How To Buy Bitcoin And Crypto With TD Ameritrade

TD Ameritrade enables indirect exposure to cryptocurrencies via OTC trusts, mutual funds, ETFs, and Bitcoin futures.

However, it does not allow direct access to individual cryptocurrencies.

US investors can purchase crypto by connecting their bank accounts to a third-party broker like eToro, a platform regulated by FINRA.

eToro: Low fees, broad crypto selection, and security, offering a cost-effective investment choice with 80+ cryptocurrencies.

Can you buy crypto on TD Ameritrade?

Unfortunately, you can’t buy or trade cryptocurrencies on TD Ameritrade directly.

Although TD Ameritrade offers various products to gain indirect exposure to cryptocurrencies, you will need to connect to a FINRA-licensed cryptocurrency exchange to buy the underlying digital assets themselves.

How to buy crypto with TD Ameritrade?

eToro, a FINRA-licensed platform, is a top choice in the US, offering 70+ cryptocurrencies, Copy Trading, staking, and advanced analysis tools.

How to buy crypto with TD Ameritrade: Step-by-Step

You can get started with TD Ameritrade on eToro in minutes with four simple steps:

• Step 1: Create an account on eToro and complete your verification (personal or company);
• Step 2: Enter the USD amount you want to deposit on the eToro platform;
• Step 3: Connect your bank account to deposit your selected fiat currency;
• Step 4: The final step is to find the cryptocurrency you want to purchase and execute your trade.

About TD Ameritrade

TD Ameritrade is an online broker that offers a comprehensive selection of financial instruments, including $0 commissions on online stock and ETF trades.

The financial services company is headquartered in Omaha, Nebraska, US, and its parent company is Charles Schwab Corporation.

Products offered by TD Ameritrade include:

• Investments: Stocks, bonds, options, futures, ETFs, mutual funds, forex, foreign ADRs, IPOs for clients that qualify, as well as products with indirect exposure to crypto, such as Bitcoin futures;
• Educational content: Third-party research from highly respected sources, including the Federal Reserve Economic Database, Center for Financial Research and Analysis, Reuters, and Morningstar; “thinkorswim” trading platform, combining top-tier research tools, screening functions, and financial calculators as well as backtesting capabilities.

TD Ameritrade crypto trading

TD Ameritrade trading platform doesn’t currently offer trading individual cryptocurrencies; however, they do provide various ways to get indirect exposure to the cryptocurrency market:

OTC Trusts: customers can invest in shares of companies holding large amounts of cryptocurrencies, trading over-the-counter (OTC) like closed-end funds;

Mutual Funds and ETFs: customers can get indirect exposure to cryptocurrencies by investing in mutual funds and ETFs that invest in Bitcoin futures;

Bitcoin Futures: you can invest in Bitcoin futures with TD Ameritrade through Chicago Mercantile Exchange (CME). This option, however, requires your account to be approved for futures trading first – you can find more information on TD Ameritrade’s website.

TD Ameritrade crypto policy

While TD Ameritrade does provide exposure to the crypto market through products like Bitcoin or Ether futures, it doesn’t offer customers the chance to trade individual cryptocurrencies directly from its platform.

Luckily, TD Ameritrade crypto investors wanting to purchase digital assets can do so by going through FINRA-regulated crypto brokers, such as eToro.

TD Ameritrade trading fees

TD Ameritrade offers indirect crypto investment options without a wallet but has high fees, sometimes exceeding 2%.

For a more secure and cost-effective choice, consider eToro, with a 1% trading fee included in market prices.

Be aware of hidden fees like overnight charges and check eToro’s website for the latest rates.

Using TD Ameritrade may lead to extra bank charges, so consult your bank beforehand.

How to buy crypto safely

Cryptocurrencies are risky due to volatility, scams, and lack of regulation.

US broker-dealers follow FINRA rules, but crypto assets aren’t regulated.

Stay safe: research, use secure devices, strong security, cautious investing, and monitor crypto investments closely.

• Research the cryptocurrency you want to buy: Make sure you understand how it works and what the risks are;
• Only use a safe device: Use private devices, employ a VPN for secure connections, safeguarding sensitive information from public networks.
• Choose a reputable exchange: Choose regulated exchanges with good track records. Read terms, understand fund security, and check user reviews for potential issues.
• Secure your account: Use two-factor authentication and a strong password to protect your account;
• Use a secure wallet: Secure your crypto in hot (online) or cold (offline) wallets to guard against hackers. Refer to our guide for the best choice.
• Don’t invest money you can’t afford to lose: Start with cautious investments due to crypto volatility. Explore our guide on avoiding investment mistakes for further tips.
• Monitor your investments: Keep an eye on the market and be aware of any changes in the price of the cryptocurrency you’re investing in.

FAQs

Does TD Ameritrade have crypto?