TD Ameritrade is a US-based broker headquartered in Omaha that targets novice and professional investors. It offers commission-free stock and ETF transactions, zero account minimums, free research, options, futures, free research, and mutual funds without transaction fees.
This article will delve into whether TD Ameritrade is available in Australia, what its expansion plans are, and what are the leading alternatives. Let’s get to it.
Is TD Ameritrade available in Australia?
The online broker remains unavailable in several major economies, such as Australia, Canada, Germany, and Japan. It operates primarily for US-based users, but it accepts residents from only a handful of other countries:
- Hong Kong
Following Charles Schwab’s acquisition of TD Ameritrade in 2019, the latter still functions under its own banner. However, it still follows Schwab’s global strategy.
Since Schwab left the Australian market twice in the last 22 years and is known to be focusing on the US market, we expect limited international expansion plans. TD Ameritrade in Australia is highly unlikely in the near future.
But if you still want to open a TD Ameritrade account, a common question we receive is: would a VPN help?
Can you use a VPN to open a TD Ameritrade account from Australia?
No, a VPN can only offer access to TD Ameritrade’s platform and not in any way facilitate an account opening since the broker requests a valid ID.
Proving US residency remains an essential requirement. No VPN is able to sidestep this requirement–only shift your IP address.
TD Ameritrade alternatives for Australian investors
We found four incredible alternatives for Australian investors:
- Interactive Brokers. Founded in 1978, IBKR continues to lead as the globe’s unofficial broker. IBKR offers minimal trading commissions ($5 or 0.08% to start) for US-listed or ASX-listed stocks and ETFs, over 17,000 transaction fee-less mutual funds, and exceptional research. However, they require a $2,000 minimum deposit with at least $20,000 in liquid net worth.
- eToro. While also providing commission-free trading for US-listed stocks and ETF, this broker leads the charge for “social investing,” or the option to automatically copy the trades of other investors. They provide access to the world’s major cryptos for a 1% commission. All for a minimum investment of A$10.
- Capital.com. This relatively new online broker from the UK uniquely specializes in only CFDs, or “Contracts for Differences,” and requires a basic minimum investment of A$20. CFDs provide exposure to profits or losses without conferring asset ownership. However, over 80% of traders lose money using CFDs with this broker.
- Stake. Headquartered in Sydney, Stake provides access to both US and Australian stocks and ETFs while charging A$3 for the ASX and $0 for US-listed. Their minimum deposit is A$50, despite offering streamlined US tax compliance for Aussie investors.
Charles Schwab exiting the Australian market (twice) suggests that we cannot expect the brands Schwab nor TD Ameritrade anytime soon in Australia. In short, there is unlikely to be a TD Ameritrade Australia anytime soon.
But the continent is clearly moving forward anyway, with tech-savvy discount broker Stake or the globe’s unofficial broker IBKR. Trading in Australia has never been easier.
Did we answer all your questions? If not, please let us know in the comments section below!
Is there a TD Ameritrade Australia?
Unfortunately, TD Ameritrade is not operating in Australia and has provided no indications that it may soon.
Why is TD Ameritrade not in Australia?
Following Charles Schwab’s acquisition of TD Ameritrade in 2019, the latter brand must follow Schwab’s corporate strategy. Schwab exited the Australian market in the same year and has not yet indicated it may return.
Can I open my account with Australian dollars?
Yes, the four alternative brokers we provided above accept AUD.