A Little Disappointed with TD Ameritrade

by David@MoneyNing.com · 15 comments

td ameritrade is disappointing

My wife’s investment assets are about to be switched over to another brokerage firm. She’s always had an account at TD Ameritrade and when she changed jobs, we felt it was the natural choice to open a traditional IRA account there.

When she called to checkup on the status of the transfer a week after the check from her former company was supposed to arrive at the brokerage firm, she was greeted by what I can only assume is a salesperson. From what my wife told me, the conversation after they told her the money hasn’t arrived yet went something like this.

Brokerage: We can help you with investment options and make sure that you have a well thought out plan to tackle your future.
Emma: Oh I’d like that, how do we get started?
Brokerage: Oh we… actually, how much money is being transferred into the 401k?
Emma: Oh about $8000 since I didn’t work there for that long
Brokerage: oh………… for that amount of money, you might as well not invest. Good bye.

Yes, he actually hung up. I’ve been resisting about posting anything bad about brokerages, even when someone emailed me and told me that they lost $50,000 in one day just because they couldn’t log into TD Ameritrade’s website to cover their short position recently. I felt that it was hard for the brokerage to give any money back for that person because it was impossible for the company to know which claims are true and which are false. However, there is absolutely no excuse for that person to hang up like that. $8,000 is more than enough money to be invested in the stock market. There is absolutely no reason for that person to discourage Emma in that way. Even if it was $800, everyone should be encouraged to save and invest as long as it’s for the long term.

I will be looking for another place to move all her assets. They have lost our business.

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{ read the comments below or add one }

  • Katie says:

    As someone else suggested, “Scottrade” was very service oriented and reasonably priced at $7 per trade. But you can also go the use “Sogotrade” as a discount on-line brokerage firm. I’ve been with them about 2.5 years now without any problems and with two separate accounts (one for myself, one managing an account for a minor). At $3.00 per trade each way, it’s really a great way to handle smaller accounts and gives you a lot of flexibility to decide what you need and how to invest. (FYI – I don’t work for them nor am I affiliated with them in any way other than a consumer of their product. I just think it’s important to promote good companies that do what you want them to do!).

  • Lisa says:

    Does anybody have a recent dealings with TD Ameritrade? My husband just transferred his 401K to them

    • Kara says:

      If you are concerned about who you are dealing with at TD Ameritrade, you can request a disclosure from your consultant. This is a 4 page compliance approved breakdown specifically about that representative. They won’t offer this to you, but they are required to furnish it, if they are counseling you about your accounts. In it is their education, work experience, and any violations or complaints against them. It is similar to what wealth managers and portfolio funds send to clients. It is called an ADV 2B. If they don’t call you back, they’re hiding something. hehehehe

  • Steve says:

    Yes at TD Ameritrade they have sells consultants. I worked there for 2 years and was recently laid off. For there phone associates they have what are called B.L.R.s. The goal is to find outside money that clients have outside of TD Ameritrade. You will have an associate on the phone when you call ask you if you would like advice or to speak with an Investment Consultant or like to receive guidance and what not. Sounds good right? Well, the associates can not submit the lead unless the client has atleast $25,000 in outside assets. So if you talk to them and want those services but do not have $25,000 then you will not get any of it because the associate can not submit the lead and if they do and its under thr $25,000 the associate will get in trouble. Seriously no lie… If the client has $25,000 and agrees to the phone call the associate gets paid $7.50 and if the client brings over the outside money this is considered a conversion for the associate and receives an additional $60. They do not get paid this until the end of the quarter. But if you do not have $25,000 you are worthless to them and thats why they stop telling you all the great things TD Ameritrade can do and has to offer because the associate wont get paid if its under $25,000. If a client brings over $25,000 or $100 Million the associate still only get the $7.50 plus the $60 if it converts. Its a very fluad system and they make it part of the associates bonuses. So if you do not have more than $25,000 at TD Ameritrade or outside of TD Ameritrade you are considered worthless. You mean nothing. Seriously. They preach it there. Yes TD Ameritrade sucks. They do not care about you if you are a small timer. They eat you up.

  • Jon Kepler says:

    100 free trades, huh? I’ll keep that in mind if I ever find the site down.

  • ANONYMOUS says:

    “I used to work for these bastards and can tell you that they are DESIGNED for ‘PISS-POOR service. “If they are down, do not call the toll-free number…call the local Ft. Worth, Texas phones and ask for at least 100 free trades. Don’t bother with a stockbroker who can only give you 5 free trades…ask for a MANAGER..”Here…I will HELP YOU OUT…ask for ‘Jason Cargill, Josh Monaco, Paul Thurston, Brian ‘BULLFROG’ Daniel, David Hendershott, Yo-Hann Onnen, John Ehlers, Tina McMillan or Thuy Van Quah.” “Former employment CUTS BOTH WAYS, YOU G-DDAMNED MORONS.”

  • Jon Kepler says:

    I think it’s crazy that you’d consider leaving over how one employee treated you. Why not look at the company culture as a whole? Have you ever typed “Joe Moglia” into a search engine before? TD Ameritrade is one of the best, if not THE best.

    Also, as for that guy losing $50k, there must be more to the story. If he couldn’t log in, why wouldn’t he just complete the transaction over the phone?

    • Jay Pastorius says:

      same thing happened to me yesterday 13k loss….. I tried to log in .. it wouldnt work .. i called 3 times… 1st time 60 min wait…. 2nd time 43 min wait … 3rd time 1:15min …. its criminal not sure what i can do .. they told me to go somewhere else… i have over 100k in that account… such bullshit … 2nd time it happened….

  • Jane says:

    That’s really surprising. At this time, you’d think they’d be happy to get people investing with their firm – no matter the dollar amount.

  • No Debt Plan says:

    That makes me “laugh out loud” … I bet the rep gets paid a commission of assets and it was worth more of his time to go find someone else, or something ridiculous like that.

  • Paul says:

    Even though I am from Singapore, I still think this is way too atrocious. If i ever move to US, you betcha they would have one customer less.

    I mean, i think they have lost a lot more than you as a customer too.


  • MoneyNing says:

    Simon: He is definitely responsible but I’m not really in the mood to spend anymore time on this company.

    Good luck to that person and the brokerage firm in the future.

  • Simon Z says:

    Wow, $8000 is too little??

    Scottrade, another brokerage, called me 5 times over the course of 3 days for my account opening with $500.

    It is true that the amount one chooses to invest is irrelevant to their ability to invest.

    The TD Ameritrade rep should be fired for his actions. Get his name through the company phone record and report his a$$. He’s responsible for lost business.

    • Kara says:

      You’re absolutely right. Infact, 8k may very well be more than that salesperson has in his IRA. However, he can’t keep his job talking to people with low assets. He wouldn’t even get paid on that. They don’t get paid on how many trades you make or how many accounts you open. They don’t get credit on anything less than 25k. Depending on the branch, 25k is not even given a second phone call. Scottrade has a different commission structure and they apparently have the luxury to talk to smaller accounts and not get fired for not making production. Hopefully, you aren’t disheartened from investing. Please know that every one of them has an agenda, but the company’s compensation will dictate how you are treated.

      • Buster says:

        Yes,… And should a person experience an extreme cash flow…remember these losers. Customer service..always. I cannot believe your statement. If you want to be a failure your advice is great. The greatest companies respect “all” their customers. enjoy poverty.

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