Introduction
If you’re thinking about investing with TD Ameritrade, it’s important to understand the fees that come with it. In this article, we’ll break down the various fees that TD Ameritrade charges its investors.
Account Fees
TD Ameritrade offers a range of account types, each with its own set of fees. For example, a standard brokerage account comes with no annual fees, but there is a $6.95 commission fee for online equity trades. However, TD Ameritrade offers commission-free ETFs, which can help reduce trading costs.
Mutual Fund Fees
When it comes to mutual funds, TD Ameritrade offers more than 13,000 options, but most of them come with a transaction fee. These fees can range from $49.99 to $75, depending on the fund. However, there are also a number of no-transaction-fee mutual funds available through TD Ameritrade.
Options Trading Fees
TD Ameritrade charges a commission of $0.65 per contract for options trades, with no base fee. This fee is in line with the industry standard.
Margin Trading Fees
Margin trading allows investors to borrow money to invest, but it also comes with fees. TD Ameritrade charges a margin rate that ranges from 8.25% to 9.75%, depending on the amount borrowed.
Other Fees
In addition to the fees mentioned above, TD Ameritrade also charges a number of other fees. These include:
IRA Fees
TD Ameritrade charges a $0 annual fee for IRA accounts, but there may be fees associated with specific investments.
Wire Transfer Fees
TD Ameritrade charges a $25 fee for domestic wire transfers and a $50 fee for international wire transfers.
Returned Check Fees
If a check deposited into your TD Ameritrade account is returned, TD Ameritrade will charge a $25 fee.
Account Closing Fees
If you decide to close your TD Ameritrade account, there is a $75 fee.
Conclusion
When it comes to investing with TD Ameritrade, it’s important to understand the fees that come with it. While some fees may seem high, TD Ameritrade offers a wide range of investment options that can help you reach your financial goals. Be sure to consider your investment goals and risk tolerance before making any investment decisions.