TD Ameritrade vs Etrade: Commissions, Fees and Investments Offered
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- Stocks and ETFs: $9.99
- Stocks and ETFs broker assisted: $49.99
- Stocks and ETFs Interactive Voice Response (IVR) Telephone System: $34.99
- Options: $9.99 plus $0.75 per contract
- No-load mutual funds: $49.99
- Treasuries at auction: $25 flat fee
- All other bonds and CMOs, CDs: on a net yield basis
- Futures: $3.50 per contract (inclusive of exchange fees)
- Investment products: stocks, bonds, mutual funds, options, ETFs, bonds, CDs, UITs, futures and forex
- Minimum to open TD Ameritrade account: $0 for cash account, $2,000 for margin account
- All TD Ameritrade fees
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- 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 Etrade account: $2,000 for margin account. For securities accounts (except retirement accounts), an account minimum deposit of
either at least $500 in cash or a deposit of securities is required within 60 days of account opening for the account to remain active. There is no initial minimum deposit requirement for retirement, custodial, or employee stock plan accounts. Accounts not meeting the minimum deposit requirement will be closed after 60 days.
- All Etrade fees
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TD Ameritrade vs Etrade: Pros
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- No surcharges on penny stocks, large orders and after-hours trading
- Large and well known company with many local branches
- Very good trading platform
- Free IRA accounts
- No maintenance and inactivity fees
- Free streaming quotes
- Large selection of independent, third-party research (S&P, Morningstar Associates, and ResearchTeamTM)
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- 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
- No surcharges on large orders, penny stocks and extended hours trading
- Great research amenities
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TD Ameritrade vs Etrade: Cons
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- $9.99 commission for stocks/ETFs and $49 commission for mutual funds are high
- Occasional poor order execution
- The website is sometimes very slow or even down on the high volume days
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- High commissions on all investment products
- High margin rates
- Customer service complaints
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Etrade vs TD Ameritrade: Comparison Summary
Etrade (Etrade review) and
TD Ameritrade (Ameritrade review) are some of the
best known brokerage houses in the nation as well as publicly traded companies.
They both are not cheap though: $9.99 per stock and ETF trade. On the bright side, Etrade and TD Ameritrade don't have surcharges on penny stocks,
extended hours trading and large orders. Both companies don't charge account maintenance and inactivity fees.
Etrade and TD Ameritrade offer their customers rich selection of banking services - checking, savings, money market accounts, CDs and credit cards.
Both online brokerages do not have IRA setup and annual IRA fees, and we recommend TD Ameritrade for a fee-free IRA account.
There are better brokerage firms for beginner investors that these two, that offer vibrant online communities, where users
could ask questions, learn from more experienced traders and even get investment ideas. Some online brokers also offer
virtual trading environment, that allows users to practice trading without risking their money. If you are new to investing, check out
our Best Brokers for Beginners recommendations.
TD Ameritrade bought one of the best online brokers - ThinkorSwim and it benefits a lot from this acquisition. The firm
provides great selection of third-party research, free streaming quotes, and trading tools that are better than the competitor's.
TD Ameritrade is offering more value to prospective customers than Etrade and we strongly recommend it to all investors.
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