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?
Generally, $1,000 equity is required to open an IRA, and $2,000 equity is required to open any non-IRA. Your minimum initial deposit is based on the account type you have selected and may be modified by special promotional offers. Regardless of any promotional offer, a $2,000 minimum deposit is required to be considered for margin and options privileges.
▲Top
What is the fastest way to open a new account?
The online application is the fastest way to open and fund your new account. If you successfully open and fund your account electronically, you may begin trading the same market day.
▲Top
Do you handle IRAs?
Yes. Setting up your own self-directed IRA is easy. IRAs have a minimum funding amount of $1,000. For information about IRAs, please see Frequently Asked Questions About IRAs.
▲Top
Can I trade mutual funds?
Yes. At TD AMERITRADE you'll have access to 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 open a margin or options account?
Yes. You can choose to apply for margin and/or options privileges as part of both the online application and the paper application. Just complete the margin and/or options sections; we'll review the information, and if appropriate, we'll 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 TD AMERITRADE account?
TD AMERITRADE offers unlimited check writing. There is no per-check minimum amount. You can complete the checking application online once your account has been opened. Please note: your TD AMERITRADE account is not FDIC-insured or bank guaranteed.
▲Top
Can I earn interest in my TD AMERITRADE account?
When legally authorized, 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 is a convenience service only and is subject to the current TD AMERITRADE rates and policies, which are subject to change without notice. Wisconsin residents cannot earn interest.
▲Top
Are there any restrictions on funds deposited into my TD AMERITRADE account?
Yes. 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 6 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. Please review our commission schedule and rates and fees schedule.
▲Top
Is my account insured?
Yes. 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.
Up to an aggregate of $250 million of additional securities protection, of which $900,000 may be applied to cash, is provided by London insurers, also limited to a combined return to any client from a Trustee, SIPC and London of $150 million. This coverage provides you protection against brokerage insolvency and does not protect against loss in market value of the securities. Ask for details.
▲Top
Can I trade OTC bulletin boards, pink sheets or penny stocks?
Yes. Over-the-counter bulletin board (OTCBB), pink sheets and penny stocks (hereafter OTCBB) can be bought and sold via the Internet, IVR phone system or with a broker. OTCBB securities usually represent shares of new or small companies which are traded by dealers via manual procedures. Investing in OTCBB securities can be very risky, and investors may lose all or part of their investment in a relatively short period of time. Accordingly, the trading rules for OTCBB securities differ significantly from listed or NASDAQ securities. For example, only limit orders to buy and limit or market orders to sell will be accepted for the regular market sessions. Quotes for OTCBB securities may not be accurate as the securities may trade on a manual basis, and frequently "real-time" quote information, or even firm quotes, may not be available. Investors should also be aware that frequent symbol changes, additions and delistings occur in the OTCBB market. 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. Please contact a TD AMERITRADE representative for more information.
▲Top
I have a certificate that is jointly held with my spouse. Can I open an Individual account with this certificate?
Yes, but you need to send in a Third-Party Release form that is signed by both of you. The signatures must be signature guaranteed from a commercial bank, savings and loan, trust company or credit union. Both persons also need to endorse the back of the certificate.
▲Top
On the front of the stock certificate, my name is printed "D.L. Baker"; should I sign the certificate exactly like that or should I sign my full name?
You must sign the certificate exactly as your name is printed on the front, including initials, Jr., Sr., III, etc.
▲Top
I have other questions regarding certificates in my company name, custodial certificates and gifting of certificates. What should I do?
Simply contact a New Accounts representative at 800-454-9272, 24 hours a day, 7 days a week. We can help you with these or any other issues you may have regarding opening your account with stock certificates.
▲Top
Can I download account information directly to Quicken and Microsoft Money?
Yes, users of Quicken and Microsoft Money can download their TD AMERITRADE account information into their Quicken or Money personal finance software.
▲Top
Can I receive account statements electronically?
TD AMERITRADE offers the convenience of receiving your account statements electronically each month. We will notify you by email when your monthly statement is available online. Your statement will show trades, dividends and any interest payments. Your December statement will also include yearly totals of dividends and any interest paid or received. You should retain your statements if you would like a history of your transactions. A year-end recap of trades will not be provided.
▲Top
|
