If you asked Willie Sutton why he traded stocks rather than robbed banks he would inevitably say, “because that’s where the money is.” And he would be right. These days trading stocks will get you much farther in the long run than robbing banks as, with such low interest rates – even negative interests – haunting global banking systems, chances are, that’s where the money isn’t. And that’s where Ameritrade fees come in.
Trading stocks on TD Ameritrade may turn out to be the most rewarding lesson you will have, especially, given the Ameritrade fees scales, those trades do not need to cost you more than the price of a stacked turkey sandwich.
As one of the first national online discount brokerage firms, the company perfected the art of quick online stock trades by chopping rates so that Ameritrade fees are now a reasonable $9.99 per trade. In line with this customer-friendly approach, the company created a user-friendly online platform that allows you to go as surface or as deep as you need to be comfortable with your decisions; and it created a mobile app that mirrors the desktop functionality with easy navigation.
- Internet Trade: $9.99
- Interactive Voice Response Phone Trade: $34.99
- Broker-assisted Trade: $44.99
But fees, whether TD Ameritrade fees per trade or even TD Ameritrade free trades, are beyond consideration if you do not have the capital or the know-how to trade stocks.
Fees and Trading Stocks at TD Ameritrade
Buying a stock is like buying a small part of a company. Technically, you own a share or a number of shares of it when you put in an order to buy. Most of the time stocks are the foundation of a portfolio and historically they have performed at an average of 5 percent annually, year over year to become a safe enough investment for most investors and, these days, easily out performing CDs, T-bills and other banking options.
They can be broken down into two fundamental actions and approaches: “buy and hold” or short-term speculation.
For beginning investors, the buy and hold approach is recommended. And that means fewer trading fees.
The short-term speculator is concerned with the intraday or day-to-day price fluctuations of a stock. If that instrument is currencies or commodity futures rather than stocks, trading could take place several times a day with mounting trading fees to match. Often, a short-term investor may not have the luxury of time to watch a stock through a day and will have to rely on a broker to do the job. In that case, even at a discount firm, such as TD Ameritrade where broker traded fees run $44.99 per trade, trading fees and commissions could seriously mount up through a day.
But for investors that know what they are doing, often taking a more technical approach to their work, looking at charts and statistics (TD Ameritrade provides access to a whole library of such materials), the goals to buy low and sell high for a quick profit often see action. Investors may also try “shorting” a stock or other instrument, in effect “selling” a stock they don’t actually own. Profits are made when the stock declines in price, which happens regularly these days during down, or bear, markets. But this is a risky venture and must be watched carefully as momentum favors the “bulls” or up markets.
Why Trade Stocks at TD Ameritrade?
It is not surprising that stocks are, perhaps, most heavily traded financial markets in the world, especially considering electronic exchanges that ensure fast and seamless transactions and making it easy to buy or sell shares.
Also, when it comes to stocks, there is a huge roster of stocks from which to choose. A vast range of industries are represented here and investors usually have choices that can cater to comfort and expertise.
Access also takes much of the sting away. In the past, reaching a human broker, having to get real time quotes over the phone, even access to good information made trading in the financial markets almost impossible for anyone but the hardened, seasoned aficionado.
Now, all it takes is a computer, iPad or smartphone and an online brokerage account. TD Ameritrade’s Trade Architect or thinkorswim trading platform (for experienced traders) makes online trading an opportunity for nearly anyone.
Most of all, low commissions or online fees per trade at TD Ameritrade keeps trading in stocks and other financials on a level playing field for the average investor. The commissions and fees for trading stocks are very affordable for nearly anyone who wants to participate in efficient online trading.
Conclusion: Goals of the Investor
Thus, trading any stock or financial instrument through an online brokerage firm really rests on the investor and what goals and risk tolerance he or she has. Reading TD Ameritrade reviews can help. No matter what, however, the cost of fees per trade will matter in decisions made.