Can I Have More Than One Brokerage Account on TD Ameritrade?

Yes. You can have multiple accounts at TD Ameritrade.

You can link them to access all accounts with a single username and password. You only need to visit Client Services, click on My Profile, and hit Link Accounts.

It is important to note that some account types might be restricted from linking. If this occurs, you need to speak with customer service.

That said, why should you have multiple accounts? Let's explore the benefits:

The Benefits of Having Multiple Accounts

Experiment with Unique Strategies

First, you can test our various trading strategies. For example, one brokerage account can be used for long-term investments that are only used to accumulate dividends and add to your positions. The other one can be exploited for day-trading efforts or risky bets on hot stocks (think AMC or GameStop).

Margin Costs

This applies to multiple brokerage accounts in general, but you could enjoy lower margin costs. Trading on margin is essentially a loan you take against the equity on your brokerage account. This allows you to generate a greater stake in a stock when you do not possess enough capital.

Tax Purposes

With different brokerage accounts, you can spread your tax obligations or utilize various models that minimize your tax penalties, such as a Roth IRA.

One Broker or Multiple?

In the end, should you stay with one brokerage or multiple? It depends on what type of investor you are.

If you have a lot of money at your disposal, it is best to spread it across different firms. However, if you are someone who not as active as you would like, perhaps it would be prudent to stay with one organization so you do not forget about the other account and its security features.