Compare TD Ameritrade vs Etrade

Etrade or TD Ameritrade - which is better in 2017? Compare IRA/Roth accounts, online investing fees, stock broker mutual fund rates, and differences.

Overview

TD Ameritrade and Etrade are two low-cost brokerage firms who advertise frequently and offer investors an array of investment and banking products. Investors of course will want to know which is better: TD Ameritrade or Etrade? Let's find out.

Broker Fees	Stock/ETF Commission	Mutual Fund Commission	Options Commission	Maintenance Fee	Annual IRA Fee
TD Ameritrade	$6.95	$49.95	$6.95 + $0.75 per contract	$0	$0
Etrade	$6.95	$19.95	$6.95 + $0.75 per contract	$0	$0

Broker Review	Cost	Investment Products	Trading Tools	Customer Service	Research	Overall Rating
TD Ameritrade
Etrade

Fees and Account Minimums

TD Ameritrade’s standard charge for trading stocks and ETF’s is $6.95, while Etrade charges the same amount. Etrade offers a discount of $2 per trade for investors who place more than 30 trades per quarter. TD Ameritrade has a discount for active traders too but it doesn't advertise it - active clients simply call the broker and negotiate better rates. For options, both firms charge an extra $0.75 per contract (at Etrade it's $0.50 per contract for customers with over 30 trades per quarter).

Placing a trade with a living, breathing, broker costs a very steep $44.99 at TD Ameritrade, while doing the same at Etrade incurs a $25 charge.

Both brokers offer slightly more than 100 ETF's commission-free.

Brokerage accounts at both TD Ameritrade and Etrade carry no inactivity fees or account maintenance fees. The minimum initial deposit to open a brokerage account at Etrade is $500, while TD Ameritrade has no minimum.

Both brokers offer no-fee IRA's.

Etrade takes the first category.

Mutual Funds

Etrade offers its clients over 8,000 mutual funds, of which 1,300 are no-load and don't have transaction fee. Mutual funds that carry a transaction fee are $19.99.

TD Ameritrade has access to more than 11,000 mutual funds, of which nearly 2,000 carry no transaction fee and no load. Transaction fee funds carry a very pricey $49.99 charge.

Overall, Etrade wins this category.

Research and Education

Etrade offers an array of educational resources for its clients, consisting of on-demand videos, articles, and in-person seminars. Various topics are covered, such as fixed-income, options, beginner investing, and IRA’s.

TD Ameritrade offers in-depth research for stocks, options, ETF’s, and mutual funds. Customers have access to free stock and ETF reports from Credit Suisse, TheStreet.com, Morningstar, S&P Capital IQ, and others.

Investools is an educational service owned by TD Ameritrade. It offers courses at the beginner, advanced, and expert levels on a variety of financial topics, such as forex, options, and stocks.

This category produces a dead heat.

Customer Service

TD Ameritrade has phone service staffed 24/7. Representatives are available certain hours of the day who speak Spanish, Cantonese, or Mandarin. The brokerage has more than 100 brick-and-mortar branches located across the United States for old school investors who want more personal investment assistance.

Etrade has physical branches, but only 30. The broker offers 24/7 telephone customer service.

TD Ameritrade comes out on top in this category.

Trading Tools

TD Ameritrade offers several different platforms all with free Level II quotes. First is the standard web site, which is user friendly. Next is Trade Architect, a Java-based platform launched from the web site. Finally, there is Thinkorswim. This platform is a stand-alone program. It offers stock analysis, market news, account info, and order entry. All platforms are free to use with no frequent trader requirement.

A great tool that TD Ameritrade offers is their paperMoney, a practice platform within Thinkorswim that allows traders to simulate trading with virtual currency.

Etrade's web site is sophisticated and user friendly. The broker's Total Trade Ticket can be used to place orders for stocks, options, and ETF’s. Advanced platforms are available here, but only for frequent traders. E*TRADE Pro is a desktop application, and E*TRADE MarketTrader is a browser platform.

This category also goes to TD Ameritrade.

Mobile Trading

Etrade has applications for Windows phone, iPad, iPhone, Android phone and tablet, Amazon Fire phone, and Kindle Fire HD. The iPhone app has the most features. The interface is easy to navigate. Users will find charts, a trade ticket, mobile check deposit, educational videos, and many other useful features.

TD Ameritrade has three different apps: Mobile App, Mobile Trader App, and a Thinkorswim app for investors with different experience level (beginner, mid-level and advanced). They can be used on iPhone, iPad, and Android. he Thinkorswim app has paperMoney for customers who want to practice trading on a mobile platform.

Etrade and TD Ameritrade are pretty close in this category.

Cash Management Features

TD Ameritrade offers a checking account with free checks, a free Visa debit card, and no monthly account fees. ATM fees are reimbursed nationwide. The account balance is deposited in up to two FDIC insured banks, doubling the default $250,000 insurance.

Etrade has an FDIC-insured bank that offers a checking account with the standard $250,000 protection. The account comes with a Visa debit card and checks. It can be linked to an E*Trade brokerage account.

Etrade rebates ATM fees for customers who have a minimum balance of $5,000, or who have combined balances across all Etrade accounts of at least $50,000.

TD Ameritrade is the winner here.

Promotions

TD Ameritrade: Trade free for 60 days + get up to $600.

Etrade: At E*TRADE, active traders get $4.95 trades + 50₵ per options contract.

Additional Features

TD Ameritrade offers forex trading, while Etrade does not. Both brokerage firms offer futures trading. Etrade charges $1.50 per contract while TD Ameritrade charges $2.25.

TD Ameritrade wins here, too.

Results

There were two ties, TD Ameritrade (read review) was victorious in four categories, and Etrade (read review) won two most important categories - Pricing and Mutual Funds. The winner is TD Ameritrade.

Despite the results, Etrade is our recommended broker to beginner investors, for IRA accounts and mutual funds investing, as well as for active stock, options, and ETF traders.

TD Ameritrade Offer - 60 days free + $600:

Open Account

Etrade Offer - discount for active traders: