TD Ameritrade vs. Fidelity: which is right for you?
TD Ameritrade and Fidelity are both self-directed brokerage platforms for investors who want to trade stocks, ETFs, mutual funds, options, and other mainstream investments.
This comparison examines the key differences in fees, minimums, investment options, trading platforms, technology, security, and investor fit.
Category | TD Ameritrade | Fidelity brokerage account |
|---|---|---|
Service type | Self-directed brokerage and active trading platform | Self-directed brokerage platform |
Main investments | Stocks, ETFs, options, mutual funds, bonds, futures and other financial products | Stocks, ETFs, options, mutual funds, bonds, CDs, precious metals, international investing, and related tools |
Online stock/ETF trades | $0 | $0 |
Options pricing | $0.65 per contract | $0 online options trades + $0.65 per contract |
Minimum amount | $0 | $0 |
Best for | Active traders, options/futures investors | Investors who want a brokerage platform with research, trading tools, and consultant access |
TD Ameritrade vs. Fidelity: Key services
TD Ameritrade was acquired by Charles Schwab in 2023. Its current Schwab-based experience supports futures and forex trading through thinkorswim for eligible clients. Fidelity’s brokerage service focuses on stocks, ETFs, options, mutual funds, bonds, CDs, crypto, and account research tools rather than futures trading.
Here’s a look at some of each firm’s key services.
TD Ameritrade:
- Core brokerage trading: Stocks, ETFs, options, mutual funds, bonds, and CDs.
- Advanced trading access: Futures, futures options, and forex through Schwab/thinkorswim, subject to eligibility and approval.
- Trading platform: Thinkorswim desktop, web, and mobile for charting, analysis, paper trading, and active trading.
Fidelity brokerage account:
- Self-directed trading: Fidelity’s brokerage account supports online and mobile trading through its website, mobile app, and trading tools.
- Core investment access: Fidelity lists domestic and international stocks, ETFs, options, mutual funds, bonds and CDs, precious metals, margin borrowing, international investing in 25 markets and 16 currencies, and extended-hours trading. Fidelity.
- Research and monitoring: Fidelity lists free, independent research from 20+ providers, along with alerts, watchlists, and stock analysis tools.
- Trading support: Fidelity provides 24/7 access to experienced investment and trading consultants.
TD Ameritrade vs. Fidelity: Fees
Basic online trading costs for stocks, ETFs, and options are similar. The difference is in futures, forex, broker assistance, transaction-fee mutual funds, fixed income, and other specialized trades.
Fee category | TD Ameritrade | Fidelity brokerage account |
|---|---|---|
Online US stock trades and ETFs | $0 commission | $0 commission |
Online options | $0+ $0.65 per contract | $0+ $0.65 per contract |
Broker-assisted stock/ETF trades | $25 service charge | Not offer |
Futures | $2.25 per contract for futures and futures options | Not offer |
Forex | $0 commission | Not offer |
Mutual funds | $0 on Schwab Mutual Fund OneSource funds; up to $74.95 per purchase for other mutual funds | No-transaction-fee |
TD Ameritrade vs Fidelity: Minimum account sizes
Both firms’ brokerage services are accessible without a standard opening balance requirement.
Minimum category | TD Ameritrade | Fidelity brokerage account |
|---|---|---|
Standard brokerage account | $0 | $0 |
Opening/maintenance fee | $0 | $0 |
As neither firm has a set minimum, deciding between the two becomes more about product approval, trading experience, and whether the investor needs advanced markets such as futures, forex, options, crypto, or fixed income.
TD Ameritrade vs. Fidelity: Pros and cons
Here is a look at the pros and cons of both TD Ameritrade and Fidelity to help you decide which is the right fit for you.
Pros of TD Ameritrade:
- thinkorswim access: Former TD Ameritrade users can continue to use thinkorswim through Schwab, including on desktop, web, and mobile platforms.
- Advanced trading range: Futures, futures options, and forex are disclosed alongside stocks, ETFs, options, bonds, and mutual funds.
- Branch and specialist access: Schwab provides branch access and 24/7 trading specialist support.
Cons of TD Ameritrade:
- Complex platform menu: Schwab Mobile and thinkorswim create multiple platform options that may be hard for users to understand.
- Specialized trading risk: Futures and forex involve substantial risk and are not suitable for all investors.
- Nonstandard fees: OTC equities, transaction-fee mutual funds, futures, forex, broker-assisted trades, and certain fixed-income transactions can create extra costs.
Pros of Fidelity:
- Research depth: Fidelity lists independent research from 20+ providers, along with alerts, watchlists, and stock analysis tools.
- Trading support: Clients have 24/7 access to experienced investment and trading consultants.
- No retail brokerage account fee or opening minimum: Fidelity discloses zero account minimums and zero account fees for retail brokerage accounts.
Cons of Fidelity:
- Additional transaction costs: Options contract fees, regulatory charges, foreign trading costs, and currency exchange fees may apply.
- No futures trading: Fidelity states that it does not offer futures trading.
- Tool depth can add complexity: Investors who only need basic buy-and-hold trading may not use many of the platform’s trading and research features.
- Crypto is a separate risk area: Fidelity Crypto is available, but crypto investing carries distinct risks and is not the same as standard brokerage investing.
TD Ameritrade vs. Fidelity: Technology and security
TD Ameritrade’s thinkorswim is the main trading platform. Thinkorswim is a customizable platform for charting, analysis, strategy testing, paper trading, and active trading. It also supports trading in stocks, ETFs, options, futures, and forex for eligible users.
Fidelity’s technology experience is built around Fidelity Mobile, research tools, alerts, watch lists, and trading support. Users can manage portfolios and watch lists, research, and trade from the mobile app.
On security, Schwab discloses encryption, risk-based security technology, automated alerts, identity verification, monitoring, and identity checks before sensitive information is discussed. It also provides SIPC protection through Charles Schwab & Co., Inc. and FDIC insurance for eligible bank deposits or bank sweep balances.
Fidelity offers encryption, firewalls, secure email, proactive 24/7 system surveillance, multi-factor authentication, money transfer lock, security text alerts, and voice biometrics. Fidelity also participates in FDIC and SIPC asset protection programs.
Final verdict: TD Ameritrade vs Fidelity
TD Ameritrade and Fidelity have many similarities as self-directed brokerage platforms. Both cover core online investing needs. The main differences are product access, fee details, and platform focus.
TD Ameritrade’s current Schwab-based experience includes access to thinkorswim, futures, futures options, and forex for eligible clients, with separate pricing for advanced trading.
Fidelity’s brokerage service focuses on stocks, ETFs, options, mutual funds, fixed income, fractional shares, crypto, research tools, and Fidelity’s own web, mobile, and trading platforms.
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