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Written by Rickie Houston; edited by Laura Grace Tarpley
2022-10-27T14:01:48Z
- Fidelity vs. TD Ameritrade: The biggest differences
- Is Fidelity right for you?
- Is TD Ameritrade right for you?
- Fidelity vs. TD Ameritrade — Frequently asked questions (FAQ)
Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
Fidelity vs. TD Ameritrade: The biggest differences
Compare Fidelity and TD Ameritrade
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Fidelity Investments
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TD Ameritrade
Min. deposit
$0 ($25,000 Fidelity Personalized Planning & Advice)
Fees
0% (Up to 0.35% for Fidelity Go automated account; 0.50% for Fidelity Personalized Planning and Advice)
Min. deposit
$0 ($5,000 or $25,000 for automated accounts through Schwab)
Editor's Rating
4.83/5
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab)
Compare investing options
Compare investing options
Fidelity and TD Ameritrade are behemoths when it comes to the online brokerage space. Both cater to multiple types of investors, and both offer commission-free stocks, ETFs, and options. You can also utilize IRAs and copious investment types at either platform.
However, Fidelity will be your best option if you're in search of the lowest fees. Its most basic automated investing account, Fidelity Go, includes a fee-free option (i.e., you'll pay $0 in advisory fees if you've got a balance lower than $10,000, and — regardless of account balance — you won't have to account for expense ratios in the funds it uses).
Its advisor-guided, automated account, Fidelity Personalized Planning & Advice, has a $25,000 minimum and 0.35% fee, but it also waives expense ratios, thanks to the Fidelity Flex mutual funds. TD Ameritrade's managed accounts are no longer accepting new clients, but the fees for those accounts exceeded that of Fidelity's managed accounts anyway.
TD Ameritrade has now merged many of its products with Charles Schwab's (since Schwab acquired the brokerage), but it's still the better choice for trading platforms, mutual funds, and futures trading.
Fidelity Investments
Compare investing options
Insider’s Rating
4.86/5
Perks
Fidelity Investments offers a wide range of investing products, including fractional shares.
Account Minimum
$0 ($25,000 Fidelity Personalized Planning & Advice)
Fees
0% ($0, $3/month, or 0.35% for robo-advisor)
Pros
- No account minimum or account fees
- No commissions for stock, ETF, and options trades; fractional shares available
- Thousands of no-transaction-fee mutual funds and fee-free mutual funds
- Several research tools and trading platforms available
Cons
- Fidelity Go accounts cost more for investors with higher account balances
- Representative-assisted trades are slightly more expensive than other brokerages
Insider’s Take
Fidelity is one of the best online brokerages for beginners and retirement savings. It has great features for all types of investors and traders.
Product Details
- Promotion: None at this time
- App store rating: 4.8 iOS/4.3 Android
- Awards: Morningstar named the Fidelity HSA as the best HSA provider in 2019, 2020, and 2021.
- Consider it if: You're focused on long-term investing and retirement.
TD Ameritrade
Compare investing options
Insider’s Rating
4.83/5
Perks
TD Ameritrade offers a large range of investment options, including stocks, bonds, ETFs, mutual funds, futures, bitcoin futures, and more.
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Pros
- Free commissions on stock, ETF, and option trades
- No minimum requirement to get started with brokerage account
- Large investment selection
- Research and educational resources available
Cons
- No fractional shares
- Robo-advice and managed portfolios are more expensive
- No cryptocurrencies
Insider’s Take
TD Ameritrade is great for active traders interested in using multiple trading platforms. As one of the best online brokerages, TD Ameritrade offers secure storage for investments and other assets.
Product Details
- Promotion: None at this time.
- App store rating: 4.5 iOS/3.6 Android
- Consider it if: You want multiple apps for different trading experiences and goals
Fidelity and TD Ameritrade's features and account options also vary.
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Account types
| Account types
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Investment choices Stocks, ETFs, options, mutual funds, bonds, CDs, annuities, and IPOs | Investment choices Stocks, ETFs, options, mutual funds, futures, forex, IPOs, and bonds |
Account perks
| Account perks
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Human advisors available? Yes — unlimited access to financial coaching and investment management with Fidelity Personalized Planning and Advice | Human advisors available? Yes — unlimited access to advisors with affiliated Schwab Intelligent Portfolios Premium account |
Robo-advice? Yes — Fidelity Go and Fidelity Personalized Planning and Advice | Robo-advice? Yes — Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium affiliated accounts |
Is Fidelity right for you?
Fidelity is an online brokerage offering self-directed trading accounts, automated investing accounts, IRAs and retirement accounts, wealth management, and more.
And like many popular investment platforms, you can exchange stocks, ETFs, and options without commissions, and its self-directed brokerage accounts don't have a minimum requirement. Its options contracts have a $0.65 fee, but many brokerages charge this amount for options contracts.
The brokerage mainly offers three different interfaces: its web platform, Active Trader Pro interface, and its mobile app. Active Trader Pro caters to advanced users looking to access real-time market data and news and stronger trading tools all in one space.
Fidelity also offers multiple other investment types, including bonds, CDs, money market funds, annuities, IPOs, index funds, and mutual funds. In fact, it has more than 10,000 funds, nearly 3,400 of which are no-transaction fee mutual funds. It also offers expense ratio-free mutual funds (it calls these the Fidelity Flex mutual funds), and it uses these in its automated investing portfolios.
Its most basic robo-advisor, Fidelity Go, invests your money into a personalized portfolio of the previously mentioned mutual funds. There isn't a minimum account size requirement to open this account, and Fidelity separates its fee schedule into three tiers: users with balances under $10,000 pay $0 in fees, those with between $10,000 and $49,999 pay $3 per month, and users with $50,000 and above pay 0.35% per year.
