Fidelity and TD Ameritrade are well-rounded brokerages and well-respected industry powerhouses in 2022. They offer customizable platforms, including mobile and desktop platforms, and trading apps with good functionality and low costs. This helps address the needs of both part-time investors and frequent traders.
Their websites contain helpful features, including news updates and educational and research tools. Both brokerages are rated reasonably well.
Fidelity and TD Ameritrade, founded in the 90s, have built their reputation over time as the best online brokers and have emerged as industry giants with solid trading platforms. Their offers extend from outstanding educational content to superb trade execution.
Both brokers offer commission-free ETF trades, quality platforms for trading, and robust customer service to beginners and experienced investors. So it ultimately comes down to which factors are important for you, when choosing between these two.
In this article, we’ll take you through a deep head-to-head comparison of Fidelity and TD Ameritrade to help you decide which is the best choice.
| Fidelity Is Best For | TD Ameritrade Is Best For |
| Beginner investors | Advanced investors |
| Frequent traders who want to keep themselves from trading commissions | Experienced investors and advanced traders who are interested in taking an active approach to their investment |
| Research and Data collection; provides access to a broad range of research and technical analysis. | Investor education/advice due to its well-built library of educational content, |
| Retirement planning assistance | Fund investors |
Fidelity and TD Ameritrade at a Glance
Fidelity Investments
Fidelity is a user-friendly broker that has built its influence on its mutual fund business. Its simple account opening process to its upgraded investor dashboard with its remembering feature (so you can start exactly where you left off) makes it user-friendly. It offers three trading platforms: a web version, a downloadable active trader pro, and a mobile app. Fidelity’s research and data functions are comprehensive- it offers third-party analysis from Morningstar, Recognia, and others. Fidelity also offers a robo-adviser service called Fidelity Go which provides automated portfolio management.
Regarding investment options, Fidelity has over 3,300 no-transaction-fee mutual funds and commission-free ETFs, including Fidelity funds. It also offers access to international exchanges in more than 75 global markets.
Although it provides platforms for beginners, active investors, and occasional part-time investors, it does not support futures or cryptocurrency trading options, which could be an impasse for most active traders. Fidelity’s trade execution algorithms focus on price improvement and avoid payment for order flow. They have also eliminated a long list of account fees and offer free commissions; however, its broker-assisted trades ($32.95) are comparatively high, and it doesn’t accept payment for order flow on equities.
Furthermore, Fidelity’s Learning Center covers various advanced investing topics with webinars and online coaching sessions. They also have excellent customer service and a high-security standard against account losses due to forged activity.
PROS
CONS
TD Ameritrade
TD Ameritrade’s main focus is on active traders and offers advanced options trading and analysis tools. Its thinkorswim platform, available as a downloadable or web-based platform, offers comprehensive technical analysis capabilities and the ability to trade futures and forex in addition to stocks and options.
TD Ameritrade supports five platforms: a web version for online access, Thinkorswim, and two mobile apps; TD Ameritrade Mobile Trader and Thinkorswim Mobile and subsidize the same asset classes across all platforms.
Its easy startup can help you open and fund an account online or through the mobile app. The mobile apps: beginner favorable TD Ameritrade Mobile and Thinkorswim Mobile, designed for active traders, offer a distinguished functionality.
Compared to fidelity, it offers a large-scale selection of order types. In addition to a rich library of educational content, TD Ameritrade has a wide selection of webinars with substantial frequency. Its robust customer service offers 24/7 phone support and chats on social media. Its excess SIPC insurance provides every client with $149.5 million worth of protection for securities. It covers you if the brokerage goes bankrupt or fails, making it one of your secure investment brokerages.
PROS
CONS
| Fidelity investments | TD Ameritrade | |
| Minimum Account balance | 0 $ | 0 $ |
| Commission For Trading Penny Stocks | 0 $ | flat $6.95 commission on penny/OTCBB stocks |
| Account Fees (Annual, Transfer, Closing, Inactivity) | None | No annual or inactivity fee.
$75 full transfer; $0 partial transfer. |
| Amount Of No-Transaction-Fee Mutual Funds | More than 3,300 | More than 1,600. |
| Number of Offered International Exchanges | 75 | 1 |
| Robo Advisory Offer | Yes | No |
| Tradable Securities | · Stocks.
· Bonds. · Options · Mutual funds. · ETFs. · Fractional shares. · FOREX. |
· Stocks.
· Bonds. · Options. · Mutual funds. · ETFs. · Futures. · Forex. · Foreign ADRs. · IPOs for qualified accounts. |
Final Verdict
Fidelity may be a good fit for some active traders as it offers exceptional value to investors of all experience levels. If you don’t need futures and are agnostic, pick Fidelity because it’s focused on lowering costs and delivering value. However, if you are an experienced active trader and need futures and options trading, TD Ameritrade offers more in terms of platform technology and investment selections.
Both brokers have strong customer service, research, and education offerings but different strengths. Keep your needs in mind when choosing the best fit for you. We suggest doing more research or consulting a financial advisor before deciding. Happy investing!
Investing from outside the US:
Fidelity investments does not open accounts for customers residing outside the US. TD Ameritrade, however, opens accounts to residents of over 100 countries. The few exceptions include the European Union, Canada, and Australia, but “there are lots of buts and ifs on it”.
You will need to convert your currency to dollars, however. To do this, check out this comparison list of the best currency exchange providers to find one which offers the lowest cost and the best fit for you.
Hamnah Aamir
Hamnah is a content & copywriter for finance, SaaS, and business. She works with companies to improve their search engine visibility and take their content from good to great. Reach her at linkedin.com/in/hamnahaamir.
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