If you are a client of TD Ameritrade (now part of Charles Schwab) and wondering how to get crypto exposure, the answer is nuanced. While you cannot buy spot Bitcoin or Ethereum directly on the platform, you do have access to regulated crypto derivatives, ETFs, and trusts. This guide explains exactly what is available, how to trade these products, and the essential risk management practices you need to know.
No, TD Ameritrade (now integrated with Charles Schwab) does not offer direct spot trading of cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), or Solana (SOL) on its standard brokerage platform. You cannot buy crypto with USD and hold it in your brokerage account like you would with a stock or ETF.
However, the firm—through its powerful thinkorswim platform and Schwab's broader product suite—provides extensive access to cryptocurrency-linked investment vehicles. These include:
Because TD Ameritrade is now a Schwab company, you trade these products through Schwab's execution network while retaining access to the thinkorswim interface for advanced charting and order entry.
If you want direct ownership of digital assets, you must use a dedicated crypto exchange (Coinbase, Kraken, Binance.US, etc.). If you want regulated exposure with traditional brokerage protections, futures and ETFs on the Schwab/Ameritrade platform are your primary route.
Understanding the difference between spot markets and derivatives markets is crucial before you place any trade.
Spot trading means buying and owning the actual asset. You receive BTC or ETH directly into a wallet. Ameritrade does not offer wallet services or custodial spot trading because of regulatory complexity, security risks, and custody requirements.
The Chicago Mercantile Exchange (CME) offers Bitcoin and Ether futures contracts. These are standardized agreements to buy or sell a set amount of crypto at a future date. CME Bitcoin futures represent 5 BTC per contract; Micro Bitcoin futures represent 1/10 BTC (0.1 BTC). These products are regulated by the CFTC, trade on a central exchange, and are available on thinkorswim.
Spot ETFs directly hold physical Bitcoin or Ether in custody and issue shares that track the underlying price. They trade like stocks on traditional exchanges (e.g., NASDAQ, NYSE) and have expense ratios. Trusts like GBTC are closed-end funds that may trade at a premium or discount to the net asset value (NAV).
Liquidity refers to how easily you can enter or exit a position without causing a significant price move. Liquidity varies dramatically across the different crypto products available on Ameritrade.
CME Bitcoin futures and spot Bitcoin ETFs (like IBIT and FBTC) are among the most liquid crypto instruments globally. Tight bid-ask spreads and deep order books mean you can trade large size with minimal slippage. Daily volume for these products often exceeds billions of dollars.
Micro futures, while useful for smaller accounts, have thinner order books. Trusts like GBTC can suffer from wider spreads and significant premiums/discounts to NAV, especially during market stress. Always check the current bid-ask spread and average daily volume before placing a market order.
Because crypto markets trade 24/7, but futures and ETFs trade only during traditional exchange hours (with some pre/post-market limitations), you may experience gap openings when the underlying crypto price moves sharply overnight. Plan your orders accordingly.
Crypto is notoriously volatile. A 10% daily move is common, and 30% swings occur several times a year. This volatility is transmitted directly to futures and ETFs.
CME sets margin requirements for Bitcoin futures based on a volatility algorithm. Initial margin for a standard Bitcoin futures contract (5 BTC) is typically 50%–70% of the contract value, meaning you can control a large notional amount with relatively little capital. However, margin calls can happen quickly during sharp downtrends. Maintaining a comfortable cushion above the maintenance margin is essential.
Spot ETFs are less leveraged than futures but still carry the full price volatility of the underlying asset. If Bitcoin drops 20%, your ETF shares drop roughly 20% (minus the expense ratio).
Always check the maintenance margin requirements for futures positions in your account. Schwab may increase margin requirements during periods of extreme volatility without prior notice.
thinkorswim provides a full suite of order types. Using the right order type is critical for managing risk in volatile markets.
Use market orders only when liquidity is high and you need immediate execution. Avoid market orders during low-volume sessions or pre-market/after-hours trading.
Limit orders allow you to specify the maximum price you are willing to pay (buy) or the minimum price you will accept (sell). They guarantee your price but do not guarantee execution.
Stop-loss orders are converted to market orders once a trigger price is hit, helping to limit downside. Stop-limit orders trigger a limit order instead, giving you more price certainty but risking that the order will not fill if the price gaps through your limit price. For crypto futures, use stop-limit orders to avoid being filled at unfavorable prices during flash crashes.
Trailing stops lock in profits by maintaining a fixed distance from the highest price reached. They are particularly useful for capturing upside during strong trends while protecting against reversals.
