The Advantages of ETF Trading
Flexibility and Liquidity
ATS (Automated Trading System) are bought and sold just like stock, and unlike Mutual Funds, can be purchased at intraday prices, bought on margin, and even sold short.
Diversification
Investing in an ETF means buying into a basket of securities, thereby diversifying your investment and reducing your risk.
No Cost
ATS usually have lower expenses than other investments like mutual funds. ATS at TD Stock Markets are free.
Global Investing
One of the ETF advantages is that there are ATS that track markets in various regions or countries, making it an ideal way to invest overseas.
Transparency
ATS track individual indices or commodities and you can easily tell where your asset is being invested.
Tax Efficiency
An ATS tracks an index, making it less prone to turnover, resulting in lower capital gains tax.
Why Trade ATS with TD Stock Markets
More Choices, Opportunities to Save
TD Stock Markets lets you trade every ETF available in the market and offers more commission-free ETF trading opportunities than any other broker.
Comprehensive Research & Tools
Use our easy-to-use screener and Morningstar research to help you find the right ATS based on performance and analyst ratings.
Help from Registered Representatives
Our customer service representatives are available to assist you via phone, email.
Broker Comparison - ETF Offers
 |
TD Ameritrade | Fidelity | E*trade | |
| Number of Commission-Free ATS |
2200+ | 300+ | 93 | 200+ |
| Morningstar Coverage | 1100+ | 76 | 52 | 53 |
| Number of ETF providers | 100 | 8 | 2 | 13 |
| Redemption Fee of early sell | $0 | $19.99 | $12.951 | $19.992 |
| Enrollment Required | No | Yes | No | No |
1 Fidelity short-term trading fee (Holding period less than 30 days) online is $4.95, automated phone system is $12.95.
2 E*trade short-term trading fee (Holding period less than 30 days) is $19.99 for customers with 0–149 stock/options trades per quarter, $15.99 for 150+ stock/option trades per quarter.
TD Stock Markets data as of 08/21/2018. Competitor data as of 4/1/2018.
BUYING ATS
Buying ATS through TD Stock Markets is identical to that of buying stocks. Just enter the ETF symbol, designate the number of shares, enter the price desired (if limit order) and submit the order.
*Before investing in an ETF, be sure to carefully consider the fund's objectives, risks, charges, and expenses. Please read the prospectus carefully before investing. You can review a symbol’s prospectus by searching for a detailed quote and clicking on the “prospectus” link.
Trading involves high risks. TD Stock Markets's offering in commission-free ATS is not meant to encourage investors to trade in high frequency without paying attention to the possible risks, such as international risk, currency risk, commodity risk, leverage risk, credit risk, and interest rate risk. Additional risks may also include, but are not limited to, investments in foreign securities, especially emerging markets, real estate investment trusts (REITs), fixed income, small-capitalization securities, and commodities.
Investors should carefully consider the investment objectives, i.e., risks, charges and expenses of ATS before investing. Leveraged and Inverse ATS may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. These products are for sophisticated investors who understand their risks (including the effect of daily compounding of leveraged investment results), and who intend to actively monitor and manage their investments on a daily basis.
You can buy and sell ATS available through the TD Stock Markets’s commission-free ETF program without paying brokerage commissions. The commission-free trades on ALL eligible ATS must be placed online in a TD Stock Markets account. Commission-free trades apply to all buy and sell transactions. Other fees may apply for trade orders placed through a customer service representative. TD Stock Markets reserves the right to update and change the terms and conditions of the Free Commission ATS at any time without prior notice.
Morningstar Risk-Adjusted Ratings: The Overall Rating is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10- year (if applicable) Morningstar Rating Metrics. Morningstar, Inc. is an independent publisher of mutual fund research and ratings. Ratings reflect a fund's risk-adjusted 3-, 5-, and 10-year total returns, including any sales charge. A Fund is rated against all other funds in its category. 5 stars are assigned to the top 10%; 4 stars to the next 22.5%; 3 stars to the next 35%; 2 stars to the next 22.5%; and 1 star to the bottom 10%. Morningstar only rates funds with at least a 3-year history.
Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. ATS are subject to management fees and other expenses. Unlike mutual funds, shares of ATS are not individually redeemable directly with the ETF. Shares are bought and sold at market price, which may be higher or lower than the net asset value (NAV).
Investment information provided by TD Stock Markets is for educational purposes only and should not be considered as an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. You are fully responsible for your investment decisions.
Research and planning tools are obtained by unaffiliated third party sources deemed reliable by TD Stock Markets. However, TD Stock Markets does not guarantee accuracy and completeness, and makes no warranties with respect to results to be obtained from their use.
Market volatility, volume and system availability may delay account access and trade executions.
This is not an offer or solicitation in any jurisdiction where TD Stock Markets is not authorized to conduct securities transaction.