How to Set Up Automatic Investment TD Ameritrade | Expert Guide

TD Ameritrade is one of the industry’s greatest online brokerages, with several lists naming it the best brokerage for novices. Thus, we have made this post on how to set up automatic investment TD Ameritrade to aid you. The golden globe thinkorswim marketplace is a favorite among active traders since it provides a strong but user-friendly tool suitable for pros and novices. TD Ameritrade’s extensive educational materials and superior customer service also contribute to its ranking as one of the finest online brokerages.

What is TD Ameritrade?

How to Set Up Automatic Investment TD Ameritrade

TD Ameritrade is a stockbroker that provides an algorithmic trading platform for capital asset trading. Stocks, preference shares, futures contracts, transfer funds, currencies, options, crypto, and mutual funds are examples.

In addition to this, they also provide fixed income holdings, margin loans, and consumer finance. The company generates revenue via interest on margin holdings, order execution charges, and market data compensation.

The company will become an entire affiliate of Charles Schwab Group by 2023. The company’s activities are being relocated to Schwab’s headquarters in Westlake, Texas.

Ameritrade, the company’s original name, was created in 1971. After purchasing TD Waterhouse’s US division from Toronto-Dominion Bank in 2006, TD Ameritrade was rebranded. In addition, Charles Schwab Corporation purchased it in 2020.

TD Ameritrade provides a plethora of free education to traders of all levels of expertise, from novice to experience. Clients may learn how to leverage the power of the thinkorswim system and how to execute their trading strategy via online and live-in-platform demos effectively.

TD Ameritrade also provides responsive, dependable, and knowledgeable customer support by phone, digital, and individual. All customers get free access to their knowledgeable support staff, which has expertise in trading derivatives on US markets. In a business built on great trust and confidence, TD Ameritrade is on the client’s side.

They have all the necessary licenses and are a part of TD Ameritrade Holding Corp, allowing investors to take charge of their financial lives for over 40 years.

At TD Ameritrade, can you enable an automatic investment plan?

At TD Ameritrade, can you enable an automatic investment plan?

Yes. At TD Ameritrade, investors may take advantage of a free automated investment plan (AIP). Any mutual fund may get enrolled for automated purchases with TD Ameritrade. Enrollment is possible for both load and no-load funds and transaction fee and no-transaction-fee funds.

TD Ameritrade offers over 13,000 mutual funds, 4,200 of which are commission-free. Stocks and ETFs, unfortunately, are not eligible for automated purchasing.

Dollar-Cost Averaging at TD Ameritrade

The automated investing plan offered by the broker is a kind of dollar-cost averaging. You make fixed-dollar purchases at regular periods using this money management approach.

When the NAV is low, you get more shares since the dollar amount is set, not the number of shares, as with stock or ETF transactions. That’s the major advantage of dollar-cost averaging.

The possibility to buy fractional shares, which is not allowed with ETFs or equities, is another benefit. For example, you may invest $50 every week in the Vanguard Balanced Index fund, VBINX. On the first purchase, there is a $49.99 transaction charge.

You must first purchase the fund before you may make automatic contributions. Only the first purchase is subject to the transaction charge. There is no additional charge for automatic investments.

Regular Purchases Funding

You’ll need to finance these transactions if you intend to sign up for automated mutual fund purchases. The TD Ameritrade website offers a simple money transfer tool for setting up regular transfers into a brokerage account.

Recurring operations at the company might be done weekly, every week or so, monthly, fortnightly, semi-annually, or yearly. There are more unusual options, such as the third Friday of the month.

How to Set Up a TD Ameritrade Automated Investment

How to Set Up a TD Ameritrade Automated Investment

To set up an automated investment with TD Ameritrade, you must first phone the company. You’ll get a printed form from the broker, which you’ll need to fill out and return.

The purchase must be at least $50. Weekly, semi-monthly, monthly, quarterly, semi-annually, or yearly might be the frequency of the recurrent investment. Many accounts may use this free service. There is also no law regarding how many mutual funds may be registered.

If you wish to alter or cancel your AIP at any time in the future, all you have to do is phone TD Ameritrade and request a modification.

TD Ameritrade commissions

For internet equity and sharing fund (ETF) operations, TD Ameritrade, such as the remainder of its primary competitors, imposes no margin requirements. The brokerage levies commissions and costs. However, they are comparable to those paid by other businesses.

