TD Direct Investing Review 2024: Features & Alternatives
Reviewed by Randolph Vialva, MBA
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TD Direct investing is a popular Canadian online brokerage platform for self-directed investors. They are a part of the Toronto-Dominion Bank Group (TD Bank Group). TD Direct Investing was the first bank-owned self-directed brokerage in Canada. Today, they have a staff of over 85,000 people, spread across companies worldwide, helping approximately 22 million users.
Pros
- More convenient for users who bank with TD
- Modern and straightforward
- Variety of options to select
Cons
- Higher trading fees
- Exorbitant account fees except active users
- Multiple investment accounts and securities
- Online brokerage with comprehensive investment education resources
- Trading mutual funds, equities, ETFs, and options.
- Carrying out sophisticated multi-leg option strategies.
- Viewing holdings, balances, orders, and activity in real-time.
- Tracking changes in stock and ETF trades, and mutual fund prices.
Using TD Direct investing platform, DIY investors can trade stocks, ETFs, mutual funds, and many other types of investment securities. This platform also offers accounts including stocks and shares ISA, TD SIPP, and Junior ISA, among others. Additionally, you can go there for currency exchanges if you want to travel to another country.
TD Direct investing is a popular Canadian online brokerage platform for self-directed investors. They are a part of the Toronto-Dominion Bank Group (TD Bank Group). Using TD Direct investing platform, DIY investors can trade stocks, ETFs, mutual funds, and many other types of investment securities. This platform also offers accounts including stocks and shares ISA, TD SIPP, and Junior ISA, among others. Additionally, you can go there for currency exchanges if you want to travel to another country.
When it was introduced in 1984, TD Direct Investing was the first bank-owned self-directed brokerage in Canada. Today, they have a staff of over 85,000 people, spread across companies worldwide, helping approximately 22 million users. TD Direct investing debuted Web Broker, a groundbreaking online platform, in 1996. The Active Trader and Thinkorswim trading platforms followed in 2006 and 2009, respectively. The TD investment app was released in 2011 and is accessible through Google Play and the App Store.
When opening a brokerage account, consider trading costs, commissions, and other factors. Additionally, you want to look at the investment options, account kinds, trading platform features, customer service, and other things. In this TD Direct Investing Review, we will take a look at the platform’s services, features, advantages, and how TD direct investing compares to other platforms.
TD Direct Investing Advantages
Feature-Packed Investing Platforms
TD Directing offers a variety of investing and trading platforms all with several features. Users can access their account using WebBroker (the standard), the TD mobile app, their advanced dashboard, and Thinkorswim for US traders who actively trade options.
Multiple Investment Accounts And Securities.
TD Direct Investing offers a wide range of registered and non-registered accounts for investors to choose from to meet their goals. The account includes the most popular accounts among traditional banks and online brokers. Some of them are cash accounts, margin accounts, Tax-Free Savings Account (TFSA), Registered Retirement Savings Plans (RRSP), Registered Education Savings Plan (RESP), Locked-In Retirement Accounts (LIRA), Registered Retirement Income Fund (RRIF), Life Income Funds (LIF), and Registered Disability Savings Plan (RDSP). These accounts can be used to trade investments like stocks, mutual funds, ETFs, GICs, options, and fixed-income investments. As an online investor, you can choose any of these options based on the risk level, growth potential, and the amount of control you want to have over your investments.
Free Investment Education Resources
There is a wide array of resources to learn about the software, including training videos, webinars, and other educational tools. Users who are just learning to trade can take advantage of these learning resources and contact customer service when they need support. In addition to educational resources, TD Direct Investing also makes available market research, automated alerts, a personalized homepage, charting tools, and performance reporting. Not only that, but TD also organizes live online “master class” workshops and a free webinar on getting started every week.
Easily Set Up Dividend Reinvestment Plans (Drip) And Pre-Authorized Purchase
The Dividend Reinvestment Plan allows qualified owners to apply dividends received on their shares toward the purchase of more shares at a discount. Each client’s portion of the cash dividends for particular assets in their account for which they have signed up for the DRIP program will automatically be reinvested by TD Direct Investing. Participating in this program has the following advantages:
- Dollar-cost averaging can increase returns over time.
- There is no fee or commission for purchasing additional shares of a corporation, lowering costs.
- Dividends that are reinvested grow over time.
- Enables regular engagement in a company’s expansion
- No trailer fees, sales taxes, or management costs
- Purchase less than a board lot without having to pay a larger commission fee
TD Direct Investing Investment Types
Self-directed Investors can choose from a variety of investments to trade and invest on the TD Direct Investing trading platform.
Exchange-Traded Funds (ETFs)
ETFs are baskets of stocks, bonds, or commodities that are traded on a stock exchange. ETFs generally track the performance of a benchmark index.
Options
Options are financial derivatives that derive value from underlying assets, indexes, or interest rates. Investors with an Options contract can sell the underlying entities at a specific price within a specific time frame.
