The post TD Ameritrade Forex Trading by Jay and Julie Hawk appeared first on Benzinga. Visit Benzinga to get more great content like this.
Those interested in what TD Ameritrade forex-related offerings are available will not be disappointed. A major attraction of dealing forex via TD Ameritrade is that the online broker lets you use the broker’s excellent thinkorswim® trading platform that is available in desktop, web and mobile versions.
If you’ve ever considered broadening your trading horizons by adding forex trading, TD Ameritrade is a reputable broker with a great platform that includes options. The broker also gives often-neglected traders based in the U.S. and Canada an excellent opportunity to operate in the huge forex market.
In this article, Benzinga evaluates TD Ameritrade’s forex services so you can determine whether the broker is a good fit for your currency trading needs.
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Can I Trade Forex With TD Ameritrade?
Yes, TD Ameritrade now lets you access forex trading through Charles Schwab Futures and Forex LLC. The forex trading entity recently changed its name from TD Ameritrade Futures & Forex LLC in September 2021 after Charles Schwab finalized its purchase of TD Ameritrade in October 2020.
You can trade currencies 24 hours a day during the six-day forex trading week via Charles Schwab Futures and Forex in as many as 70 different currency pairs and in standard lot increments of 10,000 base currency units.
In addition, you can trade currency futures and options on select currency pairs through Charles Schwab Futures and Forex. This access also includes the ability to trade micro futures contracts that are just one-tenth the size of a regular currency futures contract.
Does TD Ameritrade Charge Fees for Forex?
TD Ameritrade does not charge any hidden fees or have a complicated pricing structure. At TD Ameritrade, forex fees or trading commissions do not get charged in the same way a stockbroker charges a commission on stock trades, for example.
Instead, you will pay away a dealing spread to do a forex transaction, as is standard practice with online forex brokers. This means you will pay the offer side to buy a currency pair and sell the pair at the bid side when making transactions in the forex market.
Charles Schwab Futures and Forex uses an electronic communication network (ECN) model. This means the broker gives you a competitive bid/offer dealing spread based on currency pair quotes obtained from four major forex market makers.
Can I Use MT4 With TD Ameritrade?
No, TD Ameritrade does not support the popular MetaTrader4 (MT4) or MetaTrader5 (MT5) trading platforms, which can present a substantial issue for those looking to use their MT4 or MT5 expert advisors with the broker.
Fortunately for other traders, though, the broker’s excellent thinkorswim trading platform has many of the same sophisticated technical analysis features found on the MetaTrader trading platforms.
The thinkorswim trading platform was developed by traders for traders. It features cutting-edge desktop, web and mobile applications. The platform is fully customizable and is continuously improved based on feedback given by TD Ameritrade’s community of traders.
How Much Leverage Does TD Ameritrade Give for Forex?
One of the biggest advantages of trading forex has been the high leverage you can apply to your trading, although using leverage can magnify your losses as well as your gains. Leverage in trading is thus a two-edged sword that must be used with prudence.
Because of National Futures Association (NFA) rules that TD Ameritrade follows, the TD Ameritrade forex leverage for major currency pairs is 50:1, while the maximum leverage ratio for minor and exotic currency pairs is only 20:1. This means that the margin requirements for major and minor currency pairs are 2% and 5%, respectively.
Keep in mind that if your positions go against you and you cannot meet the margin requirements of your open positions, then a broker can liquidate those positions until your account returns to an adequate capital situation.
TD Ameritrade’s liquidation policy for forex trades is once daily for any account with a level of risk less than 100% when observed at 4 a.m. EST and intraday if the account falls to 25% or below, whichever comes first.
Does TD Ameritrade Have International Trading?
If you are domiciled in Canada, then TD Ameritrade accepts Canadian forex trading clients through its TD Direct subsidiary. TD Ameritrade may not be available to those who are based elsewhere in the world, so to find out if you qualify to open an account, go to the broker’s account opening page. When you reach the country field, you will be notified by the website whether or not you can open an account with the broker.
Other Top Options for Forex Brokers
If you live outside of the U.S. or Canada, you may not be eligible to open an account with TD Ameritrade. Benzinga has compiled several of the best forex brokers other than TD Ameritrade that might be available in your jurisdiction.
