I like to keep an eye out for deals on new brokerage accounts, as sometimes brokerage firms will offer various rewards to tempt potential clients to move their business to them.
TD Ameritrade orients many of their new account bonuses towards free trades. This offer, for example, offers up to 300 free equity trades for the first 90 days. Now for me, that isn’t particularly useful. I rarely perform more than 3 or 4 trades a month – even though I’m not currently charged for them at my existing brokerage!
However, perhaps if you are a day trader I see perhaps 300 trades could be a big deal. It is worth noting that the normal equity trade fee for TDAmeritrade is $9.99 – which is a little pricey – so long term this could be a factor.
More interesting than the free trades to me is the cash signup bonus they offer. You can earn anywhere between $100 and $1000 dollars – depending on how much you deposit.
One downside is that you are required to keep the account open for 9 months. This is a common sense limitation on the bonus, as I suspect some folks open accounts to get these bonuses and then move on. If you don’t mind using their services for your investing purposes it is easy money however.
Unfortunately for me, I don’t have $250000 in funds kicking around to take advantage of the $1000 dollar offer. But if you have say $25000 available to transfer, then the free $100 – in combination with the free trades – might be worth investigating.
Speaking solely for myself, the incentives offered do not make sense for me to move my business to this brokerage.