TD Waterhouse Review



TD Waterhouse is part of the international TD Financial group headquartered in Toronto. They are one of the largest and best known execution only stockbrokers in the world. Trading in America as TD Ameritrade they’re a multi-billion dollar financial powerhouse.

They offer a number of different trading solutions from standard stock trading and ETFs to derivatives trading and spread betting as well as more traditional financial products like savings accounts.

If you’re looking for a multinational broker with access to UK and international markets then TD Waterhouse are going to be somewhere near the top of your list. So let’s take a look at their trading platform and services to find out if they’re the perfect broker for you.

 

Fees & Commissions

Standard Trades £12.95
Frequent Trader £8.95
Management Fee (Quarterly) £10.00*
Telephone Trades £30.00

 *Management Fee waived if you trade in the quarter and maintain a balance in-excess of £5000.

Website

As with most large financial institutions TD Waterhouse’s website is a little on the complicated side. It can take a little time to figure out exactly what it is you’re looking for as they offer a number of different accounts.

You can choose from standard trading accounts, ISA accounts, derivatives accounts which include CFDs, Forex and futures as well as their Pro Trader account which is a professional style level 2 platform.

I could go on as there are also international trader accounts, offshore accounts and so on but I know your time is short. So I’m going to concentrate this review on their Trading Plus account which is a standard trading account with access to international markets. TD-Waterhouse

Trading Tools

The Trading Plus trading platform is web based and comes complete with live pricing but no level 2 access. It’s a nicely laid out platform but it’s lacking some of the more sophisticated tools like stock screeners etc.

The charting is also severely restricted offering only a limited number of chart patterns and time frames. But this is only a basic platform and it doesn’t pretend to be anything else. You can download the more sophisticated Pro Trader platform if you need a more sophisticated tools set, but this will prove to be expensive if you don’t trade regularly.

As it is the standard platform will suffice for smaller traders, you get flexible orders types including market orders, limit orders, fill or kill (you set the desired execution price) and stop loss. These order types will cover 99% of smaller investor’s trades.

You also have the choice of using their Personal Trading Level. This enables you to trade without having any funds in your account; you simply pay up on settlement day. Since this is effectively credit, it’s subject to status and should only be used by experienced investors.

Finally there’s stockwatch which enables you to create a virtual portfolio that updates automatically showing you your realized profit and loss without the need to risk any real capital. This is incredibly useful for beginners or if you’re looking at developing a new investment strategy.

Pros

  • 24 Hour Trading
  • Full Range of investment products
  • Easy to use platform
  • Excellent customer service

Cons

  • Account inactivity fees
  • Complicated website
  • Expensive Broker Assisted Trades

Summary

TD Waterhouse is a very accomplished broker, they have a wide range of products and excellent customer service, add to that 24 hour trading and the back up that comes from a multinational organization and we have a world class broker on our hands.

One thing that does let them down is a lack of training or education for beginners. I think in the UK most people’s first experience of trading is via a spread betting firm so the execution only brokers don’t feel the need for educating beginners.

They have a full range of platforms to choose from, some would say too many. But ones things for sure you will be able to find a platform that suits your trading style and experience no problem at all.

I would recommend TD Waterhouse to experienced traders with several years experience, you’ll find the basic platform a little too basic for your needs but the Pro Trader platform is more than adequate. I think beginners will find the basic platform reasonably easy to use, but the lack of education means there are better brokers to choose from if you’re just starting out.




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