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get started
securely through FOREX.com’s
website
FOREX.com is a one-stop shop for forex traders. With a massive range of tradable currencies, low account minimums and an impressive trading platform, FOREX.com is an excellent choice for brokers searching for a home base for their currency trading. New traders and seasoned veterans alike will love FOREX.com’s extensive education and research center that provides free, informative forex trading courses at multiple skill levels. While FOREX.com is impressive, remember that it isn’t a standard broker.
Best For
- MetaTrader 4 users
- Beginner forex traders
- Active forex traders
- Impressive, easy-to-navigate platform
- Wide range of education and research tools
- Access to over 80 currencies to buy and sell
- Leverage available up to 50:1
- Cannot buy and sell other securities (like stocks and bonds)
get started
securely through CedarFX’s
website
Billing itself as the world’s 1st eco-friendly broker, CedarFX makes it easy to trade and give back to the planet. You can choose a 0% Commission Account or an Eco Account — or open multiple accounts to meet all your needs.
CedarFX offers access to a wide range of tradable securities, including stocks, futures, major and exotic forex pairs, cryptocurrencies and more. Though CedarFX could introduce a few additional educational resources, the broker remains a unique option for traders invested in giving back.
Best For
- Forex investors
- Investors interested in 0% commission or eco conscious trading
- Investors looking for 24/7 customer service
- Allows users to offset their carbon footprint
- 0% commission investing
- Offers demo account access
- 24/7 customer service available through live chat
- Eco Account Option (10 trees planted for each lot traded)
- Fast deposits/withdrawls with Bitcoin
- Limited number of educational resources for new investors
get started
securely through IG Markets’s
website
IG is a comprehensive forex broker that offers full access to the currency market and support for over 80 currency pairs. The broker only offers forex trading to its U.S.-based customers, the brokerage does it spectacularly well. Novice traders will love IG’s intuitive mobile and desktop platforms, while advanced traders will revel in the platform’s selection of indicators and charting tools. Though IG could work on its customer service and fees, the broker is an asset to new forex traders and those who prefer a more streamlined interface.
Best For
- New forex traders who are still learning the ropes
- Traders who prefer a simple, clean interface
- Forex traders who trade primarily on a tablet
- Easy-to-navigate platform is easy for beginners to master
- Mobile and tablet platforms offer full functionality of the desktop version
- Margin rates are easy to understand and affordable
- Access to over 80 currency pairs
- U.S. traders can currently only trade forex
- Customer service options are lacking
- No 2-factor authentication on mobile
Get started
securely through AvaTrade’s
website
A fully regulated broker with a presence in Europe, South Africa, the Middle East, British Virgin Islands, Australia and Japan, Avatrade deals with mainly forex and CFDs on stocks, commodities, indexes, forex, cryptocurrencies, etc. This brokerage is headquartered in Dublin, Ireland and began offering its services in 2006. It offers multiple trading platforms and earns mainly through spreads.
Best For
- Beginners
- Advanced traders
- Traders looking for a well-diversified portfolio
- Controlled by regulatory agencies of multiple countries
- Choice offered in terms of trading platforms
- Support available in 14 languages and trading platforms in 20 languages
- Practice/demo account available for trying out
- Breadth of trading assets
- Does not accept customers from the U.S. as it isn’t regulated in the U.S.
- Transferring funds to the account may take up to five days; withdrawals could take up to 10 days
Get started
securely through Pepperstone’s
website
Pepperstone is an Australian broker focused on providing international forex, CFD and cryptocurrency trading. Though U.S. traders currently cannot open an account with Pepperstone, the broker remains an affordable and comprehensive option for international traders.
Pepperstone offers traders access to over 61 forex markets, over 60 CFDs for index funds and stocks and 5 cryptocurrencies. Leverage options with Pepperstone are extensive; you may qualify for up to 500:1 leverage when trading currencies and up to 5:1 leverage when trading cryptocurrencies, for example.
There are a few areas where Pepperstone can afford to improve. We’d love to see Pepperstone add its own trading platform in the future instead of relying entirely on 3rd-party platforms. We’d also love to see direct stock and fund purchase options in the future. Despite these flaws, Pepperstone remains a very strong choice for international traders.