Mutual Funds
These are stocks, bonds, and other securities that have built-in management fees and are managed professionally by a dedicated portfolio advisor.
Equities
Company-owned stocks or shares are known as equities. Buying a company’s stock enables you to become a part-owner in the company, hence, you can earn dividends and capital gains.
Term Deposits
Term deposits are deposit accounts held at a financial institution used to lock up money for a period of time. Investments in term deposits often have short-term maturities of one to several years and require various minimum amounts.
Related Topic: Top 6 Best Stock Trading App Canada
TD Direct Investing Packages
Trading Fees
| Standard Rate | Active Trader Pricing | |
| Canadian & U.S. Stocks | $9.99 | $7.00 |
| Canadian & U.S. Options | $9.99 + $1.25 per contract | $7.00 + $1.25 per contract |
Standard Rate
The standard TD direct investing stock commission is $9.99 for Canadian and US Stocks and ETF trades, while it is $9.99 + $1.25 per contract for Canadian and U.S. Options. However, note that these prices are quoted and the commission charges depend on the currency of each trade.
Active Trader Pricing
Active traders are users who engage in over 150 trades per quarter. The TD Direct Investing Stock Commissions for active traders is $7.00 flat for Canadian and US stocks and ETF trades, while the trading fees are $7.00 + $1.25 per contract for Canadian and U.S. Options. Like the standard rate, all prices are quoted and the commission charges depend on the currency of each trade.
Maintenance Fee
Users with a total account balance of less than $15,000 pay $25 as maintenance fees quarterly. In addition, other administrative fees you may have to pay while using a TD direct investing account include:
- $100 for full RRSP account withdrawals
- $25 for partial RRSP withdrawal
- $2 per mailed account statement
- $5 per duplicate statement
- $150 for partial or full account transfer
Household Program
TD Direct Investing offers a household program that qualifies you for a waived maintenance fee, lesser trading commissions, and free streaming-level market data. This household program requires no participation fee. Clients with a single trading account are instantly enrolled in this program. To qualify for waived maintenance fees with the household program, there are some conditions that must be met. Some of these include completing three or more trades in the preceding quarter, holding a Registered Disability Savings Plan, and having combined assets of over $15,000 all within your household.
Market Data
TD Direct Investing lets users make informed and confident investment decisions with the industry-leading market data and research center they offer. The Market Data and Research center includes a suite of tools like real-time data, analyst commentary, reports, and more.
TD Direct Investing Quick Overview
Best Overall Value
- Access to investing platforms with multiple features and advanced trading tools
- Multiple investment accounts and securities
- Online brokerage with comprehensive investment education resources
TD Direct Investing Customer Reviews
Here are people’s experiences with TD Direct Investing on Finimize.
I like that there are a lot of ways to see different metrics to provide analysis on my investments. I like that the first page clearly shows the gains and losses, and what money is sitting as cash to be invested. I find it very easy to move between my savings account and the TD Direct Investing platform, and very easy to transfer money between them as well. However, I would like to see what money I have received in dividends easier, as well as the total money invested for the year.
Jessica
Convenience and ease of using the td app, when customer service is reached they can be helpful.
Candace
They have a personal representative who is easy to talk to and always gets me great returns and advice, but I would like it to be totally fee-free.
Janet
Easy to buy stocks and view the price for different time periods. Comparing different stocks would be a more interesting feature of TD Direct Investing, as the ability to look at similar stocks in an industry.
Aaron
TD Direct Investing Service Review
Review of TD Direct Investing
| Overall Pricing and Value | 78%
| 78% |
| Cost Value | 60%
| 60% |
| Customer Support | 88%
| 88% |
| Ease of Use | 90%
| 90% |
| Included Features | 74%
| 74% |
In this TD Direct Investing Review
Is This Brand Right For You?
TD Direct Investing provides several dedicated investment plans and options for new and seasoned investors. Customers of TD bank who are looking to manage their own portfolios will find it to be an incredibly good fit. TD direct investing also has an easy-to-use platform for users to trade in a variety of investments. To make managing your portfolio even easier, it offers a combination of resources to learn how to use the software, research, and other educational tools.
Cost Value
Considering a discount broker’s cost value is very important for investors to keep costs down. With a $9.99 charge per transaction, TD Direct investing has a competitive transaction cost when compared to other bank-owned online brokers.
Customer Service
TD Direct Investing provides top-rated customer support through regular support channels. You can contact TD Direct Investing by calling its customer service line or visiting a branch to speak to an agent. You can get more information about your trading account and investment needs when you the investment representatives. Although TD Direct investing does not provide live chat customer support, they make it up with experts always available on phone to attend to customers in different languages.
Ease of Use
TD Direct Investing offers a variety of trading platforms, including the WebBroker online trading platform, the TD app, and ThinkOrSwim. Additionally, it also provides a more straightforward TD app that enables you to use TD Direct Investing from your smartphone and other compatible devices.
You can access TD Direct investing trading platforms from a variety of devices, depending on your personal preferences. These platforms are attractive, easy to navigate, and user-friendly. Whether you are using the platform on a laptop or a smartphone, the navigation is always intuitive and straightforward.
