IG Vs TD Ameritrade

Category: Broker Guides | Author: Trading Brokers | Date: July 22, 2023

In the world of online trading, investors have a wide array of choices at their fingertips. In this comprehensive comparison article, we delve into the offerings of two prominent trading platforms: IG and TD Ameritrade. By exploring their key attributes, including trading platforms, fees, asset selection, regulation, and leverage, we aim to provide valuable insights to assist you in making an informed decision that aligns with your individual trading goals and preferences. Join us as we delve into the detailed examination of IG and TD Ameritrade to uncover their strengths and limitations, allowing you to select the platform that suits your specific trading needs.

Overview of IG

IG

IG stands out as a trading platform that provides access to a wide range of markets and products. With two top trading platforms available, IG caters to the diverse needs of traders. The web-based IG Trading Platform offers an intuitive interface and customizable features, allowing users to tailor their trading environment. The MT4 platform, widely used by traders worldwide, provides advanced charting tools and automated trading features.

IG’s market coverage is one of its notable strengths, with access to over 17,000 markets across various asset classes, including forex, shares, indices, commodities, and cryptocurrencies. This broad market reach enables traders to diversify their portfolios and explore various investment opportunities. To support traders in their decision-making process, IG offers a wide range of research tools, such as news feeds, market analysis, and trading signals. These resources help traders stay informed about market trends and make well-informed trading decisions. Additionally, IG places great emphasis on education, providing traders with access to webinars, courses, and comprehensive trading guides to enhance their knowledge and skills. With customer support available through phone, email, and live chat, IG ensures prompt assistance for any queries or concerns.

Pros of IG

  • Wide range of markets and products, providing ample diversification opportunities.
  • User-friendly trading platforms with customizable interfaces.
  • Extensive research tools, including news feeds, market analysis, and trading signals.
  • Comprehensive educational resources, such as webinars, courses, and trading guides.
  • Multiple customer support channels for prompt assistance.

Cons of IG

  • Higher fees compared to some other platforms, particularly for credit card deposits.
  • Limited focus on the US market, which may not suit traders seeking specific US-based investment options.
IG Logo

IG have an impressive selection of 18,000+ instruments including Forex, Stocks, Cryptos and Commodities. You can trade via easy to use platforms for desktop and mobile apps, with low trading costs and the peace of mind that you are using one of the most well-known brokers in the industry.

69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.

Overview of TD Ameritrade

TD Ameritrade

TD Ameritrade

TD Ameritrade, established in 1971, is a stockbroker offering an electronic trading platform for various financial assets. The company expanded its operations and was renamed TD Ameritrade after acquiring the US operations of TD Waterhouse in 2006. With a focus on investment and trading services, TD Ameritrade serves over 11 million client accounts, totaling more than $1 trillion in assets.

TD Ameritrade offers a simple web-based trading interface, complemented by a corresponding mobile app, as well as the highly regarded thinkorswim trading platform available on desktop, web, and mobile versions. The thinkorswim platform has gained recognition for its advanced features and analytical capabilities, providing traders with a comprehensive set of tools to analyze and execute trades effectively. Additionally, TD Ameritrade provides custodial services for more than 6,000 independent registered investment advisors, expanding their reach to a wider client base.

Traders on TD Ameritrade have access to a broad range of investments, including futures, forex, IPOs, and bitcoin futures trading for approved clients. This comprehensive offering allows traders to diversify their portfolios and explore various investment opportunities within a single platform.

Pros of TD Ameritrade

  • Wide range of financial instruments, including stocks, futures, options, ETFs, and forex.
  • Highly regarded thinkorswim trading platform, known for its advanced tools and analytical capabilities.
  • Comprehensive research and educational resources to support traders’ decision-making.
  • Availability of custodial services for independent registered investment advisors.
  • Strong regulatory oversight and reputable background.

Cons of TD Ameritrade

  • Some transaction fees, such as Reg Fees, that may be applicable depending on the specific transactions.
  • Limited focus on markets outside of the US, which may not provide as much global market exposure.
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 IG and TD Ameritrade

Let us unveil the similarities and differences between IG and TD Ameritrade to help you make an informed choice for your online trading endeavors.

Regulation

IG and TD Ameritrade are both well-regulated brokerage options. IG falls under the oversight of ASIC, FCA, MAS, and FSCA, demonstrating its commitment to operating under stringent regulatory frameworks in Australia, the UK, Singapore, and South Africa. On the other hand, TD Ameritrade operates within the regulatory purview of multiple authorities, including the SEC, FINRA, CFTC, NFA, and MSRB in the United States. These extensive regulatory affiliations underscore the dedication of both IG and TD Ameritrade to maintaining secure and compliant trading environments for their clients.

Trading platforms

IG and TD Ameritrade are two popular online brokers that offer different trading platforms for their clients. IG’s platforms are IG Trading Platform, IG ProRealTime, and IG Trading App, while TD Ameritrade’s platforms are TDAmeritrade.com, thinkorswim, and TD Ameritrade Mobile. Both brokers have web-based desktop, and mobile platforms that are easy to use, customizable, and feature-rich. However, IG’s platforms are more focused on forex and CFD trading, while TD Ameritrade’s platforms offer a wider range of products such as stocks, ETFs, options, futures, and mutual funds.

