Stock Broker Reviews

TD Ameritrade or Etrade: which brokerage to choose?



TD Ameritrade review 2010 ETrade review


Ameritrade vs Etrade Trading Fees and Investments Offered




Ameritrade
Etrade
  • Stocks and ETFs: $9.99
  • Options: $9.99 plus $0.75 per contract
  • No-load mutual funds: $49.99
  • Investment products: stocks, bonds, mutual funds, options, ETFs
  • Minimum to open account: $1,000 equity is required to open an IRA, and $2,000 to open any non-IRA account
  • All TD Ameritrade fees
  • Stocks and ETFs: $9.99 if 0-149 trades per quarter; $7.99 if 150+ trades per quarter
  • Options: $9.99 plus $0.75/contract if 0-149 trades per quarter; $7.99 plus $0.75/contract if 150+ trades per quarter
  • Mutual Funds: $19.99
  • Futures contracts: $2.99 per contract, per side + fees
  • Investment products: stocks, bonds, mutual funds, futures, options, ETFs
  • Minimum to open account: $1000
  • All Etrade fees



Compare Ameritrade and Etrade Pros



Ameritrade
Etrade
  • No surcharges for penny stocks, large orders and after-hours trading
  • Large and well known company with many branches
  • No maintenance and inactivity fees
  • Large selection of third-party research
  • Very good trading tools
  • No IRA account fees, no minimums with electronic statements and confirms
  • Minimum to open: $1,000 for cash account, $2,000 for margin account
  • Banking products: checking, savings, money market accounts, CDs and credit cards



Compare Ameritrade and Etrade Cons



Ameritrade
Etrade
  • $9.99 commission for stocks/ETFs is high, $49 commission for mutual funds is extremely high
  • Poor order execution
  • The website is sometimes very slow or even down on the most crucial days
  • High commissions
  • Extra $0.015 per share will apply to that portion of the order that exceeds 2,000 shares
  • $40 Account Service Fee might be charged each quarter in some instances
  • Very high margin rates
  • IRA premature distributions: $25



Ameritrade vs Etrade: Comparison Summary



Etrade and TD Ameritrade are some of the best known brokerage houses in the nation. They both have high commissions though: $9.99 per stock and ETF trade. Unlike Ameritrade, Etrade also charges inactivity fee and additional commission for orders of over 2,000 shares.

Etrade offers its customers more robust and powerful trading tools. The firm does not suffer from website slowness and order execution problems that happen at TD Ameritrade on high-volume days.

Both firms do not have IRA setup and annual IRA fees. They did not, however, made it into our Recommended Brokerages for an IRA Account list.

For beginner investors, there are better brokerage firms that offer vibrant online communities where users could ask questions, learn from more experienced traders and even get investment ideas. Check out our Best for Beginner Investor Brokers recommendations.

Commissions at both TD Ameritrade and Etrade are just too high for 2010: why pay $10 for a stock trade and $49 for a mutual fund if you could get them for $3 and $10 respectively? There are highly rated brokerage firms with much lower costs and the same or above level of services.


TD Ameritrade Website

TD Ameritrade review 2010

Etrade Website

ETrade review

ING
Share |

Stock broker promotions:
Copyright ©2009-2010 Brokerage-Review.com. All rights reserved.
The stock brokerage firm you select is solely responsible for its services to you, the user. Brokerage-Review.com shall not be liable for any damages or costs of any type arising out of or in any way connected with your use of a brokerage house's services. Brokerage-Review.com has partner relationships with other companies. As a partner, we often provide reviews of products and services based on our personal opinions. We are not compensated for positive reviews. While we strive to make sure that the information we present here is true and accurate upon publication, the rates and offers that we share with you may change without notice, so please visit the sites we reference for more up to date information.