Ameriprise and Competitors Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
12.825%
|
$0
|
$0
|
|
Fidelity
|
$0
|
$49.95
|
12.825%
|
$0
|
$0
|
|
Vanguard
|
$0
|
$20
|
13%
|
$20*
|
$20*
|
Ameriprise and Competitors Services
Ameriprise vs. Vanguard, Fidelity, and Schwab Introduction
If you're in the market for a new investment account, you should consider Fidelity, Vanguard, Ameriprise, and Charles Schwab. Here's an overview of what these financial giants offer:
Investing and Trading
All four companies offer brokerage and managed investment accounts. Discount online accounts are available at Fidelity, Schwab, and Vanguard, while Ameriprise provides only full-service accounts.
Each of these firms offers a wide range of tradable products, including stocks, options, various funds, and fixed income options. Fidelity alone offers cryptocurrencies; Schwab provides futures and forex; and Ameriprise includes more niche products like private equity and hedge funds. Over-the-counter (OTC) stocks are available at Schwab, Fidelity, and Ameriprise but not at Vanguard. Note that zero-commission trading is offered by Fidelity, Schwab, and Vanguard, but not Ameriprise.
All firms provide advisory accounts with varying fees and minimums, and human financial planners are accessible at each, though Vanguard lacks physical branches. Robo-advisory services are offered by Schwab, Vanguard, and Fidelity, but not by Ameriprise.
Winner: Tie between Fidelity and Schwab
Find a Financial Advisor
If you are looking for a professional money management service in your area, you can
find a Financial Advisor on the Wiser Advisor
(or read
Wiser Advisor review).
Visit Wiser Advisor
Cash Management
Except for Vanguard, all firms offer advanced banking features, including debit cards and unlimited ATM fee rebates. Ameriprise has account minimum requirements for these benefits. Schwab's ATM program is global, whereas Fidelity's is US-only.
All four firms participate in FDIC-sweep programs for uninvested cash, with some money market mutual funds offering over 5.0% annual returns.
Winner: Another draw between Fidelity and Schwab
Margin
If you're interested in trading with leverage, all four firms offer margin accounts, but their rates vary. Ameriprise’s margin rates range from 13.5% to
13.5%. Vanguard's rates vary from
11% to 13%. Schwab's rates are between 11.075% and 12.825%. Fidelity's rates range from 11.075% to 12.825%.
Winner: Schwab and Fidelity
Website Tech
Both Vanguard and Ameriprise offer basic online functionalities like downloading statements and trading. Fidelity's website offers advanced trading features, including complex order types and tools for options trading.
Schwab's thinkorswim platform provides a high-end trading experience with comprehensive tools and features, including a stock screener, Level II quotes, and multiple trade tickets. It also offers a practice mode for trading simulations.
Winner: Schwab
Mobile Apps
The Ameriprise app includes features such as watchlists, bill pay, and mobile check deposit, but lacks trading capabilities. In contrast, Vanguard's app allows trading of stocks, ETFs, and its mutual funds, though it has limited order types.
Schwab's thinkorswim app includes advanced charting and multiple order types, complementing Schwab’s main app which features market news and check deposit capabilities.
Fidelity's apps provide a robust trading environment with a variety of features and tools, catering to different user preferences and investment styles.
Winner: Small advantage to Schwab
Desktop Software
Vanguard and Ameriprise focus on long-term investment management and do not offer desktop software for active trading. However, Fidelity and Schwab provide robust platforms that cater to active traders.
Schwab's trading platform, thinkorswim, is equipped with professional-grade tools such as a backtesting gadget, economic calendar, and pairs trading. It also features live CNBC streaming, adding significant value for traders.
Fidelity’s platform, Active Trader Pro, offers live Bloomberg news and a suite of advanced trading tools, including basket orders, Level II data, alerts, and extensive options strategies.
Winner: Schwab
Add-on Services
Individual Retirement Accounts: You can open an IRA at any of these firms. Ameriprise charges annual fees for IRAs, while Vanguard imposes fees on some business IRAs.
Fully-Paid Securities Lending Program: This service is available at Schwab, Vanguard, and Fidelity.
Extended Hours: Vanguard, Schwab, and Fidelity offer after-hours trading. Schwab and Fidelity also provide pre-market and some overnight trading options.
Fractional Shares: You can buy fractional shares at all firms. Vanguard offers this for ETFs, Schwab for S&P 500 stocks, and Fidelity for over 7,000 stocks and ETFs.
Dividend Reinvestment Plans (DRIP): All four companies offer DRIP, but Ameriprise limits it to specific accounts.
Initial Public Offerings: Schwab and Fidelity allow you to buy new stock releases directly. Ameriprise offers initial offerings of preferred securities and closed-end funds.
Winner: Close call between Schwab and Fidelity
Find a Financial Advisor
If you are looking for a professional money management service in your area, you can
find a Financial Advisor on the Wiser Advisor
(or read
Wiser Advisor review).
Visit Wiser Advisor
Our Recommendations
Small Accounts: Ameriprise isn't suitable for small accounts due to its high fees and account minimums. Any of the three discount brokerage accounts (Fidelity, Schwab, or Vanguard) are more suitable, with Fidelity being the best overall due to its fractional-share service.
Long-Term Investors & Retirement Savers: Consider using Ameriprise, Fidelity, or Schwab, which offer a combination of accounts managed by financial planners.
Beginners: An advisory account at any of these firms would be beneficial.
Mutual Funds: Fidelity offers the largest selection of mutual funds, while Schwab has the most commission-free options.
Frequent Stock Trading: Schwab’s thinkorswim platform is recommended for its comprehensive trading tools.
Ameriprise vs Competitors Outcome
While Ameriprise offers excellent traditional in-person service, it doesn't quite match up to the comprehensive offerings and technological advancements of Fidelity and Schwab.
Open Charles Schwab Account
Visit Schwab Website
Open Fidelity Account
Visit Fidelity Website
Open Ameriprise Account
Visit Ameriprise Website
Updated on 7/11/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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