T. Row Price vs Vanguard, Fidelity, TD Ameritrade, and Charles Schwab (2021)



T. Row Price vs Fidelity & Others: Cost


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
Ally Invest $0 $9.95 $0.50 per contract $0 $0
TD Ameritrade $0 $49.99 $0.65 per contract $0 $0
Fidelity $0 $49.95 $0.65 per contract $0 $0
Charles Schwab $0 $49.95 $0.65 per contract $0 $0
Etrade $0 $19.95 $0.65 per contract $0 $0
Vanguard $0 $20 $1.00 per contract $20* $20*
T. Rowe Price $19.95 $35 $19.95 + $1.00 per contract $10 $10


T. Row Price vs TD Ameritrade & Others: Services


Broker Review Cost Investment Products Trading Tools Customer Service Research Overall Rating
Ally Invest
TD Ameritrade
Fidelity
Charles Schwab
Etrade
Vanguard
T. Rowe Price


New Account Promotions

Ally Invest: Up to $3,000 cash bonus + $0 commission trades.

Open Ally Invest Account

TD Ameritrade: $0 commissions + transfer fee reimbursement.

Open TD Ameritrade Account

ETRADE: Get zero commission on stock and ETF trades.

Open Etrade Account






T. Rowe Price Review


T. Rowe Price is a reputable brokerage firm, a division of T. Rowe Price Investment Services, Inc. The company is a member of FINRA and SIPC. Combined assets under management of the T. Rowe Price group of companies is over $900 billion.


Types Of Brokerage Accounts And Minimums


T. Rowe Price offers three different types of accounts - Brokerage, Brokerage Advantage and Brokerage IRA.

First on the list, Brokerage account requires at least $2,500 minimum initial deposit. Some of the firm's strongest rivals have no minimum deposit, which makes it affordable for anyone to get started at investing. Ally Invest and TD Ameritrade are two examples of such firms.

T. Rowe Price account can be opened entirely online in about ten minutes with no confusion or hassle.

T. Rowe Price's premium brokerage account, called Brokerage Advantage, includes all services of the standard account, and provides some additional benefits such as no-minimum checkwriting, one-step exchange between T. Rowe Price and other fund families, a debit card, and others. This type of brokerage account is not available for IRAs. The minimum initial investment is $10,000.

The Brokerage IRA, the third type of account, is available as a Traditional IRA, ROTH IRA and Rollover IRA with a minimum deposit of $1,000. However, high investing cost and some IRA fees, which other big brokerage houses do not charge, do not allow T. Rowe Price to join a list of the best brokerages for IRAs in 2021.


Investment Options


In a T. Rowe Price individual brokerage account, investors can purchase stocks, ETFs, bonds, mutual funds (including non-T. Rowe Price funds), CDs, precious metals, and options.


Cost


Commissions at T. Rowe Price are extremely expensive! You are charged $19.95 per trade unless you make over 30 trades per year or have at least $100K in assets - then commissions drop to $9.95 per trade. Major brokerages offer lower commissions - $0 per trade - no matter the amount of trades you make or the value of your account.

T. Rowe Price has an annual account maintenance fee, which is $30 per year. It can be waived with some conditions. Most discount brokers don't charge account fees. Also, there is a $50 account termination fee at T. Rowe Price.

Mutual funds are $35 per transaction. This is reasonable. For example, Schwab charges $49.95 to buy a mutual funds, TD Ameritrade is at $49.99, and Ally Invest charges only $9.95 per trade.

When it comes to a short-term redemption fee, T. Rowe Price charges the greater of $50 or 1%, but not exceeding $250.


Trading Experience


The company's website is just OK. It’s not as good as at today's top brokerage firms. It’s reasonably user-friendly. Investors can make trades and manage accounts entirely online. However, if you take a quick look at the customer reviews on T. Rowe Price, you may notice numerous complaints about lack of website friendliness and ease-of-use.


T. Rowe Price vs Fidelity


iPhone and iPad Apps are offered at no charge. iPad app allows customers to check account balances, execute trades, review recent and pending activity, track performance with balance history charts. Also, a mobile optimized website is available to access an account on Android, and other Internet-enabled devices.


Customer Service


Customer service at T. Rowe Price is good. We have called several times with questions, and the reps appear to be professional and knowledgeable. For brokerage customers representatives are available via the phone on weekdays from 8:00 AM - 8:00 PM ET. Technical support via the phone is available 7 days a week from 7:00 AM - 10:00 PM on weekdays and 9:00 AM - 5:00 PM during weekends.

Customer can also ask questions via email and receive one-on-one guidance and investment advice at one of six local T. Rowe Price Investor Centers.


Trading Tools


Research and analysis tools are very basic and limited. Investors have access to the latest market news, up and downgrades, most actives, top sectors. Quotes are delayed 20 minutes.


T. Rowe Price vs Etrade


Executing trades online is very simple. There is a very short video on how to execute trades on the official T. Rowe Price website.

The broker offers a modest range of tools to help investors understand investments. Interactive tools on investment, retirement, tax, college and estate planning are available to meet individual goals of any investor. Some of the tools are pretty basic and useless, but we will outline some that we like:

  • Mutual Fund Compare Tool – this comprehensive tool is a nice way to shop for mutual funds. It allows investors to compare mutual fund fees, see the performance history of funds, risk, and holdings. Up to five mutual funds can be compared at a time. Investors can browse funds by fund family or selecting fund by its name or ticker symbol.
  • Mutual Fund Gateway Tool - an interactive tool that gives access to detailed information on hundreds of no-load mutual funds, allows searching for detailed fund information by fund family or Morningstar category.
  • Retirement Income Calculator – easy-to-use tool to figure how much investors may be able to spend each month and how long their savings will last.
  • FuturePath® - a retirement planning resource that helps investors understand their financial goals and develop a plan to achieve them. This sophisticated tool calculates a wide range of potential investment outcomes by simulating how they may perform under 1,000 market scenarios based on historical returns and for reinvested dividends and capital gains. Despite T. Rowe Price team's best efforts, there is no certainty that the analysis will accurately predict asset class return ranges going forward, so investors should not place too much reliance on the apparent precision of the results.


Premium Services


Besides different brokerage account types, T. Rowe Price offers three levels of premium services for high-net-worth customers ($100,000 and above in assets). All premium level customers receive discount pricing for online trades, waived account service fee or the annual maintenance fee, exclusive online benefits, complimentary semiannual portfolio summary report, direct access to premium service teams, advisory planing services (a $250 one-time fee value), complimentary memberships to premium investment research and analysis online resources, such as Morningstar.com (a $199/year value) and more.

Investment guidance and free TurboTax products during tax season are available to customers with over $250,000 in assets invested with T.Rowe Price. And those who invest over $1,000,000 in total assets receive waived advisory planning service fees, complimentary subscription to The Wall Street Journal Online (a $348/year value), and more.


T. Rowe Price Review Summary


Brokerage's online trading commissions are very high ($19.95 per trade for stocks), even a discount commission for qualified customers ($9.95) is well above the average industry price.

T. Rowe Price brokerage charges account fees (annual, maintenance, termination fees) that many other companies do not have today. When it comes to research and trading tools offered by T. Rowe Price, they are also very limited. Today, there are companies offering lower investing commissions, and providing top notch trading platforms with no charge.

T. Rowe Price is a decent investment company with a wide range of offerings and good service, but extremely expensive when it comes to commissions and fees.