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TD Ameritrade Review 2017

td ameritrade review 2017

 

td ameritrade reviewTD Ameritrade is an all-inclusive, one-stop-shop-style discount broker for basically every kind of trader and investor out there. Whether you’re a beginner investor just trying to buy some ETFs or mutual funds for your Roth IRA, a swing trader looking to create or hedge complex positions using options contracts, or a high-speed day trader wanting to buy and sell individual stocks, forex pairs, commodities, or futures, TD has basically got you covered. The only thing they don’t really do is algorithmic automated systems trading (though you can accomplish this fairly easily using a TDA account in conjunction with another company called Prodigio — and without any programming knowledge no less!)

To me, TDA’s most compelling features include that they have no minimum balance requirement, excellent free research and news tools, and a choice of three trading platforms (with my favorite, of course, being thinkorswim). I’ve also found their support teams to be extremely easy to reach via phone, email, or even live chat, and the reps seem friendly and accommodative.

To pay for all the freebies and low fees that make Ameritrade so accessible to so wide an audience of investors, the firm has traditionally charged more in commissions than most other discount brokers. Recently at $9.95 per trade, the commissions were getting pretty out of sync with some of the competition out there for awhile, especially for more active traders. But the recent commission price cut to $6.95 per trade for stocks and ETFs has alleviated some of that imbalance. Traders have to realize the trade off is there due to the other free services the company provides, such as a good research and news, a pre-configured data feed, well-supported scriptable platforms, etc. — features which more specialized low-cost brokers charge customers for out of pocket. Still, even with the freebies and the recent price drop, TD may not be the best option for the more active traders among us.

Compare TD Ameritrade

As of 3/6/17 TDA
Fidelity
Schwab
Online equity trades $6.95 $4.95 $4.95
Minimum opening deposit $0
($2k for margin/options)
$2,500 $1,000
Access to real-time streaming quotes Free Platform conditions apply Free
Access to Level II quotes Free Platform conditions apply Platform conditions apply

TD Ameritrade’s Commissions & Fees

  • Stocks: $6.95 per trade
  • Bonds: $25
  • Options: $6.95 per trade plus $0.75 per contract
  • Futures: $2.25 per contract plus exchange and regulatory fees
  • Forex:
    • Spread-only pairs: Avg. spread of 1.4 pips EUR/USD as an example
    • Commission-based (#): $1 min. and/or $0.10 per 1,000 units
  • ETFs:
    • 100+ ETFs: $0
    • All others: $6.95
  • Mutual Funds:
    • Almost 4000 NTF and Load funds: $0
    • No Load: $49.95
  • Account minimum: $0
  • No annual or inactivity fee; $75 outgoing transfer fee
  • Promotion: $100 to $600 cash bonus, depending on account size

Where TD Ameritrade Really Shines

Account minimums: TD Ameritrade has a very accessible $0 account minimum for both IRAs and taxable brokerage accounts, so this can make it extremely easy for anyone to start investing. I mean, free is much, much lower than the typical $500 to $2,500 many brokerages want. Another nice add-on to the low account minimums is that TD doesn’t charge account inactivity fees either, and regardless of your balance you still get access to the free tools, news, and research. However, customers trading options or using margin are required to maintain at least a $2,000 account balance to be able to trade.

Curated investments: TD Ameritrade has more than 100 commission-free ETFs and nearly 4,000 no-transaction-fee mutual funds. Moreover, Morningstar, an independent investment research firm, compiles a quarterly “Premier List” of no-transaction-fee mutual funds in 45 different fund categories for TD Ameritrade clients, and customers have free access to that.

Free research: TD Ameritrade provides traders with analysis from Market Edge, S&P Capital IQ, and Credit Suisse, as well as free streaming CNBC news, market heat maps, and free real-time streaming quotes. Another little perk is the online social community myTrade. And if you want input from your local broker, there are over 100 locations around the U.S. that you can call or visit.

Simulated trading: TDA offers some great ways for traders to get started without risking anything. Not only does it offer basic demo trading accounts, called TD Ameritrade Paper Money, but they also offer a fully functional version of their advanced trading platform on demo mode as well. Just download and run the thinkorswim paperMoney platform. You can also demo trade right inside any of the mobile apps by switching the mode as you login.

