Forex.Com Vs TD Ameritrade

Category: Broker Guides | Author: Trading Brokers | Date: July 19, 2023

Forex.com and TD Ameritrade are two online trading platforms that offer forex trading and other financial instruments. Both brokers have a long history and a strong reputation in the industry, but they also have some differences that may appeal to different types of traders. In this article, we will compare Forex.com and TD Ameritrade based on various criteria, such as fees, platforms, markets, features, and customer service. We will also highlight the pros and cons of each broker and provide some tips on how to choose the best one for your trading needs.

Overview of Forex.Com

FOREX.com

FOREX.com

Forex.Com is a US-based online trading platform that was founded in 2001. It is a subsidiary of StoneX Group Inc., a Fortune 100 financial giant with revenues exceeding $54 billion. Forex.Com offers access to over 500 markets, including forex, cryptocurrencies, stocks, indices, commodities, and more. The platform stands out for its advanced trading technology and tools, providing traders with a competitive edge. Notable features include TradingView charts, Performance Analytics, SMART Signals, and Capitalise.ai, empowering users with sophisticated analysis and automation capabilities. Maintaining regulatory compliance across various jurisdictions, Forex.com operates under the oversight of esteemed regulatory bodies such as the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC) in Australia, and the Investment Industry Regulatory Organization of Canada (IIROC) in Canada.

Pros of Forex.Com

  • Commission-free trading on forex and cryptos
  • Low fees on stocks and indices
  • Wide range of assets to trade
  • Advanced trading technology and tools
  • Extensive educational resources

Cons of Forex.Com

  • High spreads on some assets
  • A withdrawal fee of $25 for wire transfers
  • Limited social trading features
  • No direct customer support phone line
  • High minimum deposit of $2,000 for futures accounts
Forex.com Logo

Since 2001, Forex.com has been providing traders around the globe with industry leading trading conditions including user-friendly platforms, tight spreads, low commission fees, rapid trade execution speeds. The broker is regulated in multiple jurisdictions and has a huge selection of trading instruments, powerful tools and educational materials.

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Overview of TD Ameritrade

TD Ameritrade

TD Ameritrade

TD Ameritrade is a US-based online trading platform that was founded in 1975 by Joe Ricketts. It is one of the largest brokers by trade volume and client assets. TD Ameritrade offers access to over 150 markets, including forex, cryptocurrencies, stocks, options, futures, bonds, and more. The platform’s commitment to cost-effectiveness is evident through its low-cost investing philosophy, enabling clients to optimize their investment returns while minimizing expenses. TD Ameritrade’s success is further amplified by its award-winning trading platform and mobile app, which boasts innovative features such as a pattern recognition scanner, a client sentiment tool, a comprehensive news feed, and customizable alerts. These advanced tools empower traders with real-time insights and analysis to make informed decisions.

Regulatory compliance is a key priority for TD Ameritrade, as it operates under the supervision of esteemed authorities worldwide. Notable regulatory bodies overseeing its operations include the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, the Australian Securities and Investments Commission (ASIC) in Australia, and the Monetary Authority of Singapore (MAS) in Singapore.

Pros of TD Ameritrade

  • Commission-free trading on stocks, ETFs, and options
  • Low spreads on Forex
  • Wide range of assets to trade
  • Award-winning trading platform and mobile app
  • Dedicated customer service

Cons of TD Ameritrade

  • High fees on futures contracts
  • Limited asset selection
  • No social trading features
  • The complex pricing structure for some services
  • The high minimum deposit for some products
TD Ameritrade Logo

TD Ameritrade is one of the best brokers in the USA with a fantastic range of investment products, powerful platforms, high quality tools and an abundance of educational resources to help you make informed decisions.

All investments involve risk, including loss of principal. Past performance does not guarantee future results.

Comparison between Forex.Com and TD Ameritrade

In this section, we will compare Forex.Com and TD Ameritrade based on the following features:

Regulation

Forex.com is regulated by ASIC, CIMA, CFTC, FCA, FSA, IIROC, JFSA, NFA, and SFC. In contrast, TD Ameritrade is regulated by ASIC, CIMA, FCA, FINRA, IIROC, MAS, NFA, and SFC. Both brokers adhere to stringent regulatory standards, providing traders with a secure environment for their investment activities.

Trading Platform

Forex.com offers a web-based platform that supports advanced charting, research, and analysis tools. Users can also access the platform through a mobile app for iOS and Android devices. TD Ameritrade provides multiple platforms for different levels of traders, including the web-based Trade Architect, the desktop-based thinkorswim, and the mobile app TD Ameritrade Mobile. All platforms offer advanced charting, research, and analysis tools.

