TD Ameritrade rating

TD Ameritrade

Capital One Investing rating

Capital One Investing

Compare Capital One Investing vs TD Ameritrade


Capital One Investing Sharebuilder vs TD Ameritrade - which is better broker? Compare IRA/Roth accounts, online trading fees, stock trading fees.



Outline


TD Ameritrade and Capital One Investing are two very different brokerage firms. With different commission schedules and trading technology, these brokers definitely cater to different types of investors. Let's run the two firms through their paces and see which is better - TD Ameritrade or Capital One Investing?


Trading Tools


TD Ameritrade has a user-friendly and well-designed website. At the bottom of the browser is a useful trade bar called SnapTicket. It provides quick data on any ticker symbol entered. A small graph is also displayed on the bar. Advanced orders can be placed on SnapTicket for stocks, options, and ETF's. Beyond the website, TD Ameritrade clients can buy and sell securities on Trade Architect, a user-friendly web-based platform, or thinkorswim, an advanced desktop system. Both platforms are free for all customers.

Unfortunately, Capital One Investing does not have an advanced platform. There is a trade bar at the bottom of the browser, but it's not as advanced as SnapTicket. Clicking on 'Trade' on Capital One's bar simply produces a web page where the order is completed. The website is easy to navigate, but it has less material than TD Ameritrade's site. A chart can be displayed in several different styles, including candlesticks and % change fill. Unfortunately, the website has no video financial news, which both Trade Architect and thinkorswim do provide.

The Capital One Investing mobile app doesn't have bill pay, mobile check deposit, live streaming of financial news, or technical studies. TD Ameritrade offers all of the above, along with a platform for Apple Watch.

TD Ameritrade wins the first category.


Fees and Commissions


Traders at Capital One Investing pay only $6.95 for stock and ETF transactions. TD Ameritrade lowered its rates and now charges the same $6.95. Option contracts at Capital One are an extra 75¢. TD Ameritrade also charges 75¢.

Both firms offer live representatives over the phone to help customers complete a trade. Investors who use this service are charged $19.95 at Capital One Investing. TD Ameritrade clients pay a much higher $44.99.

There are no fees for securities accounts at either firm. Investors will not incur any inactivity, annual, or setup fees. An account can be opened at either firm with no deposit. Both brokers offer margin accounts.

Overall, it is a tie.


Mutual and Exchange-traded Funds


TD Ameritrade customers can buy and sell over 11,000 mutual funds. Roughly 2,000 of these funds come with no load and no transaction fee. The broker charges a very steep $49.99 for transaction-fee funds. Unfortunately, it's charged on both the buy and sell sides. A short-term redemption fee of $49.99 is assessed if an NTF fund is sold in less than 6 months.

Capital One Investing has far fewer mutual funds. The firm has just over 1,000 funds for sale on its website. Approximately 400 carry no load and no transaction fee. Investors will pay $19.95 for non-NTF funds. This charge is applied to all transactions. Furthermore, the broker charges $49.95 if an NTF mutual fund is sold in less than 3 months after purchase.

ETF traders will find 101 exchange-traded products at TD Ameritrade that are free to trade. These funds come with expense ratios well below 1.00%, which makes them an even better value. Capital One Investing disappoints here, and does not have an offering of commission-free ETF's.

TD Ameritrade wins here.


Capital One Investing vs TD Ameritrade


Customer Service


Capital One Investing provides phone support Monday through Friday from 8 am to 9 pm, EST. Some Capital One Bank branches have a securities professional available to the group's brokerage clients if they need investment advice. The service does cost extra. It's also available over the phone.

Customers of TD Ameritrade can reach a representative 24 hours a day, 7 days a week over the phone. During some business hours, agents are available who speak Cantonese, Mandarin, and Spanish. There are more than 100 branch offices throughout the U.S. for customers who prefer in-person service.

This category goes to TD Ameritrade for its 24/7 service.


Promotions


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

Capital One Investing: Get $50 when you open new non-IRA account at Capital One Investing.


Cash Management Options


TD Ameritrade clients can add checks and a Visa debit card to a brokerage account free of charge. Cash balances are swept into a maximum of two FDIC-insured banks, which provide twice the standard $250,000 insurance. Even better, the broker refunds all ATM charges.

Capital One Investing does not offer checks or a debit card, which is rather odd given that it is a subsidiary of a large bank. A trading account's cash position is either a money market mutual fund or an FDIC-insured bank account.

Another failure from Capital One.


Capital One Sharebuilder vs TD Ameritrade: Summary


TD Ameritrade (read review) took four categories, there was one tie, and Capital One Investing (read review) failed to succeeded even one time. TD Ameritrade wins by a wide margin. Despite the results, Capital One Investing would be a good choice for non-active equity traders who don't need advanced trading or research tools.





Updated on 7/5/2017.




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