Table of Contents
Introduction
When investing in stocks, selecting the right brokerage is important. Two of the most popular online stock brokerages are TD Ameritrade and E*TRADE, both of which provide a wide range of investment products and tools. This guide is designed to help you compare TD Ameritrade vs. E*TRADE and assist you in determining which platform is most suitable for your investment objectives.
Platform and User Experience
The interfaces of both TD Ameritrade and E*TRADE are easy to use and can be navigated by both new and experienced investors. The feedback on TD Ameritrade is particularly positive, with many praising its advanced features, making it particularly popular among active traders. On the other hand, E*TRADE’s Power E*TRADE platform is especially praised for its simplicity and ease of use.
In the category of trading convenience, both brokerages offer decent mobile applications for trading on the go. The thinkorswim mobile app from TD Ameritrade offers a great trading experience with many features such as advanced charting tools. E*TRADE’s app is also quite easy to use and comes with real-time market data.
- The thinkorswim platform of TD Ameritrade is especially great for active traders.
- E*TRADE’s Power E*TRADE platform is known for its ease of use.
- All of the companies reviewed have good mobile apps for trading.
Investment Options
In this regard, TD Ameritrade and E*TRADE offer a variety of products for investment. TD Ameritrade has no transaction fee mutual funds of more than 4,000 and has a decent number of ETFs, stocks, options, and futures. Conversely, E*TRADE also has a wide range of products including stocks, ETFs, mutual funds, options, and futures.
One major difference between the two companies is that while TD Ameritrade offers forex trading, E*TRADE does not. Therefore, if you have an interest in trading currencies, then TD Ameritrade is the better choice.
- Both firms present a wealth of investment options.
- TD Ameritrade offers forex trading, which is not available in E*TRADE.
Research and Education
In the area of research and education, both TD Ameritrade and E*TRADE excel in providing the necessary information. TD Ameritrade has a wide range of research tools including real-time quotes, advanced charting, and market analysis. It also provides access to reports from third-party providers like Morningstar and CFRA.
E*TRADE does not lag behind as it also offers numerous research tools, including real-time market data, watch lists, and video lessons. Some of E*TRADE's research partners include S&P Capital IQ and Thomson Reuters.
- Both offer unique research tools.
- TD Ameritrade provides access to third-party insights.
- E*TRADE has notable firm research.
Costs and Fees
In the area of costs and fees, it’s essential to consider the commission and account fees charged by the brokerages. Both TD Ameritrade and E*TRADE do not charge fees on trades for stocks, ETFs, and options. However, note that TD Ameritrade has a higher charge for options trading compared to E*TRADE.
Both also charge account maintenance fees, but these can be waived if certain criteria are met. The minimum balance that triggers such fees at TD Ameritrade is $2,000, while at E*TRADE it is $10,000.
- Both brokerages offer commission-free trading.
- TD Ameritrade has higher options trading fees.
- TD Ameritrade and E*TRADE have minimum balance requirements to waive fees.
Customer Service
In the customer service department, both TD Ameritrade and E*TRADE are commendable in helping their clients. TD Ameritrade offers 24/7 support via phone, email, and live chat, in addition to branch offices where clients can get assistance in person.
Equally, E*TRADE offers 24/7 support through phone, email, and live chat, along with financial consultants who can give personalized advice. They also have branch offices for walk-in clients.
- Both brokerages provide 24/7 customer service.
- They have branch offices for personal assistance.
Summary
Choosing the right brokerage is key to successful investing. Both TD Ameritrade and E*TRADE have proved to be reliable brokerages, each offering a wide range of investment options, accessible platforms, and useful research tools. As you decide, reflect on your investment goals, trading preferences, and the specific features that matter most to you.
If you’re an active trader needing advanced tools and features, TD Ameritrade’s thinkorswim might be your best option. Conversely, if you prefer a user-friendly interface, E*TRADE’s Power E*TRADE could be a better fit.
Ultimately, the choice between TD Ameritrade and E*TRADE will depend on your personal needs and preferences. Take the necessary time to research and evaluate the features and fees of each brokerage to ensure your decision aligns with your financial goals.
