Table of Contents
Introduction
When it comes to discussing online brokerage firms, it is almost impossible to miss the names of E*TRADE and TD Ameritrade. Every platform has hundreds of investment options and tools that appeal particularly to the novice trader. However, for the first-time investor, the number of choices can be confusing. This article will compare E*TRADE and TD Ameritrade, looking at features, fees, customer service, and more to help you decide which is right for you.
Platform Features
One of the first things you need to consider when choosing an online brokerage platform is the features that the platform offers. Both E*TRADE and TD Ameritrade are feature-rich platforms that are designed to help traders make informed decisions. Let's find out what each platform has to offer:
E*TRADE
E*TRADE has been known for its simplicity and richness of options available to the user. You can invest in stocks, bonds, mutual funds, and ETFs, among other products. Furthermore, E*TRADE provides advanced trading tools such as real-time streaming quotes, charts that can be personalized, and technical analysis tools. The application also allows the user to manage their investments while on the go.
TD Ameritrade
Another favorite among novice traders, TD Ameritrade, has a vast selection of investment products including stocks, options, futures, and even foreign exchange. The platform is popularly known for its thinkorswim tool which has great charting and order entry functionality. Like its counterpart, TD Ameritrade also has a mobile application through which users can trade stocks and manage their accounts if they want to.
Since both platforms offer a number of resources, including articles, videos, and webinars, to help beginners learn about investing and trading. But, according to some sources, TD Ameritrade has better educational materials than most of its competitors, and it also offers educational sessions in the form of courses and workshops, as well as offline seminars.
Fees and Commissions
When it comes to comparing the fees and charges of the two platforms, E*TRADE and TD Ameritrade have different fee structures. Let’s have a look at the costs of the two platforms:
E*TRADE
E*TRADE does not charge for online equity, ETF and options trades but there is a charge of $0.65 per contract for options trades. However, there is a $25 fee for broker assisted trades and $19.99 for mutual fund trades. The minimum initial balance to open a brokerage account is $500.
TD Ameritrade
On the other hand, TD Ameritrade also has $0 commission for online stock, ETF, and options trading. Its platform has a $0.65 fee for options trades but does not charge for broker-assisted trades or mutual fund trades. An interesting feature is that TD Ameritrade does not have account balance requirements to open a brokerage account.
Both companies also offer commission-free ETFs, which can be useful for investors who are looking to invest in this kind of fund.
Customer Service
Customer service is an important factor that should not be overlooked when selecting an online brokerage platform, especially if you are a newcomer in the market and may require some assistance at times. Staying that, we will compare the support of E*TRADE and TD Ameritrade:
E*TRADE
E*TRADE has customer support through phone, email, and live chat. The platform also has a help center that has FAQs, tutorials, and guides to help individuals navigate through the platform. Reviews mention that E*TRADE has a helpful and friendly customer service team.
TD Ameritrade
The same, TD Ameritrade offers telephone, email and live chat support. It has a help center which is packed with articles, videos and webinars to help clients find the answers they need quickly. The platform has received high marks for customer service with many users sharing kind words about the support team.
To summarize, both platforms are safe and secure; therefore, it is up to the user to decide which platform suits them best.
