Tuesday, May 02, 2006 

Closed My TD Amertirade Account

Received a letter from TD Ameritrade about new fee structure for my account. I had this account for a while, actually opened with Datek which was acquired by Ameritrade. Once in a while I did some Stock/ETF purchases in this account. They have made some improvements, like:
  • Lowered the commission, now it is $9.99 for all stock and options trades.
  • Removed the requirement for minimum balance to avoid maintenance fees.
  • And now you have access to local branches.
On the downside:
  • I was hoping they will lower the fees to same level as Scottrade, Firstrade and a couple of other discount brokerages, considering some like Tradeking are offering it even cheaper.
  • They increased the transaction fee to buy mutual funds. Well they have more than 1300 no transaction fee funds, but if you want to buy funds from Vangaurd, Fidelity or Dodge and Cox through them it will cost you $49.99, which is kind of steep.
Since they have a cheaper option called Izone ( used to be freetrade.com), I decided to open an account with them and do an internal transfer of my all Ameritrade account holdings to Izone. It didn't cost anything to do an internal transfer and I think Izone should be fine for now, till I figure out a better option.