Summary: TD Ameritrade does not support direct cryptocurrency purchases such as Bitcoin or Ethereum for its US customers. However, it does provide indirect crypto exposure via Coinbase (COIN), Grayscale Bitcoin Trust (GBTC), and Grayscale Ethereum Trust (ETHE). For direct crypto trading, consider alternatives like eToro, a regulated crypto broker. Note that TD Ameritrade's fees vary based on the type of trade and asset.
- Free USD deposits from any US Bank to trade over 3,000 assets.
- Invest in Crypto, Stocks, Indices, Commodities, Fiat Currencies and ETFs.
- Licensed with FinCEN as a Money Services Business & is a member of FINRA.
Can I Buy Bitcoin on TD Ameritrade?
As of now, direct cryptocurrency purchases such as Bitcoin, Ethereum, and other crypto assets are not supported on the TD Ameritrade platform for its US customers. Nevertheless, TD Ameritrade offers several indirect opportunities for crypto exposure. The options for cryptocurrency-related investments on TD Ameritrade include:
- Coinbase (COIN): Provides indirect access to the cryptocurrency industry.
- Grayscale Bitcoin Trust (GBTC): An investment product that follows Bitcoin price movements.
- Grayscale Ethereum Trust (ETHE): An investment product that mirrors the price trajectory of Ethereum.
However, these options lack true ownership. You can't withdraw cryptocurrencies to personal storage, emphasizing the indirect nature of these investments. Hence, while TD Ameritrade offers exposure to crypto market fluctuations, it doesn't support direct crypto ownership.
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 a FinCEN and FINRA regulated crypto broker. Based on our analysis, we recommend the eToro platform because they are licensed and offer instant USD deposits from any bank to trade over 3,000 real cryptocurrencies and other assets with zero fees and industry-leading spreads.
You can get started from any US Bank account with Uphold in 4 simple steps:
- Create a free account on eToro and complete the verification process.
- Tap 'Deposit Funds', select a method (e.g ACH Transfer) and send USD from your bank.
- Go to the search bar, find the token you want to buy, and tap 'Trade'.
- Input the amount you want to invest in the token and tap 'Open Trade'.
TD Ameritrade Fees
TD Ameritrade has a fee structure for various types of trades made on its platform, varying based on the asset traded and the account type. For trading in crypto stocks and ETFs, if the online trades are maintained with a balance of $25,000 or more, or a monthly trade volume of at least 30 trades, TD Ameritrade doesn't charge any commission.
Similarly, for options, the firm levies no fee for online trades but charges a $25 commission for broker-assisted trades. Mutual funds also come with different fee structures, with a $49.95 per trade charge for no-load funds and zero charge for load funds. Lastly, for trading in fixed income assets, TD Ameritrade doesn't impose any trading fees. Therefore, depending on the type of asset you plan to trade, the fee structure may vary accordingly on TD Ameritrade.
About TD Ameritrade
TD Ameritrade is a prominent online brokerage firm based in the United States. Established in 1975, the company provides a wide range of financial services including trading in stocks, ETFs (exchange-traded funds), mutual funds, options, futures, foreign exchange, and fixed income investments.
Their platform serves individual investors and offers a range of products and services such as margin lending, cash management services, and annuities. It is known for its innovative trading technology, user-friendly platform, and extensive educational resources. TD Ameritrade is a part of Charles Schwab Corporation following its acquisition. However, the TD Ameritrade brand continues to operate as a separate entity within the larger corporation.
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Final Thoughts
In conclusion, TD Ameritrade does not currently support direct purchases of cryptocurrencies like Bitcoin or Ethereum for its US-based clients. While the platform does offer indirect exposure to cryptocurrencies via stocks and trusts like Coinbase (COIN), Grayscale Bitcoin Trust (GBTC), and Grayscale Ethereum Trust (ETHE), these options do not allow for actual ownership or withdrawal of cryptocurrencies.
However, platforms like eToro, a FinCEN and FINRA-regulated crypto broker, can provide a viable alternative for direct crypto trading. Always bear in mind that TD Ameritrade's fee structure varies depending on the type of trade and asset, so factor in these costs before making an investment decision.
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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