Pricing and fees

IG charges commissions based on the spread, which is the difference between the bid and ask prices of a currency pair or other asset. The spread varies depending on the market conditions and the type of account. IG also charges fees for some services, such as overnight funding, currency conversion, inactivity, and withdrawal. TD Ameritrade offers commission-free trading for stocks, ETFs, and options in the US. However, it charges $0.65 per contract for options trading, $2.25 per contract for futures trading, and $25 for broker-assisted trades. TD Ameritrade also has higher margin rates than some of its peers, ranging from 6.75% to 9.50% depending on the account balance.

Broker Type

IG is a market maker broker, meaning it acts as the counterparty to its clients’ trades. As a market maker, IG provides liquidity and executes trades internally, which can result in faster execution times and potentially lower costs for traders. TD Ameritrade, on the other hand, uses Apex Clearing Corporation as its clearing broker, which helps facilitate the clearing and settlement of trades. This arrangement allows TD Ameritrade to focus on providing trading platforms and services while relying on Apex Clearing Corporation for the operational aspects of clearing and settlement.

Leverage

IG offers leverage up to 1:200 for forex trading, 1:20 for stock CFDs, 1:10 for commodity CFDs, and 1:5 for cryptocurrency CFDs. The leverage ratio depends on the account type, the asset class, and the market volatility. IG also provides negative balance protection for retail clients in the UK and EU, which means that they cannot lose more than their initial deposit.

TD Ameritrade offers leverage up to 1:50 for forex trading and 1:4 for stock trading on margin. The leverage ratio depends on the account type, the asset class, and the market conditions. TD Ameritrade does not offer negative balance protection, which means that clients are responsible for any losses that exceed their account balance.

Asset selection

IG provides a wide range of tradable assets, offering opportunities in various financial markets. Their asset selection includes forex (foreign exchange), shares (stocks), indices, commodities, cryptocurrencies, options, ETFs (exchange-traded funds), bonds, and interest rates. This diverse range of assets allows traders to diversify their portfolios and take advantage of different market opportunities. TD Ameritrade also offers a broad range of assets, including stocks, options, ETFs, mutual funds, futures, forex, and bonds, catering to a variety of investment and trading strategies.

Social Trading

IG offers a basic social trading and copy trading feature through its IG Community platform and IGTV service. IG Community allows clients to interact with other traders, share ideas, and follow popular traders. IGTV provides live market updates, analysis, and commentary from IG experts and guests. TD Ameritrade does not offer a dedicated social trading or copy trading platform. However, it provides access to third-party services such as TradeWise and Motley Fool that offer trade recommendations and alerts. TD Ameritrade also has an online chat room called Trader TV where clients can watch live streams of market news and analysis.

Minimum Deposit

IG does not have a minimum deposit requirement for opening an account. However, it recommends that clients deposit at least $250 or equivalent to start trading. IG does not impose a minimum deposit requirement for share dealing accounts, allowing traders to start trading stocks with any amount they choose. TD Ameritrade, in comparison, does not require a minimum deposit, making it accessible to traders with different budget sizes and investment goals.

Withdrawal and Deposit methods

IG supports a variety of deposit and withdrawal methods to cater to its global clientele. Traders can fund their accounts using bank transfers, credit/debit cards, PayPal, and Skrill. However, availability may vary depending on the country of residence. Similarly, withdrawals can be made via bank transfer or check. TD Ameritrade accepts deposits through bank transfers, checks, and debit/credit cards. Withdrawals can be made via bank transfer or check as well. It’s important to note that processing times and fees may vary depending on the chosen method and location.

Which is better for you?

Determining which platform, IG or TD Ameritrade, is better for you depends on your specific trading requirements and preferences. If you value access to a wide range of markets, a user-friendly trading interface, and superior market research capabilities, IG might be the better option for you. IG’s extensive market coverage, customizable trading platforms, and comprehensive research tools provide a solid foundation for traders seeking diverse investment opportunities and in-depth market analysis. Additionally, IG’s commitment to education ensures that traders have the resources needed to enhance their skills and stay informed.

On the other hand, if you prioritize advanced trading tools, such as the highly regarded thinkorswim platform, and a comprehensive research and education platform, TD Ameritrade could be the preferable choice. TD Ameritrade’s thinkorswim platform offers a wealth of analytical capabilities and features, catering to more experienced traders who require advanced tools for technical analysis and strategy development. Furthermore, TD Ameritrade’s research and education resources provide a comprehensive learning experience, empowering traders with valuable insights and knowledge to support their trading decisions.

Conclusion

In conclusion, both IG and TD Ameritrade offer distinct advantages and features to traders in the online trading arena. IG provides access to a wide range of markets, user-friendly trading platforms, and superior market research capabilities. On the other hand, TD Ameritrade offers advanced trading tools, including the highly regarded thinkorswim platform, and a comprehensive research and education platform. Your decision between IG and TD Ameritrade should be based on your specific trading preferences, goals, and priorities. Carefully evaluate the factors discussed in this comparison article to make an informed choice and select the platform that aligns best with your individual trading needs.


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