How to Buy Crypto on TD Ameritrade

Written By

Ankita Lodh

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Trading cryptocurrencies is a popular and exciting way to invest in the digital economy. But if you are a US citizen who uses TD Ameritrade, one of the largest online brokers in the country, you might be wondering how to buy crypto with this platform.

The answer is not so simple, as TD Ameritrade does not currently offer direct crypto trading on its platform. However, you can still get exposure to crypto assets through some indirect methods, or you can choose an alternative platform that allows you to buy and sell crypto directly. In this article, we will show you how to buy crypto with TD Ameritrade or with a TD Ameritrade alternative and what the future might hold for crypto trading on this platform.

Can I Buy Crypto with TD Ameritrade?

No, you cannot buy crypto with TD Ameritrade directly. TD Ameritrade is an online broker that offers a variety of investment products, such as stocks, bonds, options, futures, ETFs, and mutual funds. However, it does not currently support direct trading of cryptocurrencies on its platform.

This means that you cannot buy, sell, or store cryptocurrencies like Bitcoin, Ethereum, or Litecoin with your TD Ameritrade account. You also cannot transfer cryptocurrencies from or to your TD Ameritrade account. If you want to trade cryptocurrencies directly, you will need to use a different platform that supports cryptocurrency trading and is regulated by the Financial Crimes Enforcement Network (FinCEN). 

However, this does not mean that you have no options to get exposure to the crypto market with TD Ameritrade. There are some indirect ways to invest in cryptocurrencies through TD Ameritrade, such as:

Crypto Stocks: These are stocks of companies that are involved in the cryptocurrency industry, such as mining, exchange, payment, or blockchain services. 

OTC Trusts: These are products that trade over the counter and hold large pools of a specific cryptocurrency. 

Crypto ETFs: These are exchange-traded funds (ETFs) that track the performance of a basket of cryptocurrencies or crypto-related companies. 

Crypto Futures: These are contracts that allow you to speculate on the future price of a cryptocurrency.

As you can see, there are some ways to get exposure to crypto assets through TD Ameritrade, but they are not the same as buying crypto directly. 

How to Crypto with a TD Ameritrade Alternative

If you are not satisfied with the indirect ways to invest in cryptocurrencies through TD Ameritrade, you might want to consider using a TD Ameritrade alternative that allows you to buy and sell crypto directly. This way, you can have more control over your crypto portfolio, access a wider range of crypto assets, and enjoy lower fees and better liquidity.

There are many online platforms that offer direct crypto trading for US citizens, but you should be careful when choosing one. You should look for a platform that is licensed and regulated by the relevant authorities, such as FINRA and FinCEN, and that has a good reputation for customer service. You should also compare the features, fees, and security of different platforms before making a decision. 

To start trading crypto with a TD Ameritrade alternative, you need to follow these simple steps: 

1. Choose the platform that meets your needs and expectations, and sign up for an account.

2. Use your preferred payment method to add money to your account. You will need to check the minimum deposit amount and the deposit fees for each platform.

3. Start trading crypto by selecting the crypto asset you want to buy or sell. You will need to check the price, the spread, the leverage, the stop loss, and the take-profit levels for each trade.

4. Monitor your portfolio’s performance and withdraw your funds when you are ready. You will need to check the withdrawal fees and limits for each platform.

For example, eToro is one of the best TD Ameritrade alternatives for crypto trading. To start trading crypto with eToro as a TD Ameritrade alternative, you need to

1. Head over to eToro’s website and complete the sign-up and verification processes.

2. Find the ‘Deposit Funds’ button at the bottom left of your screen and choose the amount and method of your deposit.

3. Once your funds are credited to your account, you can start trading crypto by clicking on the ‘Trade Markets’ tab and selecting ‘Crypto’.

4. Choose the crypto asset you want to trade and click on ‘Buy’ or ‘Sell’. You can also set your preferred leverage, stop-loss, and take-profit levels.

5. Confirm your trade and monitor your portfolio performance on the ‘Portfolio’ tab.

    Will TD Ameritrade Offer Crypto Trading?

    TD Ameritrade has decided not to offer cryptocurrency trading to its customers. This choice is supported by two primary factors. First, they do not have the necessary infrastructure to handle cryptocurrency wallets. Second, they face many regulatory challenges in providing this asset class to their clientele. 

    What is TD Ameritrade?

    TD Ameritrade is one of the largest and most popular online brokers in the US. It offers a wide range of investment products and services, such as stocks, options, futures, ETFs, mutual funds, bonds, CDs, forex, IRAs, and more. It also provides innovative tools and platforms for online trading. TD Ameritrade is regulated by the SEC, FINRA, CFTC, NFA, and other state and federal agencies.

    TD Ameritrade was founded in 1975 as a discount brokerage firm that pioneered low-cost commissions and online trading. It changed its name to Ameritrade in 1997 and merged with TD Waterhouse USA in 2006 to become TD Ameritrade. 

    Bottom Line

    Buying crypto with TD Ameritrade is not possible at the moment, as the online broker does not offer direct crypto trading on its platform. You can still use a TD Ameritrade alternative to trade cryptocurrencies. 

    It is true that TD Ameritrade may offer direct crypto trading in the future, as it has invested in and tested ErisX, a regulated cryptocurrency exchange. However, there are still some challenges and uncertainties that may delay or prevent this from happening. Until then, TD Ameritrade’s clients can still get exposure to the crypto market through indirect methods or alternative platforms.

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