td ameritrade singapore

TD Ameritrade Singapore 2022 Review: Best for Beginner Investors Keen on US Markets

TD Ameritrade Singapore is great for beginners interested in making investments in US markets. It is one of the leading online brokers that provide low-cost access to the US markets. TD Ameritrade focuses on selecting investment products such as futures, options, ETFs, and stocks.

It features beginner-friendly aspects with the feature-rich exchange platform, Thinkorswim. TD Ameritrade is well produced with high educational content with live professionals and multiple help channels. It also offers virtual trading to help test your trades without forgetting the Robo-adviser driven option for investors that seek a passive form of investing. Read on on how to invest in Singapore stocks.

What is TD Ameritrade?

TD Ameritrade is a brokerage firm that enables entrepreneurs to access the US markets. The platform provides exceptional services such as trading technology, free education, commission-free trading, and excellent customer services. Users on the platform can trade ETFs, options, stocks, futures, and futures through their award-winning thinkorswim market technology. 

Thinkorswim is an elite platform designed for serious traders which also comes in the form of a mobile app. The app allows clients to trade easily and stay connected to the market while on the go. 

TD Ameritrade caters to various experiences, from beginners to advanced traders. It offers free education, including live-in platform demonstrations where they teach their clients to utilize the power of the thinkorswim platform while still learning how to execute trading strategies.

TD Ameritrade also provides credible support through email, phone, online, or in person. All users have complimentary access to experienced customer associates specializing in trading derivatives from the US exchanges. 

TD Ameritrade is licensed by the Monetary Authority of Singapore and is a wholly-owned subsidiary of TD Ameritrade Holding Corp, empowering investors for more than 40 years. TD Ameritrade Holding Corporation is a subsidiary of the Charles Schwab Corporation.

 

What Fees Does TD Ameritrade Charge?

TD Ameritrade is eliminating fees in a bid to maintain a competitive edge to stay ahead of the competition. However, the zero-fees offer only applies if you are trading in US-listed ETFs and stocks. There is a minimum fee of US$7.44 per trade for online stock not listed on the US exchange. 

While this is not a large transaction fee, it might still eat into your margins. Fees on futures and options are also quite competitive at US$2.41 and US$0.70 per contract, respectively, with no exercise or assignment fees. It is also important to note that transfers from other brokerages or wire transfers may incur higher charges and transfer fees.

Type Fee
“Section 31” Fee  $0.0000051 per $1.00 of transaction proceeds
Hard to Borrow Fee (based on market conditions to borrow the security requested) Varies
Stock Option Exercise/Assignment (per strike) $0
Reorg and Tender Offers (per item)  $38
Warrant Exercise Fee  $38
Options Regulatory Fee (ORF)  $0.011261
Trading Activity Fee  $0.000119 per equity share

$0.002 per options contract

$0.00075 per bond

$0.00000075 x value per asset-backed security trade

Futures Options Exercise and Assignment Fee Futures commission + exchange fees
Reg T Extension $25
Forced Sell-out $25 + commission
Select Index Options Will Be Subject to an Exchange Fee Beginning 1/2/2020 Learn More
Paper Monthly Statements by US Mail $20
Paper Trade Confirmations by US Mail $20

 

What are the Pros and Cons of TD Ameritrade?

The Pros

  • Multiple help channels
  • Beginner-friendly and award-winning trading platform
  • Competitive pricing and low fees
  • Outstanding educational resources

The Cons

  • Does not offer a demo account
  • Limited account funding options when compared to other brokerage firms in Singapore

Is Trading in TD Ameritrade for You?

TD Ameritrade is best suited for entrepreneurs who are just starting or are looking for low-cost access to the U.S market. TD Ameritrade offers low brokerage fees for U.S trades and an excellent trading platform and tools with excellent educational resources. Here are some of the reasons why TD Ameritrade is for you:

1. Beginner-Friendly Trading Platform with Useful Features and Tools

TD Ameritrade has the Thinkorswim trading platform that works well for beginner entrepreneurs. It is available in three versions: mobile, desktop, and web. Thinkorswim also offers easy and clear trading powered by an intuitive user interface.

