Table of Contents
Introduction
When it comes to online brokerage firms, E*TRADE and TD Ameritrade are two of the most well-known names in the industry. Both platforms offer a wide range of investment options and tools, making them popular choices for novice traders. However, choosing between the two can be a daunting task, especially for those who are new to the world of investing. In this article, we will compare E*TRADE and TD Ameritrade in a head-to-head battle, examining their features, fees, customer service, and more, to help you make an informed decision.
Platform Features
One of the most important factors to consider when choosing an online brokerage platform is the features it offers. Both E*TRADE and TD Ameritrade provide a variety of tools and resources to help traders make informed decisions. Let's take a closer look at what each platform has to offer:
E*TRADE
E*TRADE is known for its user-friendly platform and robust set of features. The platform offers a wide range of investment options, including stocks, bonds, mutual funds, and ETFs. E*TRADE also provides access to advanced trading tools, such as real-time streaming quotes, customizable charts, and technical analysis tools. Additionally, E*TRADE offers a mobile app that allows traders to manage their investments on the go.
TD Ameritrade
TD Ameritrade is another popular choice for novice traders. The platform offers a wide range of investment options, including stocks, options, futures, and forex. TD Ameritrade also provides access to advanced trading tools, such as thinkorswim, which is known for its powerful charting capabilities and advanced order types. Like E*TRADE, TD Ameritrade also offers a mobile app for traders who prefer to trade on their smartphones or tablets.
Both E*TRADE and TD Ameritrade offer a variety of educational resources, including articles, videos, and webinars, to help traders learn the basics of investing and improve their trading skills. However, TD Ameritrade is often praised for its extensive educational offerings, which include immersive courses and in-person events.
Fees and Commissions
When it comes to fees and commissions, E*TRADE and TD Ameritrade have different pricing structures. Let's compare the fees charged by each platform:
E*TRADE
E*TRADE charges $0 commission for online stock, ETF, and options trades. However, there is a $0.65 per contract fee for options trades. E*TRADE also charges a $25 fee for broker-assisted trades and a $19.99 fee for mutual fund trades. Additionally, E*TRADE charges a $500 minimum deposit to open a brokerage account.
TD Ameritrade
TD Ameritrade also charges $0 commission for online stock, ETF, and options trades. However, there is a $0.65 per contract fee for options trades. TD Ameritrade does not charge any fees for broker-assisted trades or mutual fund trades. Additionally, TD Ameritrade does not have a minimum deposit requirement to open a brokerage account.
It's worth noting that both E*TRADE and TD Ameritrade offer a selection of commission-free ETFs, which can be a cost-effective option for investors who prefer to invest in these types of funds.
Customer Service
Customer service is an important aspect to consider when choosing an online brokerage platform, especially for novice traders who may need assistance with their investments. Let's compare the customer service offered by E*TRADE and TD Ameritrade:
E*TRADE
E*TRADE offers customer support via phone, email, and live chat. The platform also provides a comprehensive help center, which includes FAQs, tutorials, and guides to help traders navigate the platform. E*TRADE has received positive reviews for its customer service, with many users praising the platform's responsiveness and helpfulness.
TD Ameritrade
TD Ameritrade also offers customer support via phone, email, and live chat. The platform provides a robust help center, which includes articles, videos, and webinars to help traders find answers to their questions. TD Ameritrade has a reputation for excellent customer service, with many users reporting positive experiences with the platform's support team.
Security
When it comes to online investing, security is of utmost importance. Both E*TRADE and TD Ameritrade take security seriously and have implemented measures to protect their users' accounts and personal information. Here are some of the security features offered by each platform:
E*TRADE
- E*TRADE uses advanced encryption technology to protect users' personal and financial information.
- The platform offers two-factor authentication, which adds an extra layer of security to users' accounts.
- E*TRADE provides account protection through the Securities Investor Protection Corporation (SIPC), which protects against the loss of cash and securities in case of brokerage failure.
TD Ameritrade
- TD Ameritrade also uses advanced encryption technology to protect users' personal and financial information.
- The platform offers two-factor authentication for added security.
- TD Ameritrade provides account protection through the SIPC, just like E*TRADE.
Conclusion
Choosing between E*TRADE and TD Ameritrade can be a tough decision for novice traders. Both platforms offer a wide range of investment options, user-friendly interfaces, and robust features. However, there are some key differences to consider. E*TRADE has a lower minimum deposit requirement and charges lower fees for broker-assisted trades and mutual fund trades. On the other hand, TD Ameritrade is known for its extensive educational offerings and powerful trading platform, thinkorswim.
Ultimately, the choice between E*TRADE and TD Ameritrade will depend on your individual needs and preferences. It's important to consider factors such as platform features, fees and commissions, customer service, and security when making your decision. By carefully evaluating these factors, you can choose the platform that best suits your trading style and goals.
