TD Ameritrade vs TradeKing 2014: Account Pricing, Commissions, Fees
- Stocks and ETFs: $4.95
- Options: $4.95 + $0.65 per contract
- Short options valued at 5 cents or less, can be bought to close these positions for no charge (commission free)
- Mutual funds: $9.95
- Bonds: $4.95 per bond ($14.95 minimum)
- Treasuries: $24.95
- Certificates of Deposit (CDs): $24.95
- Investments: stocks, options, mutual funds, bonds, CDs, forex, treasuries, ETFs
- TradeKing minimum deposit to open account: $0 for cash account, $2,000 for margin account
- All TradeKing fees
- 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 + $0.75 per contract
- No-load mutual funds: $49.99
- Treasuries at auction: $25
- All other bonds and CMOs, CDs: on a net yield basis
- Futures: $2.25 per contract (plus exchange & regulatory fees)
- Forex: Non-commission currency pairs trade in increments of 10,000 units (and do not contain a "#" symbol suffix). There are no additional fees or charges.
- Investment products: stocks, mutual funds, options, ETFs, bonds, CDs, UITs, futures, and forex
- TD Ameritrade\TDA minimum deposit to open account: $0 for cash account, $2,000 for margin account
- All TD Ameritrade fees
TradeKing vs TD Ameritrade: Pros
- Great commissions
- No minimums, or maintenance or hidden fees
- Free real-time quotes
- Top-rated customer service
- Low margin rates
- Best online investor community
- Fee-free IRAs
- Free DRIPs (dividend reinvestment plans)
- Extensive educational resources
- No surcharges on penny stocks, large orders, or after-hours trading
- Large and well known company with 126 local branches
- Two excellent trading platforms: ThinkOrSwim and Trade Architect
- Practice trading without risking your own money using paperMoney
- No-fee IRA accounts
- No account maintenance or inactivity fees
- Rich selection of independent, third-party research from 12 firms (Standard & Poor's, Morningstar, Jaywalk, TheStreet, etc.)
- Large number of mutual funds - over 13,000 available; 2,500 NTF (no-transaction fee) funds
- Free DRIP: dividend reinvestment plan
TradeKing vs TD Ameritrade: Cons
- Additional $0.01 per share on the entire order for stocks priced at less than $2
- $50 annual inactivity fee if BOTH apply to an account(s):
- Combined account value of the household account(s) is less than $2,500
- No commission-charged trades have been executed in the account(s) during the last 12 months
- International investors are not accepted
- Shorter after-hours trading: 4:00 pm - 5:00 pm EST, instead of 4:00 pm - 8:00 pm EST
- At $9.99 for stocks and ETFs and $49 for mutual funds, commission rates are very high
- Extremely high margin rates
TradeKing vs TD Ameritrade: Comparison Summary
TradeKing (TradeKing Review)
offers drastically lower commissions on stocks and ETFs than
TD Ameritrade (TD Ameritrade Review):
$4.95 per trade versus $9.99 per trade at the larger competitor. Mutual funds are $10 per transaction at TradeKing and $50 at TD Ameritrade!
Both companies don't have maintenance, IRA setup and annual IRA fees as well as fees on large orders and extended hours trading.
TradeKing charges a $0.01 per share more on the entire order of stocks priced less than $2, and an inactivity fee in rare instances.
TradeKing is one of the very Best Brokers For Beginners:
it offers lots of learning materials, vibrant and helpful online investor community, and no additional charge for broker-assisted trades.
According to Smart Money magazine, the firm has highest rated customer service in the industry.
TD Ameritrade offers some of the best trading platforms of all online brokers - Thinkorswim and Trade Architect - that have all the bells and whistles
one would expect from the professional trading software. The firm provides free virtual trading and streaming quotes as well as very good
selection of independent third-party investment research - from 13 different companies.
TD Ameritrade would be our recommendation for "buy and hold", long-term investors, forex and futures traders.
TradeKing would work great for all other customers, especially for IRA accounts, beginner investors, and active traders.
These two companies provide a lot of unique and valuable features. Our suggestion is to open accounts in both firms with $0 down (it will take about 20 minutes),
and take advantage of everything they have to offer at no charge.