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How to Buy Crypto with TD Ameritrade

How to Buy Crypto with TD Ameritrade

Summary: TD Ameritrade does not currently offer any Cryptocurrency trading services. Their online brokerage platform only allows US investors to buy and sell crypto-asset derivatives like OTC Trusts, Mutual Funds, ETFs, and Bitcoin Futures. This is not a recommended way to buy Crypto because it is generally more expensive and less illiquid than underlying assets like Bitcoin or Ethereum.

The best way for investors to buy Crypto with a TD Ameritrade alternative is with a FinCEN-licensed digital asset exchange. We recommend the Uphold platform because they offer instant & free USD deposits to trade 250+ Cryptocurrencies. Uphold is widely regarded to be the most secure trading platform in the US and is the only one that provides regularly audited proof-of-reserves.

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Best TD Ameritrade Crypto Alternative

Platform Highlights

  • Free and instant USD Deposits from any US Bank via Bank Transfer or ACH.
  • Regulated and Licensed by FinCEN and has audited Proof-of-Reserves for customer funds.
  • Zero trading fees to buy and sell over 250 Cryptocurrencies.
Uphold - TD Ameritrade Alternative
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Audited Proof of Reserves
Audited Proof of Reserves

Can I buy Crypto on TD Ameritrade?

Unfortunately for investors and users of TD Ameritrade in the United States, there is no way to get direct exposure to spot Bitcoin, Ethereum, or other cryptocurrencies through their trading platform. However, TD Ameritrade does offer indirect ways for customers to get exposure to cryptocurrencies. These investment opportunities include:

  • Coinbase (COIN): Indirect exposure to the Crypto industry.
  • Grayscale Bitcoin Trust (GBTC): Index that tracks the price of BTC.
  • Grayscale Ethereum Trust (ETHE): Index that tracks the price of ETH.

Although the investment options above provide some exposure to Crypto assets, this is not a recommended way to invest. This is because investors cannot withdraw the Bitcoin or Ethereum to their own storage or wallet, which means you ultimately do not "own" the asset.

How to buy Crypto with a TD Ameritrade Alternative

The best way to buy Cryptocurrencies with a TD Ameritrade alternative in the United States is with the Uphold platform. They offer over 250 digital assets to buy and sell with zero fees. Their platform is licensed in the USA by FinCEN and offers fast & cheap USD deposits via ACH Transfer, Debit Card, or Credit Card.

You can get started from any US Bank account with Uphold in 4 simple steps:

  1. Sign Up: Create an account on Uphold and complete your verification (personal or company).
  2. Connect Account: Select the currency you want to deposit on the Uphold Platform (USD, EUR + 30 more).
  3. Deposit Funds: Connect your US Bank account or Debit/Credit Card to quickly deposit your selected fiat currency.
  4. Buy Crypto: The final step is to find the Cryptocurrency you want to buy and execute your trade.
How to buy Crypto with a TD Ameritrade Alternative.
How to buy Crypto with a TD Ameritrade Alternative.

TD Ameritrade Fees

TD Ameritrade charges a commission for each trade made on its platform. The exact amount of the commission depends on the asset being traded and the account type. Here are some examples of the fees that TD Ameritrade charges for some common assets:

  • Crypto Stocks and ETFs: $0 per trade for online trades with a balance of $25,000 or more, or a monthly trade volume of at least 30 trades.
  • Options: $0 per trade for online trades and $25 for broker assisted
  • Mutual funds: $49.95 per trade for no-load funds, and $0 per trade for load funds.
  • Fixed Income: $0 per trade.

Can I buy Ethereum on TD Ameritrade?

As mentioned above, there is no way to directly buy spot Ethereum (ETH) and withdraw it to a personal wallet. You can invest in the Grayscale Ethereum Trust (ETHE), which does provide price exposure and is a somewhat effective way to invest.

About TD Ameritrade

TD Ameritrade is a publicly-traded online discount broker based in Omaha, Nebraska. The company offers services for individuals and institutions that invest online, with over 11 million client accounts and $1.3 trillion in assets as of Q2 2020. It is one of the largest US-based discount brokers, behind E*TRADE and Charles Schwab. The company was founded in 1971 and offers trading in stocks, ETFs, mutual funds, options, fixed income, futures, and forex.

TD Ameritrade is regulated by the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is a member of the Securities Investor Protection Corporation (SIPC), which protects customer assets up to $500,000 (including $250,000 for cash). TD Ameritrade is also a member of the Depository Trust & Clearing Corporation (DTCC), which provides clearing and settlement services for securities transactions.

TD Ameritrade.
TD Ameritrade.

Final Thoughts

TD Ameritrade is one of the largest US-based discount brokers and offers a wide range of services for individuals and institutions that invest online. Although TD Ameritrade does not offer direct access to cryptocurrencies, investors can gain exposure through the Grayscale Bitcoin Trust (GBTC) or Ethereum Trust (ETHE). Alternatively, investors could use alternative options, such as Uphold, to buy and sell Cryptocurrencies directly.

Andrew Chen

Andrew Chen is a lead editor and auditor of content for Buy Bitcoin Bank, with a Masters of Computer Science and extensive knowledge in cryptocurrency and blockchain technology. He has helped ensure the accuracy and quality of the platform's educational resources for new and experienced investors in the crypto space.

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