Online investment brokerages that cater to self-directed investors include TD Ameritrade, E*TRADE, and Fidelity Investments. These three companies are among the best in their fields, and you may count on them to provide a wide selection of investing options. In addition to offering low pricing and fees, they also provide investors with a wealth of market data and educational resources. Retirement accounts are also available.
Comparing TD Ameritrade, E*TRADE, and Fidelity requires extensive research to determine the nature and depth of their differences. Let’s look at how much each service costs, what it offers, and how it is used.
Overview
Established in 1946, Fidelity Investments has amassed over 25 million investors and is another long-standing, well-respected brokerage. On the other hand, Fidelity has a vast range of its services. Unlike E*TRADE and TD Ameritrade, Fidelity offers worldwide stock investing and covers 20 different stock markets.
1982 marked the beginning of operations for E*TRADE, another full-service brokerage firm. As a result, you may trade a wide range of investment instruments like stocks and bonds, mutual funds, ETFs, and more. ETRADE does not allow trading in cryptocurrency; however, it does allow trading in the futures of two of the most important cryptocurrencies. Investors can also benefit from E*TRADE’s educational resources.
TD Ameritrade is a well-established brokerage firm that has been around for decades. There have been more than 175 TD Ameritrade brick-and-mortar shops since and before the beginning of internet trading. It’s been around since 1971, so it’s not new. Investors can attend live and virtual meetings at their brick-and-mortar locations.
In addition, they offer a wealth of educational resources and cutting-edge market research on their website. TD Ameritrade has about 12 million customer accounts and a daily trade volume of over 2.1 million. It provides a comprehensive array of investment products and services.
Expenses
TD Ameritrade, Fidelity Investments, and E*TRADE all charge no fees for stock and ETF trading. Individual retirement accounts at TD Ameritrade do not require a minimum deposit to be opened (IRA). Unless you deposit $200 monthly into your IRA, Fidelity mandates a minimum deposit of $2,500 in a brokerage account and an Individual Retirement Account (IRA).
To start a brokerage account with E*TRADE, you must deposit at least $500, but there is no such requirement for an IRA. To create a margin account, TD Ameritrade and E*TRADE mandate $2,000, whereas Fidelity requires $2,500 to open an account.
The most considerable margin rate is required by TD Ameritrade, which has a 9.5 percent margin rate requirement. E*TRADE has an 8.95 percent margin, while Fidelity has an 8.325 percent margin. Mutual fund trades cost $49.95 at Fidelity and TD Ameritrade and $19.95 at E*TRADE.
Keep in mind that prices are subject to change at any time.
Comparing Fees at TD Ameritrade, E*TRADE, and Fidelity:
| Item | TD Ameritrade | E*TRADE | Fidelity |
|---|---|---|---|
| Minimum deposit | $0 | $500 | $2,500 |
| Stock and ETF trades | $0 | $0 | $0 |
| Mutual fund trades-no load | $49.99 | $19.99 | $49.99 |
| Options base | $0 | $0 | $0 |
| Options per contract | $0.65 | $0.65 | $0.65 |
| Futures contract | $2.25 | $1.50 | N/A |
| Open margin account | $2,000 | $2,000 | $2,500 |
| Margin rate | 9.5% | 8.35% | 8.95% |
| Bitcoin futures | Testing trades in Bitcoin | $2.50 per contract | N/A |
| IRA – Fee to open an account | $0 | $500 | $2,500 |
| IRA – Transfer out partial | $0 | $0 | $0 |
| IRA – Transfer out full | $75 | $0 | $0 |
| Maintenance fee | $0 | $0 | $0 |
| Robo-advisor | $5,000 + 0.3% | $15 + 0.3% | $5,000 + 0.35% |
Software
E*TRADE may be accessed through desktop software, a web platform, and two mobile applications. It offers one of the most advanced web-based systems available. E*TRADE’s website has a lot to offer both new and seasoned investors, including educational resources, market data, and the opportunity to purchase, sell, and trade nearly every financial instrument now available.
E*TRADE and Power E*TRADE are E*TRADE’s smartphone applications. Aside from educational resources, the E*TRADE app provides access to basic trading instruments. In comparison, Power E*TRADE is more complicated and contains advanced capabilities like as charting instruments and risk evaluation.
