Opening an Online Trading Account FAQs
Answers to your frequently asked questions
Get straightforward answers to your questions about opening an online trading account.
What is the minimum amount required for opening an account?
There is no minimum to open an account, however, a $2,000 deposit is required to be considered for margin and options privileges, regardless of any promotional offer.
▲Top
What is the fastest way to open a new account?
The online application is the fastest way to open and fund an account. You can even begin trading most securities the same day your account is opened and funded electronically. You may also speak with a New Client Consultant at 800-454-9272. We're here 24 hours a day, seven days a week.
▲Top
What types of investments can I make with a TD AMERITRADE account?
You can trade stocks, options, mutual funds, ETFs, bonds and CDs, UITs and REITs in a standard account. Please note that investment choices may vary in less common account types such as Trust accounts, 529 education accounts, and pension plans. Each plan will specify what types of investments are allowed.
▲Top
Can I trade mutual funds?
Yes. At TD AMERITRADE you'll have access to over 13,000 mutual funds.
Before investing in a mutual fund, carefully consider the investment objectives, risks, charges and expenses. For a prospectus containing this and other important information, contact the fund or a TD AMERITRADE Client Services representative. Please read the prospectus carefully before investing.
▲Top
Can I trade margin or options?
Yes. As you're completing the account application, simply complete the margin and/or options section. We'll review the information, and if appropriate, extend margin and/or options privileges to your account.
Margin and option trading pose additional investment risks and are not suitable for all investors. In addition, certain account types may not be eligible for margin, options, or advanced options trading privileges. Please read Characteristics and Risks of Standardized Options,
Margin Disclosure Document, Margin Account Handbook, and Day Trading Margin Requirements.
▲Top
Can I write checks from my account?
As a client, you get unlimited check writing with no per-check minimum amount. Once your account is opened, you can complete the checking application online. Please note: your TD AMERITRADE account is not FDIC-insured or bank guaranteed.
▲Top
Do I earn interest in my account?
Yes. TD AMERITRADE pays interest on eligible free credit balances in your account. Simple interest is calculated on the entire daily balance and is credited to your account monthly. This service is subject to the current TD AMERITRADE rates and policies, which may change without notice. View current interest rates.
▲Top
Are there restrictions on funds deposited to my account?
You may trade most marginable securities immediately after funds are deposited into your account, however, funds cannot be withdrawn or used to purchase non-marginable securities, initial public offering (IPO) stocks or options until six business days after check deposit settlement and three business days for electronic funding deposit settlement. All electronic deposits are subject to review and may be restricted for 60 days. Read Funding Restrictions for more information.
▲Top
Are there any fees?
Yes. We believe in fair, straightforward pricing and for you that means flat-rate $9.99 commissions on every Internet equity trade, regardless of account balance or how many shares you buy. And you won't be charged a maintenance fee. Please review our commission schedule and rates and fees schedule for complete details.
▲Top
Is my account protected?
If you lose cash or securities from your account due to unauthorized activity, we'll reimburse you for the cash or shares of securities you lost. We offer you this protection, which adds to the provisions that already govern your account, in case unauthorized activity ever occurs and it was through no fault of your own. Learn more.
In addition, TD AMERITRADE, Inc. is a member of the Securities Investor Protection Corporation. Securities in your account protected up to $500,000. For details, please see www.sipc.org.
TD AMERITRADE also provides $149.5 million worth of protection for each client through supplemental coverage provided by London insurers. The $149.5 million of coverage includes an additional $900,000 limit on cash in the account. Each client is limited to a combined return of $150 million from a Trustee, SIPC or London. The TD AMERITRADE Insurance Policy does have an aggregate total coverage of $250 million over all customers. This policy provides you coverage against theft following brokerage insolvency and does not protect against loss in market value of the securities.
▲Top
Can I trade OTC bulletin boards, pink sheets or penny stocks?
Yes. Over-the-counter bulletin board (OTCBB), pink sheets and penny stocks can be bought and sold via the Web, IVR phone system or with a broker for the same flat, straightforward pricing that you get with other types of trades. Before placing an order for an OTCBB security, please review the OTCBB Securities Trading Rules. You should also take the time to carefully research the company and examine your investment objectives.
▲Top
How do I endorse stock certificates over to TD AMERITRADE to open an account?
On the back of the certificate designate TD AMERITRADE, Inc. as the attorney to transfer the stock. This means the securities are negotiable only by TD AMERITRADE, Inc. and can be mailed safely. Then all you need to do is sign and date the certificate; you can leave all the other areas blank. Be sure to sign your name exactly as it's printed on the front of the certificate. Requirements may differ for entity and corporate accounts. Additionally, there may be additional paperwork needed when the account registration does not match the name(s) on the certificate. For more information, please contact a New Client Consultant at 800-454-9272.
▲Top
Can I receive statements electronically?
Yes. You can choose to receive both your statements and trade confirmations via an email notice.
▲Top
I have other questions. What should I do?
You can contact a New Client Consultant at 800-454-9272, 24 hours a day, 7 days a week.
|