Included Features
TD Direct Investing customers can anticipate the following features:
- Trade mutual funds, equities, ETFs, and options.
- Carry out sophisticated multi-leg option strategies.
- View holdings, balances, orders, and activity in real-time.
- Track changes in stock, ETF, and mutual fund prices.
Overall
With cutting-edge tools, information, support, and inspiration, TD Direct Investing has provided self-directed investors across Canada with the tools they need to take charge of their financial future. Clients can trade and invest in a variety of financial instruments from various asset classes on their website and mobile application. They also offer various products, tools, and services to assist investors in achieving their unique financial objectives.
Since its establishment in 1984, TD Bank Group’s direct investing platform has served both amateur and professional online investors, making them one of Canada’s biggest online brokers with millions of customers. You can manage your own portfolio through self-directed investments, options, exchange-traded funds (ETFs), mutual funds, GICs, bonds, and IPOs, among others.
2 Top TD Direct Investing Alternatives
| CICB Investor’s Edge | Questrade | TD Direct Investing | |
| Award | Great for Beginners and Students | Best User Experience | Best for self-directed investor |
| Ranking | 4/5 | 4,5/5 | 3,9/5 |
| Detail | Read Review | Read Review | Read Review |
| Link |
CICB Investor’s Edge
CIBC Investor’s Edge provides an online trading platform for investors who prefer to manage their investments. They offer clear and transparent pricing, with a flat charge of $6.95 for each online equities trade, $5.95 for students, and $4.95 for active traders. Users can open different accounts, including RESP, TFSA, RRSP, RRIF, and non-registered accounts.
Questrade
Questrade is a Canadian broker that offers Canadians various alternatives to trading and investing with popular banks. Since it was established in 1999, Questrade has been providing trading options like stocks, options, bonds, ETFs, and mutual funds for investors. Additionally, Questrade provides Guaranteed investment certificates, IPO access, and international equities to users.
Conclusion
TD now provides practical online investing tools that everyday people (not just experienced traders) may use to manage their own money, much like all of the Big 5 Banks. Although TD’s Direct Investing has high trade costs, it provides engaging learning resources and chances to assist those who are new to investing in learning the ropes.
They also provide a wide range of free resources, including tools and studies, which are extremely valuable to anyone actively trying to maximize their investments. Unfortunately, there are also inactivity fees in addition to the large transaction fees, so regardless of what you do, you are likely to pay fees.
Frequently Asked Questions (FAQs)
Yes, TD direct investing is legitimate. The company uses state-of-the-art cyber security to protect your funds. In addition, the Canada Investor Protection Fund (CIPF) protects you against fraud for up to $1 Million per account. However, you should note that TD and CIPF only protect you from corporate issues, not poor investment performances.
The base cost for equities and ETF trading on TD Direct Investing is $9.99 per transaction. For active traders, this fee is reduced to $7.00 for each transaction. However, mutual funds and fixed-income products have no fees.
You can apply for an account online on the TD Direct Investing website or TD app if you are opening an individual margin, RSP, cash, or TFSA account. Note that some transactions cannot be completed online, such as beneficiary designations on RSP and TFSA, and successor holder designation on a TFSA. Also, other account types like joint and corporate margin and cash accounts and spousal RSPs require you to apply in person at a TD Canada Trust branch.
One of the biggest financial institutions in the world, TD Bank Group, is the parent company of TD Direct Investing. TD Direct Investing broker is an authorized financial institution offering authorized investment services. Over 300,000 people use the company, and their combined accounts are worth over £13 billion. Customers obviously have faith in TD Direct Investing to manage their finances. You don’t have to worry about the firm’s integrity because it is supported by the much larger TD Bank Group. In addition, TD Bank is a member of the Investment Industry Regulatory Organization of Canada ( IIROC ) and the Canadian Investor Protection Fund ( CIPF ).
Yes, new users may be eligible to be reimbursed for part of their transfer fees, up to $150 if they transfer $25,000+ from another brokerage. Note that this transfer fee reimbursement is available fondly up to four times for every new user.
A TD Direct Investing Retirement Savings Plan account is a tax-deferred savings tool for retirement planning. Tax-deferred savings account with TD Direct Investing is a tool for retirement planning. You have access to a broad selection of eligible investments, including stocks, options, bonds, and money market instruments. Any TD Direct Investing location or TD Canada Trust branch allows you to open a new account.
According to the TD Direct Investing Foreign Resident policy, you are not permitted to open a new personal TD Direct Investing account if you don’t live in Canada. Individuals who spend at least 183 days in Canada each calendar year and who are Canadian citizens or permanent residents with official documentation are considered residents of Canada. Opening a TD account is not allowed for foreign residents such as students or foreign employees.
Active traders with 150+ trades every quarter get to pay $7 per transaction (instead of $9.99). Additionally, TD Direct Investing will pay up to $150 in transfer fees for any account transfers of $25,000 or more.