  • $0.65 per contract as an option
  • $2.25 per transaction in futures and futures options
  • OTC stock transactions are $6.95 each.
  • Trades facilitated by a broker are charged a fee of $25 per transaction.

TD Ameritrade’s 13,000 unit trusts include over 4,000 no-load, no-transaction-fee options. This one outperforms other internet brokers’ fund selections.

Remember that, like some of its competitors, TD Ameritrade charges $49.99 if you dispose of most no-fee, no-load ETFs for 6 months following acquisition. Some individuals may choose shorter holding periods, like those provided by E*TRADE.

TD Ameritrade offers the foremost margin rates of the brokerage firms we looked at. Costs for accounts under $10,000 are 9.50 %, while charges for balances between $10,000 and $25,000 are 9.25 %.

The smallest margin charges (6.75 percent) are available to borrowers lending over $1 million. For example, the low-fee champion Interactive Brokers imposes a flat price of 2.60 % for all excess lending.

TD Ameritrade’s fees

TD Ameritrade is in the center of the league by the service fees. Outgoing wires are $25, a complete account transfer is $75, and monthly hardcopy statements are $2. Lack of activity or getting a formal confirmation letter is not subject to penalties.

Trade traffic is also taken into account by TD Ameritrade. This is a procedure in which brokerages are paid for processing trades via certain market makers at exchanges.

This has resulted in some clients not receiving the greatest price for their assets in the past. For example, if a brokerage chooses the market maker with the highest compensation above the one with the greatest pricing for their client.

On the other hand, TD Ameritrade recently won a case that found “TD Ameritrade had failed to comply with its responsibility to seek the best execution for client stock transactions.”

Frequently Asked Questions

Can I set up an automatic investment with TD Ameritrade?

Yes. The suggestions on setting up automatic investment TD Ameritrade listed above will be quite helpful in this regard.

Would there be a fee associated with utilizing TD Ameritrade?

Through TD Ameritrade, you may execute trades, futures, and ETFs for nothing. Lack of activity or annual moves out of your business incurs no penalties, and partly transactions out of your account incur no fees. To get your entire balance out, you’ll pay $75.

Option transactions carry a $0.65 per-contract cost, a standard price across brokers and exclusively levied on options trading.

Certain assets, such as mutual funds and exchange-traded funds (ETFs), have internal costs known as expense ratios. The ETFs, not TD Ameritrade, are responsible for these costs.

On TD Ameritrade, how do you purchase stock?

For stock investments, TD Ameritrade offers two marketplaces and a smartphone app. placing a stock order on the company’s website is the simplest and most acceptable solution for novice investors. Once you’ve funded your wallet, check for the portfolio’s stock ticker and send out an entry receipt with your counteroffer.

The thinkorswim desktop platform is preferred by advanced stock traders. This is a powerful platform with many tools for analyzing and planning your transactions.

Is TD Ameritrade a free service?

TD Ameritrade provides commission-free stock and no yearly or inactivity fees. Thus, you may keep your account open for free.

What is TD Ameritrade’s revenue model?

Like other brokers who don’t earn commissions on equity or ETF transactions, TD Ameritrade earns its profit from items that do.

 For futures and currency trading, the business charges a fee. This is on top of the company’s robot-advisor and financial advising services and broker-assisted transactions.

On uninvested cash balances, the corporation also receives interest. It may also be compensated for order flow, which happens when a broker sends transactions to a third-party market maker for a minor fee.

Does TD Ameritrade offer account insurance?

Yes. For most investors, account insurance is more than enough. As an extra buffer against firm collapse or insolvency, TD Ameritrade automatically provides $149.5 million in supplementary insurance to each client.

Further protection of upwards of $2 million is given for cash holdings. Clients ought to be aware that no stockbroker provides protection to cover treasury bonds from damages suffered due to bad investing selections or price volatility.

Who should use TD Ameritrade?

Both beginner and seasoned investors will find TD Ameritrade a good fit. This is particularly true for individuals seeking a full-featured online broker with excellent instructional materials. It isn’t easy to top the thinkorswim trading platform.

Customization, graphing, and analytical tools are easily accessible on mobile and desktop. It also includes access to trade experts and excellent customer support to assist you quickly and properly answer any queries you may have.

Screeners that are well-designed assist users in narrowing down the large universes of funds, equities, and bonds to discover the assets they want.


In conclusion, TD Ameritrade provides various merits. If you want more assistance, the following focus on how to set up an automatic investment with TD Ameritrade will be of great use.