Welcome to the world of cryptocurrency trading! As an investor, you may wonder if you can trade crypto on one of the most popular online brokerages, TD Ameritrade. This article will delve into everything you need to know about crypto trading on TD Ameritrade, including the available options, fees, and potential risks.
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TD Ameritrade and Cryptocurrency Trading
TD Ameritrade has taken a cautious approach to cryptocurrency trading and does not offer direct access to cryptocurrencies on its platform. However, it does allow clients to trade crypto through third-party platforms. This means you can use TD Ameritrade to access cryptocurrencies without having to create a separate account with a crypto exchange.
Trading through Third-Party Platforms
TD Ameritrade has partnered with Coinbase, one of the largest crypto exchanges in the world. This partnership allows TD Ameritrade clients to trade select cryptocurrencies on the Coinbase platform through the TD Ameritrade website or mobile app. Currently, the following cryptocurrencies are available for trading:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
Fees and Commissions
When trading crypto on TD Ameritrade, you will be subject to the following fees:
- Trading commission: 0.25% per trade
- Spread: The spread is the difference between the bid and ask prices of a cryptocurrency. Spreads vary depending on market conditions.
- Coinbase custody fee: Coinbase charges a custody fee of 0.04% per year on all assets held in its custody.
Advantages and Disadvantages of Crypto Trading on TD Ameritrade
Advantages
- Convenience: Trading crypto on TD Ameritrade is convenient as you can access it through the same platform you use for other investments.
- Regulation: TD Ameritrade is a regulated broker, which provides a level of protection for investors.
- Security: Coinbase, the third-party platform used by TD Ameritrade, has robust security measures in place to protect user funds.
Disadvantages
- Limited selection: TD Ameritrade only offers a limited number of cryptocurrencies for trading.
- Higher fees: The trading commission and spread can be higher than on dedicated crypto exchanges.
- Limited functionality: You may have limited access to advanced trading features and charting tools compared to dedicated crypto exchanges.
Alternatives to TD Ameritrade for Crypto Trading
If you are looking for a platform with a wider selection of cryptocurrencies, lower fees, and more advanced trading tools, you may consider the following alternatives:
- Coinbase
- Binance
- Kraken
- Gemini
- FTX
Competition Comparison: TD Ameritrade vs. Other Platforms
| Feature | TD Ameritrade | Coinbase | Binance | Kraken | Gemini | FTX |
|---|---|---|---|---|---|---|
| Number of Cryptocurrencies | 4 | 150+ | 600+ | 280+ | 100+ | 300+ |
| Trading Commission | 0.25% | 0.5% | 0.1% | 0.16% | 0.35% | 0.02% |
| Spread | Varies | Varies | Varies | Varies | Varies | Varies |
| Custody Fee | 0.04% per year | Included in trading commission | 0.04% per year | 0.02% per year | 0.12% per year | 0.01% per year |
| Advanced Trading Features | Limited | Available | Available | Available | Available | Available |
| Regulation | Regulated | Regulated | Regulated | Regulated | Regulated | Regulated |
Conclusion
Trading crypto on TD Ameritrade has its advantages and disadvantages. While it provides convenience and regulation, it has a limited selection of cryptocurrencies and higher fees. If you are looking for a wider selection, lower fees, and more advanced trading features, you may consider trading on a dedicated crypto exchange. Ultimately, the best platform for you will depend on your individual needs and preferences.
Check out our other articles for more information on crypto trading:
- [How to Buy and Sell Cryptocurrency]
- [The Ultimate Guide to Cryptocurrency Trading]
- [Top Cryptocurrency Exchanges Compared]
FAQ about Can I Trade Crypto on TD Ameritrade
Can I trade crypto on TD Ameritrade?
Yes, TD Ameritrade offers cryptocurrency trading through its subsidiary, TD Ameritrade Crypto.
What cryptocurrencies can I trade on TD Ameritrade?
TD Ameritrade Crypto currently supports trading in Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Stellar.
What are the fees for trading crypto on TD Ameritrade?
TD Ameritrade charges a maker-taker fee structure. Maker fees are 0.1% and taker fees are 0.2%.
Is there a minimum investment amount for trading crypto?
Yes, the minimum investment amount for trading crypto on TD Ameritrade is $10.
How do I open a TD Ameritrade Crypto account?
You can open a TD Ameritrade Crypto account online through TD Ameritrade’s website or mobile app.
How do I transfer crypto to my TD Ameritrade Crypto account?
You can transfer crypto to your TD Ameritrade Crypto account from an external wallet or exchange.
How do I withdraw crypto from my TD Ameritrade Crypto account?
You can withdraw crypto from your TD Ameritrade Crypto account to an external wallet or exchange.
How is crypto stored on TD Ameritrade Crypto?
TD Ameritrade Crypto uses a combination of hot and cold storage to ensure the security of its customers’ assets.
Is crypto trading insured on TD Ameritrade Crypto?
No, crypto trading on TD Ameritrade Crypto is not insured by the FDIC or SIPC.
Is crypto trading on TD Ameritrade Crypto regulated?
Yes, TD Ameritrade Crypto is regulated by FinCEN and is a member of the Blockchain Association.