Regarding online brokerage, the Fidelity platform, ActiveTrader Pro, is one of the best. It’s a popular choice among experienced traders. It is important to note that Fidelity restricts using ActiveTrader Pro products.
To be qualified to use it, a trader must execute 36 trades over the course of a calendar year. ActiveTrader Pro has a wide range of options and features for investors. Those who trade options will find it very useful. According to various studies, the platform has a higher than average popularity rating.
Think or Swim is TD Ameritrade’s trading platform. It is best suited for more expert traders because it offers many features that beginners and retail investors don’t require. Android customers complain that TD Ameritrade’s platform is a bit buggy, despite its high ranking among trading platforms.
TD Ameritrade’s Essential Portfolios and Robo advising services include the Think or Swim platform, which was built by traders for traders. To use Essential Portfolios, you must deposit $5,000 and pay a 0.30% management charge. For less experienced investors, the firm also offers a simpler app.
TD Ameritrade, Fidelity, and E*TRADE ranked among the top five brokerage systems in 2021. In terms of overall quality, TD Ameritrade comes out on top and is the greatest platform for newbies. E*TRADE has a superior web-based platform, whereas Fidelity is the best choice for the average investor.
Services
TD Ameritrade, E*TRADE, and Fidelity all have comparable strengths, as we’ve seen in our research. These are three of the best brokerages, each offering a complete range of services to its clients. It is important for investors to know how each brokerage is used.
Fees
Stock and ETF trading are free at all three brokerages. In the case of mutual funds, there is a significant discrepancy in the fees charged by TD Ameritrade and Fidelity, both charging a $49.95 commission fee. For $19.95, E*TRADE is the best option.
Mutual funds
Thousands of mutual funds are available for purchase through all three brokerages. TD Ameritrade has more than 13,000 mutual funds to choose from, and almost 4,000 of them are no-load and transaction fee-free. Both E*TRADE and Fidelity have 10,000 accessible to customers. E*TRADE has 4,200 no-load and transaction fee-free mutual funds, whereas Fidelity has 3,500. Fidelity offers a wide variety of its own products.
Investment vehicles
All three brokerages provide a wide range of investment vehicles. Except for cryptocurrencies, they provide a wide range of investing options. The only exceptions are TD Ameritrade and E*TRADE, which both provide futures contracts on bitcoin, but none of them offer cryptocurrencies.
Regarding financial instruments, TD Ameritrade has practically everything but precious metals and foreign equities on sale. In comparison to TD Ameritrade, E*TRADE’s services are not as extensive. No valuable metals, international stock, or currency exchange are offered (currencies).
Trading in international equities and securities on foreign markets is available through Fidelity. CDs, commercial paper, and U.S. treasuries are among the debt securities it offers. Neither currencies nor futures or options are available. Fidelity has a wide variety of IRAs to choose from.
Trading on the go
TD Ameritrade provides mobile apps for Windows 10, iPhone, Android, iPad, and Apple Watch that may be used for trading. Investors may keep up with the market action by watching CNBC and Reuters.
iPhone, Android tablets and phones, iPad, Apple Watch, Kindle Fire HD, Amazon Fire Phone, and Windows are all supported by E*TRADE’s mobile trading platform. Streaming CNBC is available for active traders.
You may trade on the go with Fidelity on your iPhone, iPad, Apple Watch, Windows Phone, or PC running Windows Phone or Windows. Also included in the package is live streaming of Bloomberg.
Learning resources
TD Ameritrade offers a wide variety of instructional resources for investors. In addition to that, it features a Robo-advisor, but you can only access it through TD Ameritrade Essential Portfolios. A $5,000 upfront investment is required.
Fidelity’s investors may learn a lot from the company’s educational resources. Although E*TRADE may have the fewest educational support articles available, the company nevertheless offers a wide range that is more than sufficient.
Final thoughts
When it comes to online brokerage services, TD Ameritrade, E*TRADE, and Fidelity all share many similarities, but there are also some key distinctions between the three.
- TDAmeritrade has excellent technology, a lot of useful instructional information, and a large range of investment vehicles to select from
- E*TRADE provides good pricing and customer service via phone and chat
- Investing in overseas markets is a strong suit for Fidelity
Your decision must be guided by the requirements you have as an investor.
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