While many traditional indicators apply, crypto markets have unique characteristics that favor certain tools.
Position sizing is the single most important variable under your control.
For futures, calculate the notional value of your position. A standard CME Bitcoin futures contract (5 BTC) at $60,000 equals $300,000 notional. A Micro contract (0.1 BTC) equals $6,000 notional. For a $50,000 account, trading a single Micro contract represents 12% of your account—which is aggressive but manageable if your stop is tight.
A common rule of thumb: risk no more than 1%–2% of your total account equity on any single trade. Calculate your stop-loss distance in dollars and divide it into your total risk budget to determine the correct number of contracts or shares.
| Product type | Availability | Leverage | Fees / Expense | Liquidity | Ownership |
|---|---|---|---|---|---|
| CME Standard Futures | ✅ Yes (5 BTC/contract) | High (margin ~50–70%) | Brokerage commissions + exchange fees | Very high | Derivative, no physical asset |
| CME Micro Futures | ✅ Yes (0.1 BTC/contract) | High (same margin ratio) | Brokerage commissions + exchange fees | Medium | Derivative, no physical asset |
| Spot Crypto ETFs | ✅ Yes (IBIT, FBTC, etc.) | None (1x exposure) | Expense ratio (~0.25%) | Very high (top ETFs) | Fund holds physical asset |
| Crypto Trusts (GBTC) | ✅ Yes (OTC listed) | None (1x exposure) | Expense ratio (~1.5%) | Medium (can trade at discount) | Trust holds physical asset |
| Spot Crypto Exchange | ❌ Not on platform | Varies (up to 10x on some) | Exchange fees | Varies | Direct ownership (wallet) |
Data and availability subject to change. Always verify product availability and fees within your specific Schwab/Ameritrade account.
Sarah has a $100,000 portfolio and wants $50,000 notional exposure to Bitcoin. She has two realistic options on her Schwab platform:
Outcome: Sarah chooses Option A for leverage but sizes cautiously, risking only 2% of her portfolio ($2,000) on the trade. She calculates her stop-loss distance accordingly. This allows her to control a larger notional amount without overexposing her account.
Cryptocurrency futures, ETFs, and trusts are highly volatile and carry significant risk of loss. Leveraged products like futures can lead to losses that exceed your initial margin deposit. Past performance does not guarantee future results.
This article is for educational and informational purposes only and does not constitute financial, legal, or tax advice. Trading decisions should be based on your own research, risk tolerance, and financial situation. Charles Schwab, TD Ameritrade, and CME rules are subject to change. Always consult the official product disclosures and a qualified financial advisor before trading.
All margin rates, product availability, and fees mentioned are indicative and may have changed. Verify all current values directly through your brokerage account.
No. TD Ameritrade (now Charles Schwab) does not offer direct spot trading of Bitcoin or any other cryptocurrency. You can trade Bitcoin futures, ETFs, and trusts that track the price of Bitcoin, but you cannot hold actual BTC in your brokerage account.
Yes. thinkorswim supports trading of CME Bitcoin and Micro Bitcoin futures, as well as all exchange-listed crypto ETFs and OTC trusts. The advanced charting and order entry tools work seamlessly for these products.
A futures contract is a derivative with an expiry date, allowing for significant leverage and margin trading. A Bitcoin ETF is a fund that holds physical Bitcoin in custody; it trades like a stock, has no expiry, and generally offers 1x exposure without leverage (unless you trade on margin).
Yes. CME futures are regulated by the CFTC. Spot Bitcoin ETFs are regulated by the SEC and trade on traditional stock exchanges. These products offer higher regulatory oversight compared to offshore crypto exchanges.
At expiry, the contract is settled in cash (not physical BTC) based on the CME Bitcoin Reference Rate. If you still want exposure, you must manually close the expiring contract and open a position in the next month’s contract (known as rolling the position).
Margin requirements are set by CME and can change daily. You can view the latest margins on the CME Group website under the “Performance Bonds” section. Your Schwab/Ameritrade account will also show the maintenance margin required for open positions.
GBTC is a closed-end trust, meaning its share supply is fixed. When investor demand is low relative to the underlying Bitcoin value, the shares can trade at a discount to the NAV. This discount can be significant (often 10–30%) and is a key risk factor to consider.
Use stop-limit orders to protect against flash crashes while controlling the fill price. For entering positions, use limit orders to avoid paying the spread. Avoid market orders during low-volume periods to prevent excessive slippage.