What are the advantages of using electronic funding?

TD Ameritrade provides Automated Clearing House (ACH) services for the primary purpose of the purchase or sale of securities. Electronic funding is fast, easy, and flexible. Use it within our online application to open and fund your qualified account and trade online the same market day for most account types, eliminating the cost and time delays of wire and overnight fees. You can also use it to add additional funds to your existing account, either as a one-time transfer or a recurring transfer.

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How does electronic funding work?

Electronic funding enables you to electronically deposit cash into your eligible TD Ameritrade account directly from your checking or savings account via an Automated Clearing House (ACH) transaction. The ACH network is a nationwide batch-oriented electronic funds transfer system.

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Can I use electronic funding with any account?


No. As part of the online application, electronic funding is not available from the following account types: Tenants by the Entireties, Rollover IRAs, Simplified Employee Pension (SEP) IRAs, and Savings Incentive Match Plan for Employees (SIMPLE) IRAs. When adding additional funds to an existing account, electronic funding is excluded from the following account types: SEP IRAs, SIMPLE IRAs, and Pension or Profit Plan for Small Business accounts. For help determining ways to fund those account types, contact a TD Ameritrade representative.

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Can I buy IPOs or options contracts using electronic funding?

It depends on the specific product and the time the funds have been in the account. Funds deposited electronically can be used to purchase non-marginable securities, initial public offering (IPO) shares or options three business days after the deposit settlement date. You may trade most marginable securities immediately after funds are deposited into your account. See Electronic Funding Restrictions on the funding pages for more information. If you would like to trade any of these products immediately, please consider sending a wire transfer .

Typically at TD Ameritrade shares of recently IPO’d stocks trading in the secondary market are not marginable for some time after the IPO.  A process change has been made for Alibaba (ALIB). Secondary market traded shares of ALIB will be marginable as soon as the Federal Reserve declares them such, which will allow you to use electronic funding to trade shares immediately upon the deposit posting to your account.

 

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Are there any restrictions on funds deposited via electronic funding?


Yes. Funds cannot be withdrawn or used to purchase non-marginable securities, initial public offering (IPO) stocks, or options until three business days after deposit settlement. All electronic deposits are subject to review and may be restricted for 60 days. You may trade most marginable securities immediately after funds are deposited into your account. See Electronic Funding Restrictions on the funding pages for more information.

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What information do I need in order to request an electronic funding transaction?


To use electronic funding, you will need a valid checking or savings account number and the routing number for your bank. Additionally, within the Online Application, you will also need your U.S. driver's license number or state ID number. All electronic funding transactions must be made payable in U.S. dollars through a U.S. bank. We cannot accept an electronic funding transaction from accounts drawn on brokerage accounts or money market accounts.

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Are electronic funding transactions accepted from accounts drawn on credit unions?

Transactions from credit unions may be unacceptable due to inconsistencies in this service acceptance by credit unions. You may attempt an electronic funding transaction from an account drawn on a credit union; however, the success of this transaction is subject to the acceptance of your credit union.

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How will I know TD Ameritrade has received my funding?

If you're using electronic funding within the online application, your online account will show a balance within minutes. Accounts opened using electronic funding after 7 p.m. ET will not show a balance online until after 9 a.m. ET the following business day. Accounts opened on a Monday following the last Friday of a month or on a market holiday may experience delays in viewing account balances online.

If you're adding additional funds to your existing account, the funds will post to your account the next business day if the transaction is requested before 5 p.m. ET.

Please note: Electronic funding is subject to bank approval. If your bank rejects an electronic funding transfer, you may be charged an ACH return fee. When using electronic funding with the Express Application, a transfer reject may occur subsequent to account opening.

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Do I pay any transaction fees with electronic funding?

No, TD Ameritrade does not charge transaction fees to you or your bank. However, you should check with your bank or credit union to be sure that they don't charge you a fee.

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Do all financial institutions participate in electronic funding?

Not all financial institutions participate in electronic funding. If you are unsure of your bank's policy, please consult your bank to determine if they will approve an electronic transfer of funds prior to using electronic funding. You may be charged an ACH Return Fee if your bank rejects an electronic funding transfer. Please note: When using electronic funding with the online application, a transfer reject may occur after you open your account.

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Are my electronic funding transactions secure?

To ensure the integrity of the information you send via the Internet, electronic funding utilizes a multilevel server system with the latest in encryption software. Please see our Privacy Statement for more information.

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When can I trade most marginable securities?

 

  • Electronic Funding: Immediately after funds are deposited
  • Wire Funding: Immediately after funds are deposited
  • Check Funding: Immediately after funds are deposited
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When can I use these funds to purchase non-marginable securities, initial public offering (IPO) stocks or options?

  • Electronic Funding: Three business days after settlement date
  • Wire Funding: Immediately after the wire is posted to your account
  • Check Funding: Six business days after settlement date
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When can I withdraw these funds?

  • Electronic Funding: Sixty days after your account is open. Note: You may wire these funds back to the originating bank account (subject to a wire fee) three business days after the settlement date
  • Wire Funding: Immediately after settlement date
  • Check Funding: Six business days after settlement date
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