Its features offer a seamless trading experience, and you can also easily research while still creating your wish lists. Thinkorswim platform also has some outstanding features, including the ability to filter the stocks you want. You can also customize your trading options saved on the cloud, where you can access them from any device.

TD Ameritrade also has Essential Portfolios similar to a Robo adviser-driven investments method. Essential portfolios work exceptionally well for entrepreneurs who want to take advantage of the portfolio management by the platform.

2 .Offers Multiple Help Channels

When investing with TD Ameritrade, you have access to different helplines hence why you will never feel lost for too long. TD Ameritrade has 24/7 telephone support, and you can also have your questions answered through email and WhatsApp. TD Ameritrade website also has a comprehensive FAQ section that covers most of the questions that you might have.

3. TD Ameritrade Has Popular Trading Tools

Although TD Ameritrade does not have many trading instruments in the market, it does offer the most popular tools. You will have access to over 5,000 securities across multiple sectors and markets for exchange-traded funds and stock trades. TD Ameritrade also offers 50 futures products and services and a variety of options.

4. Exceptional Education Resources

This is another advantage for beginners or anyone looking to increase their investing knowledge. The platform offers education in webinars, courses, articles, and quizzes. The content is also well organized according to your skill level, which will help you learn according to your pace.

You can always read the articles and watch a video at your leisure and access the structured education with TD Ameritrade at any time. The firm also has its new studios, which feature professionals’ analysis and trading knowledge. Although TD Ameritrade does not offer a demo trading account, it offers a virtual trading feature you can use to test out your trading skills and improve your results.

5. Promotions

TD Ameritrade offers a transfer of up to US$100 if you open an account and transfer at least SU$3,500. You can also use a promo code to get the other rebates.

6. Top Security

TD Ameritrade offers its clients the highest level of protection of your investment.

How Do You Set Up an Account and Start Trading on TD Ameritrade?

signing up username with smart phone

Opening Your TD Ameritrade Account

Account opening process is straightfoward. You need to start by visiting their website and then click on “Open New Account” on the upper right corner of the TD Ameritrade Website. Follow the prompts to fill in the application form and submit your application. TD Ameritrade does not have MyInfo integration, so you must manually upload the verification documents. Here are the documents that you will need during your application.

  • Address validation
  • ID verification
  • Employment verification

Even though the account opening is easy, if you get a problem, you can contact their customer care hotline and they will help you out. 

Funding Your TD Ameritrade Account

You may fund your TD Ameritrade account using any of the following methods.

Funding method Crediting lead time Fees
DBS/POSB Electronic Transfer 2 to 3 working days  None
Cheque 3 to 5 working days Clearing fees may apply
Wire transfers 3 to 5 working days Wire transfer fees may apply

 

Please note:

  • All funding is for the TD Ameritrade account in Singapore only.
  • The platform does not accept third-party deposits. The bank account holder’s name has to match the name of the TD Ameritrade account holder.
  • There is no need to transfer funds unless the paperwork is approved. You will receive a welcome email notification confirming the approval of your TD Ameritrade account.

Related Questions

What is the Minimum Deposit Required to Open a TD Ameritrade Account?

TD Ameritrade requires no minimum deposit to open an account. However, they recommend that people start with US$3,500. If you deposit US$3,500 into your account, you will get a rebate of up to US$100.

You will also need US$25,000 in your account to actively day-trade, US$2,00 to have margin capabilities in your account, and US$5,000 to sell options naked. You will also need a minimum of US$500 to receive real-time data.

What Information is Needed to Open a New Account?

Singapore law requires financial institutions to obtain, verify and record all personal information on all the people during account opening process. This means you will be required to submit the following when you open your account.

  • Date of birth
  • Name
  • Address National Registration Identity card (NRIC)
  • A copy of your recent bank account statement

What is Two-Factor Authentication (2FA)?

Two-factor verification is a level of security for you and your account. It is a stronger form of identity validation and authentication. It uses:

  • The information is known to you, i.e., your ID and password
  • Something that you possess, such as your mobile phone.

The added layer of protection provided great security and made it more difficult for an attacker to access your account.

How Do I Enable 2FA?

