and banking products. Some of the TD Bank's most popular products are provided through their brokerage arm called TD Ameritrade.

TD Ameritrade, along with most brokerage firms, has made it very easy to open an Individual Retirement Account (IRA). In a matter of minutes, a prospective account holder can open a new IRA, which can be funded within a few days or less, depending on the method for funding.

New accounts are also eligible for a sigun-up bonus. TD Ameritrade gives up to $600 for opening new accounts. However, to get the full $600, an investor must fund an account of at least $250,000. For smaller accounts, starting at $25,000, TD Ameritrade offers a $100 incentive. This account-opening reward increases depending on the initial account value, up to the maximum of $600.


TD Ameritrade Fees


TD Ameritrade IRA Fees


There are no retirement account fees as TD Ameritrade. Setup, maintenance, inactivity, account closing - all are free of charge.


TD Ameritrade Trading Fees


TD Ameritrade charges $0 per trade for both stock and ETF transactions. The fee jumps to $25 for broker assisted transactions. For mutual funds, the fee is at $49.99 (no fee is charged for load funds). Options trades are the standard $0 plus an additional $0.65 fee per contract. Futures are $2.25 per contract. These are fairly standard fees for a discount brokerage firm.


TD Ameritrade Short Term Trading Fees


The caveat to most of these fees and charges is that TD Ameritrade has a suite of commission-free ETFs and mutual funds. If an investor chooses to invest solely in these funds, no commissions will be charged at either end of the sale. To qualify for these free trades, an investor must sign up for the program, and must hold the ETFs for 30 days, otherwise TD Ameritrade short-term trading fee of $19.99 might apply.

TD Ameritrade’s commission-free ETF’s have historically included passively managed, low-cost index funds typified by Vanguard Total Stock Market ETF (VTI) and iShares Core S&P 500 (IVV). These ETF’s both have 10-year returns above 7%, with incredibly low expense ratios of 0.04% and 0.05% respectively.


Other TD Ameritrade Account Fees


Some investors may choose to use their account as a checking account with debit card attached. TD Ameritrade does not charge any fees for this. Checks are free, ATM fees are refunded nationwide, and debit cards have no annual fees. For those who do keep cash in their account, negligible interest rates are available ranging from 0.01% for the smallest accounts to 0.1% for the largest.

Margin accounts will be charged a rate set internally by TD Ameritrade. Currently, the base rate is 8.25% on borrowed funds. The actual rate charged will vary based on account size. Accounts smaller than $10,000 pay the highest rates, with an increase of 1.25% over the base rate. Accounts over $1 million will pay 1.5% under the base rate. TD Ameritrade requires at least a $2,000 account balance for margin trading.

For those leaving TD Ameritrade, investors should be aware that a partial transfer is free. However, a full transfer will cost $75. This is a fairly common fee for discount brokerage firms.


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Overall Appearance


The interface is focused on users who are more interested in the market at large than their specific account details. Upon logging in, users can see the total value of their account and individual stock holdings. However, to see the funds available for trading, or a breakout of market positions, a user has to click away from the main screen.

Instead, the majority of the page shows a market snapshot and daily updates of market-wide earnings, dividends, economic events, etc. An avid market follower or day trader will find this very useful. For the average buy-and-hold investor, this information might seem like overkill: the most important detail for them is how an individual account is performing.

For investors with more than one account through TD Ameritrade or perhaps a personal and a custodial account, accounts can be linked so that all information can be accessed from one convenient login.


TD Ameritrade ira rates


Researching Capabilities


TD Ameritrade’s Research and Ideas tab will be of interest to anyone who follows the markets. Links to Dow Jones, MarketWatch and Morningstar articles are updated throughout the day. Indices and market sector comparisons can be performed over the long or short-term. Investors can also find a wealth of analyst reports for further research.

Those who want to focus their research on individual stocks will find a very robust set of charting options. Traders will be pleased with the candlestick charting, which can drill down to minute-by-minute market performance, if necessary. Additionally, multiple windows can be opened at once to follow more than one stock. Unfortunately, the charting options don’t appear to offer an easy-on-the-eyes black background within the web-based platform.

For traders with a lot of experience and high-turnover goals, TD Ameritrade offers a desktop trading platform. The views and functionality of this interface resemble the stereotypical trader’s platform. Advanced charting options and weighting are programmed into what TD Ameritrade terms “thinkorswim.” Additionally, this program offers the chance to play with ideas in a risk-free simulation. This program is incredibly useful to beginners.

For retirement research, TD Ameritrade offers some planning support. A retirement calculator gives a good overall view of potential retirement income, along with allowing an investor to play with different outcomes. This calculator is somewhat more powerful than many others offered by financial services companies. The guidance goes a step further with worksheets on income planning and required minimum distributions from retirement accounts. Any investor nearing retirement would be well served to utilize some of these tools to gain familiarity with and plan for their personal retirement options.


Minimum Age to Open TD Ameritrade Account Conclusion


TD Ameritrade’s IRAs are a simple, straightforward platform for building wealth. The website is easy to use with competitive rates and good researching capabilities. Overall, TD Ameritrade functions extremely well as a discount brokerage firm and it should meet the needs of most retirement investors.


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Open TD Ameritrade Account