How to Negotiate the Commission Rate With TD Ameritrade

Negotiate a lower trading commission with TD Ameritrade by phone.

TD Ameritrade is an online broker service that allows you to trade stocks and engage in other online investing activities. You can also trade bonds, futures, foreign currency and mutual funds. As of June, 2011, TD Ameritrade charges $9.99 for Internet trades. Other brokerages charge lower commissions for stock trades. If you prefer to keep your TD Ameritrade account open, but lower your trading commissions fee, negotiate with a customer service agent. Before calling, be aware of the commission rates for TD Ameritrade's competitors, such as ETrade or Scottrade.

Instructions

1. Look up the commission rates for TD Ameritrade competitors online. For example, E Trade's commission is $7.99; Fidelity's commission is $7.95, as of June 2011.

2. Call TD Ameritrade's customer service line at 800-669-3900. Follow the prompts until you reach a live agent.

3. Ask the live agent whether your trading commission can be lowered. Explain to the agent that you are considering switching brokers because you can trade with other brokers for lower commissions. Name one or two competitors that you've chosen. Tell the agent you prefer to stay with TD Ameritrade, however, the commission fee is forcing you to consider closing your account and opening an account with another broker. Although difficult, the representative might negotiate your commission if you say you're going to close your account. Citing a competitor's name and fee helps with the negotiation.

References

• Time: Brokers Wage a Price War on Commissions

Resources

• Stocks and Mutual Funds: Compare Online Brokers
• Fool.com: Getting Started With Brokers (Commission Schedule Comparison)