Pricing and Fees

Both Forex.Com and TD Ameritrade offer commission-free trading on forex and cryptos, which is a great advantage for traders who want to save on costs. Forex.Com charges low fees on stocks and indices, but it has high spreads on some assets, such as commodities and currencies. It also charges a withdrawal fee of $25 for wire transfers. TD Ameritrade charges commission-free trading on stocks, ETFs, and options, but it has high fees on futures contracts. It also has complex pricing structures for some services, such as brokerage accounts, managed portfolios, savings accounts, and more.

Broker Type

Forex.com is a market maker broker, which means it acts as the counterparty to its clients’ trades and may have a conflict of interest. TD Ameritrade is a hybrid broker, which means it uses both market makers and ECN (electronic communication network) providers to execute its clients’ orders.

Leverage

Forex.com offers leverage up to 1:50 for forex trading. However, leverage is restricted to 1:30 for EU clients due to regulatory limitations. TD Ameritrade offers leverage up to 1:50 for forex trading.

Asset Selection

Forex.com offers a wide range of assets to trade, including over 50 currency pairs, over 15 commodities, over 10 indices, over 100 cryptocurrencies, and 40 crypto pairs. TD Ameritrade also has a diverse asset selection, including over 70 currency pairs, over 300 mutual funds, over 10 commodities, over 20 indices, over 40 options strategies, and over 70 futures products.

Social Trading

Forex.com does have a social trading platform, but it is not integrated into its main trading platforms. It is called Trade Signals, and it is powered by Autochartist, a third-party provider of automated technical analysis and trade ideas for forex and CFDs. You can access Trade Signals from the Forex.com website or app, and you can choose to follow the signals of other traders or create your own. Users can also access TradingView, a popular social network for traders, from the Forex.com web platform.

TD Ameritrade has a more integrated approach to social trading, as it allows users to see and communicate with other traders who post their strategies, opinions, and positions on the thinkorswim platform. Users can also access myTrade, a community forum where they can share ideas and insights with other traders. Additionally, TD Ameritrade offers TipRanks, a tool that aggregates the ratings and opinions of analysts, bloggers, news, and investors on various stocks.

Minimum Deposit

Forex.com has a minimum deposit of $100 for US clients, and $50 for UK and Australian clients. TD Ameritrade has no account minimum for most accounts, except for futures trading which requires a $25,000 minimum.

Withdrawal and Deposit Methods

Both Forex.Com and TD Ameritrade offer various withdrawal and deposit methods for their users. Forex.Com supports withdrawal and deposit methods such as credit/debit cards, bank transfers, PayPal, Skrill, Neteller, and more. However, it charges a withdrawal fee of $25 for wire transfers regardless of the amount or method used. It also has a minimum withdrawal amount of $100. TD Ameritrade supports withdrawal and deposit methods such as bank transfers, checks, ACH transfers, wire transfers, and more. However, it does not support credit/debit cards or online payment services like PayPal. It also charges fees for some methods such as wire transfers ($10 for domestic wires and $40 for international wires).

Which Should You Choose: Forex.Com or TD Ameritrade?

The decision between Forex.com and TD Ameritrade depends on your personal preferences, goals, and needs as a trader or investor. However, here are some general guidelines that can help you make an informed decision: If you are a beginner or casual trader seeking access to a variety of assets with simple clicks or taps, zero commission on forex and cryptocurrency trading, advanced trading technology and tools, and a low minimum deposit requirement, Forex.com may be the preferred option for you. Forex.com offers a user-friendly interface that simplifies trading execution and provides access to a wide range of forex and cryptocurrency trading options. It also offers advanced trading technology and tools to assist traders in their analysis and decision-making processes.

Conversely, if you are an investor looking to access various financial products and services with a low-cost investing philosophy, personalized advice, commission-free trading on stocks, ETFs, and options, high-quality investment products, and dedicated customer service, TD Ameritrade might be a better fit. TD Ameritrade focuses on providing investors with a diverse selection of investment options, including stocks, ETFs, and options, with a reputation for low-cost investing. It also emphasizes personalized advice and offers dedicated customer service to support investors’ needs.

Conclusion

In this article, we have compared two of the most well-known and widely used online trading platforms: Forex.Com and TD Ameritrade. We have looked at their backgrounds, pros, and cons, and how they differ in terms of regulation, trading platform, pricing and fees, leverage, asset selection, social trading, minimum deposit, and withdrawal and deposit methods. We have also provided some general guidelines on which platform suits you better depending on your preferences, goals, and needs. However, the final choice is yours to make based on your own research and due diligence. We hope this article has been helpful and informative for you. Happy trading!


Relevant Articles