TD Ameritrade

[Atreides]

I am a first time invester (planning to experiment with small money first because I am also leaving 4000-5000 for future savings and maybe just putting 100 in to invest as an experiment). I shopped around for who would seem to be the best to invest through, I came across TD Ameritrade, which seemed very attractive and very customer oriented.

Question:

Why should I, or should I not, invest through TD Ameritrade as a first timer?

Thanks!

[catlinye_maker]

If you are considering TD Ameritrade, consider the "Save Yourself" account offered by Suze Orman in her latest book. You don't have to buy the book, a library copy would have the information. The offer is open through March 2008. They are offering new account holders who sign up from the "Save Yourself" website using the code in the book an account that offers 4.59% APY. You commit to fund the account by automatic withdrawal of $50 or more per month for one year, and they will add a $100 bonus to the account at the end of that time. That does require a minimum $600 commitment from you over the course of a year, though.

This was a good enough deal for me that I did open a second account with them to take advantage of this offer. I've been happy with both accounts, though I am not an active investor at all (let money build up in the account and buy a stock once every couple of years.) Their regular money market funds have terrible interest earned but this special fund is at least competitive.

[JBinKC]

I have both TD Ameritrade and Interactive Brokers for my accounts. It would really depend upon what is your target stock to purchase. For my case those are the best overall for me but in your case another broker like Scottrade or others could be cheaper.

I believe there is currently a promotion where you can buy stocks commission free for the first 45 days after you open an account with them.


Where TD excels by far on cost per share is on large blocks of Canadian stocks that have a pink sheet ticker in the U.S. and especially so on stocks priced under a $1.

Interactive Brokers excels on price for small lots of stocks (as they charge one half cent a share $1 commission minimum on a market order so you can get up to 200 shares for a $1) that is very advantageous in selling a high priced stock or in the accumulation phase of a thinly traded low priced stock as you can efficiently add to your position on small lots you would normally bypass and international markets where there is no U.S. pink sheet ticker equivalent and where TD does not make a market overseas. The catch they charge more for changing limit orders and have minimums on the amount of volume you must generate per month which could be problematic for a small account.