Online brokerage services have existed for over 20 years. Trading investments today has never been cheaper. So while the race towards cheap trades (in some cases free) is happening, other functionality is becoming more important when selecting a stock broker.
For this review, I compare TD Ameritrade and E*TRADE. Which one is better depends on your needs? So let's examine the major features first.
We've determined with online brokerages the most critical feature customers care about is the
cost per trade. The second most important feature is the minimum deposit, and the last is if the broker
offers mutual funds. Let's look at how TD Ameritrade and E*TRADE
stack up against each other on these points.
To start, we will consider the minimum investment required for both applications. In other words, how much does one need to invest to use the service? Out of the two, TD Ameritrade minimum investment of $0 is smaller than the deposit of required by E*TRADE.
Next I'll consider cost per trade for both brokers.
Both TD Ameritrade and E*TRADE cost the same at $6.95/trade and are equal in price.
Both TD Ameritrade and E*TRADE offer mutual funds. So this feature isn't a clear difference between the stock brokers.
|Review||TD Ameritrade Review||E*TRADE Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Amount of Deals|
|Promotions||Trade Free for 60 Days + Get Up to $600 Cash||Trade FREE for 60 Days and get up to $2,500|
|Stock Trades||$6.95/trade||$6.95/trade ($4.95/trade for 30+ trades/quarter)|
|Options Trades||$6.95/trade + $0.75/contract||$6.95/trade + $0.75/contract ($4.95 + $0.50/contract for 30+ trades/quarter)|
|Investment Types||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX, Futures||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX, Futures|
|Access||Website, iOS App, Apple Watch, Android App||Website, iOS App, Apple Watch, Android App|
|Broker Assisted Trade|
|No Fee ETFs|
|Sign Up||Sign Up|
About TD Ameritrade
Get complete access to all kinds of investment options with relatively low pricing from TD Ameritrade. One of its biggest advantages is it requires no minimum deposit to open an account. This is the closest we can find to a perfect online broker.
E*TRADE, the grandaddy of online discount brokers, is still a good choice for active investors. Its platforms are easy to use, customer service is responsive, and trades execute quickly. However, there are now many less expensive rivals on the market.