Introduction
TD Ameritrade is a popular online brokerage firm that offers a wide range of investment products, including stocks, options, futures, mutual funds, and exchange-traded funds. To start investing with TD Ameritrade, you need to open a brokerage account and meet certain minimum balance requirements. In this article, we will discuss everything you need to know about TD Ameritrade minimum balance requirements in 2023.
What is TD Ameritrade Minimum Balance?
TD Ameritrade minimum balance is the minimum amount of money you need to keep in your brokerage account to avoid certain fees and account restrictions. The minimum balance requirements vary depending on the type of account you have and the investment products you trade.
TD Ameritrade Minimum Balance Requirements for Different Account Types
Individual Brokerage Account
To open an individual brokerage account with TD Ameritrade, you need to deposit a minimum of $0. However, to avoid the $6.95 commission fee for online equity trades, you need to maintain a minimum balance of $2,000. If your account balance falls below $2,000, you will be charged the commission fee for each trade.
IRA Account
To open an IRA account with TD Ameritrade, you need to deposit a minimum of $0. However, to avoid the $25 annual account fee, you need to maintain a minimum balance of $5,000. If your account balance falls below $5,000, you will be charged the annual account fee.
401(k) Rollover Account
To open a 401(k) rollover account with TD Ameritrade, you need to deposit a minimum of $0. However, to avoid the $0.25 per contract fee for options trades, you need to maintain a minimum balance of $10,000. If your account balance falls below $10,000, you will be charged the options contract fee for each trade.
TD Ameritrade Minimum Balance Requirements for Different Investment Products
Stocks and ETFs
To avoid the $6.95 commission fee for online equity trades, you need to maintain a minimum balance of $2,000. If your account balance falls below $2,000, you will be charged the commission fee for each trade.
Options
To avoid the $0.65 per contract fee for options trades, you need to maintain a minimum balance of $2,000. If your account balance falls below $2,000, you will be charged the options contract fee for each trade.
Mutual Funds
To avoid the $49.99 commission fee for no-load mutual fund trades, you need to maintain a minimum balance of $0. If your account balance falls below $0, you will be charged the commission fee for each trade.
Benefits of Meeting TD Ameritrade Minimum Balance Requirements
Meeting TD Ameritrade minimum balance requirements can offer several benefits, including:
Lower Fees
By maintaining the minimum balance requirements, you can avoid certain fees, such as commission fees for equity trades, annual account fees, and options contract fees.
Access to More Investment Products
By meeting the minimum balance requirements, you can access a wider range of investment products, such as options, futures, and forex trading.
Better Trading Tools and Features
TD Ameritrade offers advanced trading tools and features, such as the thinkorswim platform, to clients who meet certain minimum balance requirements.
How to Meet TD Ameritrade Minimum Balance Requirements
To meet TD Ameritrade minimum balance requirements, you can:
Deposit More Money
You can add more money to your account to meet the minimum balance requirements.
Trade More Frequently
You can trade more frequently to maintain the minimum balance requirements. However, this can also increase your risk and trading costs.
Use Other TD Ameritrade Services
You can use other TD Ameritrade services, such as their cash management account, to meet the minimum balance requirements.
Conclusion
TD Ameritrade minimum balance requirements are an important factor to consider when opening a brokerage account and trading with TD Ameritrade. By understanding the minimum balance requirements for different account types and investment products, you can avoid fees, access more investment products, and enjoy better trading tools and features. To meet the minimum balance requirements, you can deposit more money, trade more frequently, or use other TD Ameritrade services.