Best For
- International traders interested in trading CFDs from foreign markets and currencies
- Traders who are already familiar with the MetaTrader or cTrader platforms
- Traders who are looking for leverage when trading cryptocurrencies
- Access to over 61 forex pairs and over 60 stock CFDs
- Leverage available for both forex and cryptocurrency trading
- Wide range of educational tools and courses that both beginners and experts can use
- 24/7 customer service
- Not currently available to U.S. traders
- No option to purchase stocks, bonds or mutual funds directly; only CFDs are available
Get started
securely through HYCM’s
website
HYCM is 1 of the world’s leading forex brokers, offering investors access to over 69 unique currency pairs. However, forex isn’t the only thing the broker offers — HYCM also offers high rates of leverage, stock and ETF trading, commodity investing and much more. Getting started with HYCM is quick and easy, and most investors can open an account in as little as 10 minutes.
HYCM offers a varying fee structure, which allows investors to choose the spread option that’s best for them. A wide range of educational and investing tools are available, which can be equally beneficial to both experienced and novice traders. Though HYCM isn’t currently available in the United States, it can be a great choice for residents of the other 140 countries where it offers service.
Best For
- Investors who want a customizable fee schedule
- Traders comfortable using the MetaTrader platform
- Islamic traders who need swap-free accounts that don’t build interest
- Wide range of currency pairs available
- Excellent selection of educational tools
- $0 deposit and withdrawal fees
- Not currently available to traders based in the U.S.
get started
securely through SimpleFX’s
website
SimpleFX is a cutting-edge online trading app, allowing you to invest fiat money or cryptocurrency in forex, crypto, indices, precious metals and commodities. With the WebTrader, you can learn to invest online and unlock advanced features designed for your success.
Best For
- Traders who need lots of options
- Customers who wish to invest with leverage
- Multicurrency traders
- Cryptocurrency owners who would like to invest with them
- Traders who prefer to skip the KYC and sign up just with an email address
- Experienced traders who would like to use MT4
- Simple to manage
- 60 currency pairs
- Spreads as low as 0.1
- Trading never closes
- Stock trading
- No minimum deposit
- No KYC for cryptocurrency accounts
- On the market since 2014
- Almost too many options for new investors
- Not yet available to U.S. users
get started
securely through eToro’s
website
Though Australian and British traders might know eToro for its easy stock and mobile trading, the broker is now expanding into the United States with cryptocurrency trading. U.S. traders can begin buying and selling both major cryptocurrencies (like Bitcoin and Ethereum) as well as smaller names (like Tron Coin and Stellar Lumens).
eToro offers traders the opportunity to invest their assets into premade portfolios or cryptocurrencies, similar to services offered by robo-advisors through traditional brokers. Though eToro isn’t a one-stop-shop for everything an investor needs, its easy-to-use platform and low spreads is a great way to enter the cryptocurrency market.
Best For
- International Forex/CFD Traders
- New cryptocurrency traders looking for an easy-to-use platform
- Traders who want to buy and sell cryptocurrencies on-the-go
- Simple platform that is easy to master
- CopyTrader feature that allows new traders to copy the same strategies used by professionals
- Virtual dummy account that gives you $100,000 to practice trades
- U.S. traders currently limited to cryptocurrencies
- Only 15 major coins available to trade
Frequently Asked Questions
Which forex broker is best?
Any forex broker worth their salt should have a good reputation and be duly regulated by a major regulator. The best broker for you would be the one that will accept clients in your locale and can best help you implement your forex trading strategy.
Answer Link
Who is the biggest forex broker in the world?
Although the broker deserving that title can vary based on which parameter you use to determine their size, Australia-based IC Markets is one of the biggest retail forex brokers in the world in terms of transaction volume. The broker recorded a monthly trading volume of over $1 trillion in November 2021.
Answer Link
Can I trade forex without a broker?
High-net-worth individuals can use credit lines with financial institutions to trade forex without a broker. You can also trade currency futures without a broker if you hold a seat on the CME exchange. As a smaller trader, you can take on forex risk by buying foreign assets, using an online payment service to get foreign currency or exchanging domestic money for foreign currency at an exchange kiosk or your local bank. Still, the easiest way by far to trade forex is via an online forex broker.
Answer Link
The post TD Ameritrade Forex Trading by Jay and Julie Hawk appeared first on Benzinga. Visit Benzinga to get more great content like this.