TD Ameritrade’s Platform Options: TDA has some great options for traders and investors, from your basic mobile app or online web-trading platform, to the more advanced Trade Architect, to the full-fledged all-in-one desktop trading platform thinkorswim.

TD Ameritrade Platform Options

  • Web trading (web based)
  • Trade Architect (web based)
  • thinkorswim / thinkDesktop (Windows / Mac / Ubuntu download options)

TD Ameritrade Mobile Trading Platform Options:

  • Mobile web trading
  • TDA Mobile app
  • TDA Mobile Trader app
  • thinkorswim mobile

Where TD Ameritrade Is Lacking

Trading commissions: Like I mentioned previously, my biggest gripe against TD Ameritrade has always been the commissions. That definitely got a whole lot better in March when the company lowered its base commission rate for stocks, ETFs, and options from $9.99 to $6.95.

But the whole industry reduced commissions at about the same time, including Fidelity, Charles Schwab, and also TradeStation (a big competitor to thinkorswim), among others. This means that TD Ameritrade is still pricier than its peers, but again we have to remember that TDA offers a lot of freebies and lower minimums to offset some of that annoyance.

Broker-assisted trades: TD charges a whopping $44.99 for broker-assisted trades, compared to more typical competitor rates of $25 t0 $35, though this can be reduced by $10 if you choose to place the trade on the interactive voice response phone system (but then you have to ask yourself why you didn’t just go on the mobile app and trade for $6.95 instead!) Broker-assisted trades and the IVR phone system would mostly be useful for closing a position in an emergency if your power goes out or something. And, by the way, it’s always a good idea to keep their number in your phone for that very purpose: 800-669-3900

The Bottom Line

TD Ameritrade does a good job of wearing a lot of hats and covering a lot of bases for different types of investors and traders. From getting portfolio guidance, independent research, commission-free ETFs, no-transaction-fee mutual funds, and your pick of three great multi-product trading platforms in addition to being accessible via the mobile app, they really check a lot of boxes.

When you add to that that these features are all available for free and with no minimum initial deposit, TD’s service becomes a truly compelling offering.

TD Ameritrade is best for:

  • Beginner investors wanting low fees and minimums.
  • Advanced traders who don’t want to deal with complex data feeds and software configuration.
  • Options traders.
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ThinkOrSwim Position Sizer gets Complete Overhaul! [VIDEO]

New Features for the ThinkOrSwim Position Sizer

I recently finished up a complete redesign of my ThinkOrSwim Position Sizer, and I wanted to post a quick announcement and go over some of the new features. I’m pretty excited about what I’ve been able to do with it, and I really hope others will find it as useful as I do.

The original implementation was basically a candle high/low position sizer. It calculated entries 1 tick above the high and your stop was 1 tick below the low of the candle, and it would size your position based on that stop size. Additionally, it only worked on stocks. I had originally made it to help me quickly calculate price action entries and exits and get the right number of shares each time, and it did that well for me, but wasn’t very flexible for other traders’ needs.

The new indicator is completely different and vastly more powerful.

thinkorswim position sizer labels
ThinkOrSwim Position Sizer labels

New Features

  • Works on Stocks, ETFs, and now Futures too!
    • Automatically account for the minimum tick size and tick value of futures contracts
  • Choose a percent of your buying power to risk on each trade
  • Script automatically grabs your current account balance and calculates the right amount of shares/contracts to buy based on your predefined risk tolerance
    • Optionally specify a manual/theoretical account balance
    • Specify a buying power multiple (2x or 4x account balance, etc., or just leave at 1x to use no margin leverage)
  • NEW STOP TYPES!
    • Candle/bar price action stops and entries as before
    • New! ATR stops
      • Specify a custom ATR multiple to use for stops
      • Change every aspect of how the ATR is calculated if desired
    • New! Kase DevStops
      • Choose between 4 different DevStop standard deviation levels
  • New entry methods!
    • Choose trade direction, long or short
    • Specify to calculate entries from the close, open, high, or low
    • Add custom padding for slippage or breakout entries to both entries and stops
      • Example 1: enter 1 tick above the high of a candle, stop 1 tick below the low, etc., to simulate a stop-market entry and exit
      • Example 2: assume 1 tick slippage on entries and stops, regardless of entry type
  • New target methods!
    • Choose an automatic target based on a multiple of your risk (stop size).
      • Example: if your stop size is $2, you can specify a 1:2 risk/reward ratio, and it will automatically calculate your target price as $4 above your entry
    • Choose a manual target price for your trade and automatically get the risk/reward in both Risk Units (Rs) or in percentage terms
  • Optionally round the shares or contracts to the nearest 10, 100, or whatever other number you specify
  • Show/hide any labels or lines on the chart
  • Change label and line colors as desired
  • Question mark icon / Tooltip for each option explains every setting in detail

