Introduction
Ameritrade is a popular online brokerage platform that offers a wide range of investment options. As an investor, one of the most important factors to consider when choosing a brokerage is the trading fees. In this article, we will dive into everything you need to know about Ameritrade trading fees in 2023.
Account Types
Ameritrade offers several types of accounts, including individual, joint, retirement, and education accounts. Each account has its own fee structure, so it’s important to choose the right account for your investment needs.
Individual Accounts
Individual accounts are the most common type of account and are designed for one person. Ameritrade charges $0 for trading stocks, ETFs, and options. However, there is a $0.65 fee per contract for options trades.
Joint Accounts
Joint accounts are designed for two or more people. The trading fees for joint accounts are the same as individual accounts.
Retirement Accounts
Retirement accounts, such as Traditional and Roth IRAs, have a different fee structure. Ameritrade charges $0 for trading stocks, ETFs, and options, but there is a $25 fee for each mutual fund transaction.
Education Accounts
Education accounts, such as 529 plans, also have a different fee structure. Ameritrade charges $0 for trading stocks, ETFs, and options, but there is a $5 fee for each mutual fund transaction.
Other Fees
In addition to trading fees, Ameritrade also charges other fees that investors should be aware of.
Account Fees
Ameritrade charges a $0 account opening fee and a $75 account transfer fee. There is also a $0 account maintenance fee.
Wire Transfer Fees
Ameritrade charges a $25 fee for outgoing domestic wire transfers and a $0 fee for incoming domestic wire transfers.
Margin Fees
Ameritrade charges a margin interest rate of 9.5% on balances up to $24,999.99 and a rate of 8.5% on balances of $25,000 or more.
How to Minimize Fees
While Ameritrade’s fees are competitive, investors can still take steps to minimize their fees.
Choose the Right Account
Choosing the right account for your investment needs can help you avoid unnecessary fees. For example, if you plan to invest in mutual funds, a retirement or education account may be the right choice.
Trade Smart
Investors can also minimize fees by trading smart. For example, instead of making frequent trades, investors can make larger trades less frequently.
Use Fee-Free ETFs
Ameritrade offers a selection of fee-free ETFs that investors can use to minimize fees.
Conclusion
Ameritrade offers competitive trading fees and a wide range of investment options. By understanding the fee structure and taking steps to minimize fees, investors can make the most of their investments on the platform.
