Overview
TD Ameritrade (TDA) 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.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
TD Ameritrade
|
$0
|
$49.95
|
$0 + $0.65 per contract
|
$0
|
$0
|
|
Etrade
|
$0
|
$19.95
|
$0 + $0.65 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
TD Ameritrade
|
|
|
|
|
|
|
|
Etrade
|
|
|
|
|
|
|
Promotions
TD Ameritrade: Trade stocks and ETFs for free + get up to $600 bonus.
Etrade:
At E*TRADE, get $0 trades + 65₵ per options contract.
Fees and Account Minimums
TD Ameritrade’s charge for trading stocks and ETF’s is $0, while Etrade charges the same amount. For options,
both firms charge an extra $0.65 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 $25 at either TD Ameritrade or Etrade.
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.
First category is a tie.
Mutual Funds
Etrade offers its clients over 9,000 mutual funds, of which 4,400 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 13,000 mutual funds, of which 4,200 carry no transaction fee and no load.
Transaction fee funds carry a 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 450+ 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 arguably the best trading platform on the market. It is called
Thinkorswim and it is
a stand-alone program. Thinkorswim offers free level II quotes, stock analysis, market news, account info, and
order entry. It is free to use for everyone 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. The 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.
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.
Promotions
TD Ameritrade: Trade stocks and ETFs for free + get up to $600 bonus.
Etrade:
At E*TRADE, get $0 trades + 65₵ per options contract.
Results
There were three ties, TD Ameritrade was victorious in four categories, and Etrade won just one category. The
winner by a wide margin is TD Ameritrade. Despite the results, Etrade is a good broker for IRA accounts as well
as stocks and ETFs investing.
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