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How to buy Crypto with TD Ameritrade

How to buy Crypto with TD Ameritrade

Andrew Chen
Fact Checked
Sep 1, 2022

Summary: TD Ameritrade does not offer any products or servives that enable its customers to buy and sell cryptocurrencies. They only allow users to buy stocks that have exposure to digital assets.

If you want to buy and trade Crypto, you will need to sign up to a licensed and regulated digital asset exchange in the US like eToro.

Table of Contents

Platform Highlights

  • Trade 8,000+ Stocks, ETFs and 80+ Cryptocurrencies.
  • Zero trading fees and tighter spreads than TD Ameritrade.
  • Trusted and licensed multi-asset broker in the United States.

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 eToro platform. They offer over 8,000 Stocks, ETFs, Commodities and 80+ Cryptocurrencies to buy, sell and trade with zero fees. Their platform is the largest and most popular multi-asset brokerage in the USA for traditional and digital asset investors.

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

  1. Create an account: Sign up to the eToro US trading platform.
  2. Deposit funds: Select the 'Deposit Funds' button on the bottom of your screen to deposit USD via bank transfer, debit card or credit card.
  3. Find your Crypto: Once the USD hits your account, find the Crypto you want to buy on the eToro platform with their 'Discover' tab.
  4. Execute your trade: Input the USD amount you want to invest and execute your trade.

TD Ameritrade Fees

If you are interested in buying cryptocurrency exposure via TD Ameritrade, you will be subject to trading fees on the platform. Fortunately, TD Ameritrade is completely commission-free meaning users do not pay any fees to trade on the platform.

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.

In September 2018, TD Ameritrade announced that it would acquire Scottrade for $4 billion in an all-stock transaction. The acquisition was completed in October 2016. As part of the deal, TD Ameritrade acquired Scottrade's online brokerage business and branches, as well as its investment advisory business.

Following the acquisition, TD Ameritrade became one of the largest US-based discount brokers with over 11 million client accounts and $1.3 trillion in assets under management as of Q2 2022.

Andrew Chen

Former Bitcoin Maximalist turned multi-chain enjoyer. I hunt down the best yields across AVAX, Solana, Fantom and other networks.

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