![How to Buy Crypto with TD Ameritrade [2023] | Step-by-Step Guide](https://finbold.com/app/uploads/2023/01/TD-Ameritrade-1024x683.jpg)
Summary: While TD Ameritrade does provide indirect exposure to cryptocurrencies through OTC trusts, mutual funds and ETFs, as well as Bitcoin futures, it doesn’t offer customers direct access to individual cryptocurrencies. Instead, TD Ameritrade customers can connect their banking accounts to a Financial Industry Regulatory Authority (FINRA) licensed cryptocurrency broker to buy digital assets like Bitcoin (BTC) and Ethereum (ETH).
In short, to buy crypto TD Ameritrade, investors in the US will need to sign up with a FINRA-regulated crypto exchange like eToro and deposit USD from their current bank account.
Can you buy crypto on TD Ameritrade?
Unfortunately, you can’t buy or trade crypto 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?
An alternative broker to TD Ameritrade that offers cryptocurrencies in the US is eToro, a FINRA-licensed and widely trusted multi-asset investing platform. With over 70 cryptocurrencies, from major digital currencies Bitcoin (BTC), and Ethereum (ETH), to Dogecoin (DOGE) and other crypto coins, the platform also offers unique features such as “Copy Trading,” which enables users to copy top-performing crypto traders, in addition to a staking service, custom watchlist, as well as advanced charts and technical analysis tools.
How to buy crypto with TD Ameritrade: Step-by-Step
You can get started 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’s 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’s crypto investors wanting to purchase digital assets can do so by going through FINRA-regulated crypto brokers, such as eToro.
How to buy crypto safely
Cryptocurrencies are still a relatively untested financial tool and are particularly susceptible to volatility. In addition, the crypto market is rife with scams, frauds, and scandals, further demonstrating that the space should be entered with caution.
Furthermore, although cryptocurrency broker-dealers in the US are required to register with FINRA, which imposes several requirements on them, including implementing and maintaining both anti-money laundering (AML) and customer identification programs (CIPs), crypto assets themselves are not regulated.
Fortunately, there are steps you can take to ensure you’re being careful when buying crypto. Let’s look at a few tips on what you should do when getting started with digital assets and how to best protect yourself and your money:
- Research the cryptocurrency you want to buy: Make sure you understand how it works and what the risks are;
- Only use a safe device: Avoid public computers and Wi-Fi networks. Always use your personal computer with a VPN, which helps establish a secure connection between you and the web, keeping your sensitive information safe;
- Choose a reputable exchange: Ensure the exchange is licensed by the appropriate regulators in your country and has a solid track record. Study the exchange’s user terms and agreements carefully to learn more about where your money is kept and what happens to your funds if the business goes bankrupt. You may also want to scour through user reviews to catch any red flags;
- Secure your account: Use two-factor authentication and a strong password to protect your account;
- Use a secure wallet: Store your cryptocurrency in a secure wallet to protect it from hackers. You can opt for either a hot (online) or cold (offline) wallet. To choose the right one for you, make sure to check out our in-depth guide on crypto wallets;
- Don’t invest money you can’t afford to lose: Because the crypto market can be so volatile, you need to be conservative with your investments, particularly when starting out. For more investing tips, have a look at our guide on investing mistakes to avoid;
- 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.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy crypto with TD Ameritrade:
Does TD Ameritrade have crypto?
TD Ameritrade does offer its customers indirect exposure to cryptocurrencies via Bitcoin futures contracts; however, they can’t buy or trade crypto on TD Ameritrade directly. TD Ameritrade clients must first connect to a regulated exchange to purchase individual cryptocurrencies.
How to buy crypto on TD Ameritrade?
Customers at TD Ameritrade can only get indirect exposure to cryptocurrencies through various products, such as Bitcoin futures. You must use a third-party crypto exchange or investing platform to buy individual cryptocurrencies.
Can you buy crypto on TD Ameritrade?
Although TD Ameritrade provides indirect exposure to cryptocurrencies through OTC trusts, mutual funds and ETFs, as well as Bitcoin futures, it doesn’t offer customers the opportunity to buy individual cryptocurrencies.
Can you trade crypto on TD Ameritrade?
Unfortunately, you can’t trade crypto on TD Ameritrade. The stockbroker offers exposure to crypto and digital assets via Bitcoin futures contracts but doesn’t offer individual cryptocurrencies or crypto trading.
What is TD Ameritrade’s crypto policy?
While TD Ameritrade is a crypto-friendly platform offering indirect exposure to digital assets through products such as Bitcoin futures, it does not provide customers direct access to cryptocurrencies. Instead, investors wanting to buy, sell, and trade crypto will have to do so through FINRA-regulated exchanges that offer cryptocurrencies.