How to Get the Updated Version

A quick note: previous purchasers will OF COURSE get the updated version for free! I really appreciate your support, and the updated links will be waiting for you in the My Account area under My Orders, as with all updates I release. If you have any trouble getting the links, just contact me and I’ll make sure you get setup.

If you haven’t purchased the Think-Or-Swim Position Sizer yet but you think it will be of benefit to your trading, you can pick up your copy here:

$99.99 $59.99 Add to cart

Screenshots

explanation of each label in the think or swim position sizer indicator
explanation of each label in the think or swim position sizer indicator

 

 

thinkorswim position sizer chart example 1
thinkorswim position sizer chart example 1

 

thinkorswim position sizer kase devstop atr stop volatility stop
think or swim position sizer with Kase DevStops, ATR stops, volatility stops

 

think-or-swim position sizer with ATR stops
think-or-swim position sizer with ATR stops

 

Thinkorswim position sizer chart example
Thinkorswim position sizer chart example

 

Thinkorswim position sizer chart example and label explanation
Thinkorswim position sizer chart example and label explanation

 

thinkorswim position sizer - options settings 1
thinkorswim position sizer – options & settings 1

 

thinkorswim position sizer - options settings 1
thinkorswim position sizer – options & settings 2

 

thinkorswim position sizer - options & settings 3
thinkorswim position sizer – options & settings 3

 

thinkorswim position sizer - options & settings 4
thinkorswim position sizer – options & settings 4

[youtube https://www.youtube.com/watch?v=y0K5VxHQl3c&w=600&h=300]

$99.99 $59.99 Add to cart

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Short SPY Trading Strategy for ThinkOrSwim

Short SPY strategy by Connors and Alvarez for thinkorswim

The Short SPY Trading Strategy for ThinkOrSwim

The short SPY trading strategy comes straight out of Larry Connors’ & Cesar Alvarez’s book called “Short Term Trading Strategies that Work” and it’s the one strategy that they present for shorting. I’ve really been enjoying programming and testing some of the ideas presented in their book — a lot of which seem to have some merit — so I wanted to go ahead and share some of the work I’ve been doing with my readers.

The default settings that the trading strategy comes with are straight out of the book on page 106, and seem to perform very well in my own tests, but they can be easily customized and tested with different values using the strategy properties menu. This is useful for quickly backtesting the strategy with different instruments, time frames, and market conditions.

The original strategy in the book calls for no stop to be used, but I went ahead and added the option for a percentage based stop to make the strategy more applicable to different trading styles and time frames.

Results from thinkorswim strategy backtests can easily be exported and analyzed further in Excel or other spreadsheet programs simply by right-clicking on a strategy signal on the chart and clicking “Export” in the popup menu.

The Authors’ Stats:

  • Instrument: SPY
  • Win Rate: 68.75%
  • # Trades: 16
  • Points gained: 169.91
  • Avg. Holding Time: under 5 days

What You Get

  • Short S&P strategy file for thinkorswim from page 106 of the book
  • All parameters are customizable in the properties menu
  • Option to use a stop or not to use a stop, and to set the size in %
  • Customizable colors

Why You Want It

  • The high win/loss ratio on the SPY and other instruments makes it an easy strategy to trade from a psychological standpoint
  • Includes the option to add a stop, which makes the strategy even more easy to trade
  • Ability to quantitatively backtest the strategy on multiple instruments, timeframes, and conditions affords more peace of mind and encourages traders to fully trust in their system.

How it Works

The strategy is straightforward: just make sure the market is under the 200 day sma, and then if the market makes 4 new higher closes, sell the market and cover once it drops below its 5 day sma. Traders can optionally add a percentage based stop to the strategy (simple option in the properties menu) and customize how big the percentage stop should be.

 

$69.99 $49.99 Add to cart

 

Short SPY Trading Strategy for thinkorswim
Short SPY Trading Strategy for thinkorswim