First, log in to your account. Then click on your user profile and expand ‘Account Security Information.’ Under Second Factor Authentication, click ‘Yes.’ After that, you will be prompted to download the TD Ameritrade Authenticator app on your tablet or phone from Google Play Store or App Store.

Then log in to the TD Ameritrade Authenticator using your username and password to create your account on the platform’s website. Enter the code displayed online in your account to enable the two-factor Authentication section on the app when prompted. This will sync your phone or tablet to be the “Approver Device” to your account.

Once you enable 2FA, logging in to the thinkorswim desktop trading platform or the thinkorswim mobile application will require you to validate your access through a push notification sent to the approver device and take you through all the steps mentioned above.

What are “Specified Investment Products” (SIPs)?

SIPs are financial products with features, structures, and risks that may be more complex than other products. This means that retail investors do not easily understand it. 

There are two categories of SIPs and they include:

Listed SIPs

Examples of Listed SIPs include:

  • Exchange-Traded Notes (ETNs)
  • Exchange Trade Funds (EFTs)
  • Certificated
  • Structured Warrants
  • Options
  • Callable Bull/Bear Contracts (CBBCs)
  • Options

Unlisted SIPs

Examples of Unlisted SIPs include:

  • Leveraged Foreign Exchange
  • Over-the-Counter Products

What Criteria Is Used to Qualify the Customer Account Review (CAR) Investor?

The criteria to qualify a retail investor for the CAR include:

Educational Qualifications

You will need a diploma or a higher qualification in either of the following fields:

  • Actuarial Science
  • Accountancy
  • Capital Markets
  • Business Administration/Business studies/Business Management
  • Financial Engineering
  • Financial planning
  • Finance/Commerce/Economics
  • Financial Planning/ Computational finance and insurance
  • Professional fiancé-related qualification

Work Experience

You will need a minimum of 3 consecutive years of work experience. The work experience should include the provision of legal advice of possession of legal expertise in the development, structuring, sale, management, research, and analysis of investment products as defined by the Financial Advisers Act (Cap.110). Work experience in Actuarial Science, Accountancy, Treasury, or Financial Risk Management activities is also relevant.

Investment Experience

You will need to have completed more than 6 transactions in Listed SIPs in the preceding three years.

What Type of Products Can I Trade with TD Ameritrade Singapore?

TD Ameritrade Singapore offers a platform to trade in the US Exchange-listed shares, ETFs, listed indexes, and equity options. You can also apply to market futures after opening your margin account. Based on the Monetary Authority of Singapore regulation and the SGX minimum qualification requirement, the platform will set your product permission.

Can I Trade Mutual Funds at TD Ameritrade Singapore?

No. At least not at this time.

What are the Trading Hours for Stocks and Options?

ETF Trading and Equities

  • Pre-market:  7:00 AM – 9:28 AM ET
  • Day session:  9:30 AM – 4:00 PM ET
  • After-hours:  4:02 PM – 8:00 PM ET

Option Trading

  • 9:30 AM – 4:00 PM ET (most equity and narrow-based index options
  • 9:30 AM – 4:00 PM ET (most broad-based index options)

What are Basic Order Types?

There are three basic order types. They include:

Market Order

A market order allows you to buy and sell shares immediately at the available prices. Market orders are used when you want to get in and out of a position quickly. They are guaranteed for execution but not the price.

Limit Order

This is used to set a specific price to execute if the prevailing price is at that price or is better. They are usually placed under the current ask prices above the current bid price.

Stop Order

A stop order allows you to enter or exit a position once it reaches a specific price level.

Conclusion

TD Ameritrade account is great for beginner and advanced traders interested in trading in the US markets. It offers popular trading tools and multiple help channels for its clients. The platform also offers excellent educational resources organized according to the skill level and allows users to learn at their own pace.

Key Takeaways

  • The thinkorswim trading platform powers TD Ameritrade
  • Features excellent educational resources such as webinars, courses, and articles
  • Offer trading assets offered in the US markets

Are you in Singapore and need immediate cash for any emergency or personal purposes? Contact Instant Loan – your number one financial partner, and we will send three loan quotes within 30 minutes or less from top Singapore lenders for free!

Instant Loan CTA Banners DesktopInstant Loan CTA Banner 2