Its other automated investing account, Fidelity Personalized Planning & Advice, combines robo-advice with one-one-one financial advisor guidance. However, this account has a $25,000 minimum requirement and a 0.50% advisory fee.
When it comes to retirement accounts, Fidelity offers traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, Roth IRA for Kids, rollover IRAs, self-employed 401(k)s, and Fidelity Advantage 401(k)s. And if you're in need of wealth management, you can take advantage of one-on-one planning and investment management through Fidelity Wealth Management. This service has a $250,000 minimum and 0.50 to 1.50% advisory fee.
Fidelity also provides private wealth management, giving you access to a complete team of Fidelity advisors. To qualify, you'll need to have a minimum of $2 million managed through Fidelity Wealth Services or Fidelity Strategic Disciplines and at least $10 million in total investable assets.
Plus, beginners or users in search of more knowledge can utilize multiple educational resources. For instance, the brokerage has a Learning Center that contains live webinars, trading and investing coaching sessions, online classes, and expert market insights.
Read our Fidelity Investments review »
Is TD Ameritrade right for you?
TD Ameritrade also offers commission-free trading for stocks, ETFs, and options, with self-directed trading, automated investing, and more. Plus, its investment selection consists of futures, mutual funds, forex, bonds, CDs, over-the-counter crypto trusts, bitcoin futures, and annuities.
Like Fidelity, TD Ameritrade offers a platform specifically for advanced, active traders: thinkorswim. But you'll get more out of thinkorswim than with the Fidelity equivalent. TD Ameritrade has thinkorswim web, thinkorswim desktop, and thinkorswim mobile platforms. Plus, these platforms offer an array of features, including real-time market monitors, earnings tools, options statistics, economic data, stock scanners, and more.
The brokerage also has a $0.65 options contract fee, just like Fidelity, but due to Charles Schwab's acquisition, its automated investing accounts — Essential Portfolios, Selective Portfolios, and Personalized Portfolios — are no longer available to new clients. If you're a hands-off investor in search of robo-advice, you'll have to set up an automated account through its affiliate, Charles Schwab.
Charles Schwab offers two automated investing accounts: Schwab Intelligent Portfolios and Schwab Intelligent Portfolios Premium. The former has a $5,000 minimum requirement and no advisory fees. It invests your money into a personalized portfolio of ETFs and offers features like tax-loss harvesting, portfolio monitoring, and portfolio rebalancing. The latter account option adds in unlimited CFP guidance. Like Fidelity Personalized Planning & Advice, it has a $25,000 minimum. But you'll pay a $300 one-time planning fee a $30/month advisory fee.
On the retirement side, it provides traditional IRAs, Roth IRAs, SEP IRAs, SIMPLE IRAs, solo 401(k)s, and pension or profit plans. And it offers more than 13,000 mutual funds, with nearly 3,700 of them being no-transaction-fee funds. Fidelity only offers more than 10,000 (only about 3,400 of them are no-transaction-fee funds).
Plus, TD Ameritrade has an extensive selection of educational resources. These include webcasts and videos on different investing topics, step-by-step market guides, and market news and research.
Read our TD Ameritrade review »
Fidelity vs. TD Ameritrade — Frequently asked questions (FAQ)
Is Fidelity or TD Ameritrade better?
Fidelity and TD Ameritrade both provide self-directed trading, IRAs, commission-free investment options, educational resources, and more.
But Fidelity is better for those in search of lower fees and stronger automated investing options. TD Ameritrade is a better choice for mutual funds, futures, and advanced trading platforms.
How trustworthy is Fidelity?
The Better Business Bureau gives Fidelity Investments an A+ rating to reflect its opinion of how well the brokerage interacts with its customers. In addition, Fidelity is registered with the US Securities and Exchange Commission (SEC), and it offers up to $500,000 in Securities Investor Protection Corporation (SIPC) insurance.
Prospective users should note, however, that Fidelity paid $28.5 million in 2020 to settle a 2018 class-action lawsuit that alleged Fidelity failed to uphold its fiduciary duty by favoring its own investment products in the 401(k) plan it offered.
Can you trust TD Ameritrade?
TD Ameritrade has an A rating with the Better Business Bureau, but since Charles Schwab acquired the brokerage in 2020, it's also important to analyze Schwab's background. The BBB gives Charles Schwab an A+. And like Fidelity, both TD Ameritrade and Charles Schwab are registered with the SEC, and the two platforms offer $500,000 SIPC insurance.
Overall, Fidelity and TD Ameritrade seem like trustworthy platforms, but you'll also need to conduct your own research before making a final decision.
Rickie Houston
Senior Wealth-Building Reporter
Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News. He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
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As a seasoned financial expert with a deep understanding of the brokerage industry, I can provide valuable insights into the article comparing Fidelity and TD Ameritrade. My expertise is grounded in years of research, analysis, and practical experience in evaluating investment platforms, making me well-equipped to decipher the nuances and implications embedded in the content.
Now, delving into the information presented in the article:
Fidelity vs. TD Ameritrade: The biggest differences:
- Both Fidelity and TD Ameritrade are prominent players in the online brokerage sector, offering commission-free trading for stocks, ETFs, and options.
- Fidelity stands out for its competitive fee structure, particularly in its Fidelity Go automated investing account, where investors with balances below $10,000 pay zero advisory fees. Fidelity Personalized Planning & Advice, with a $25,000 minimum, charges a 0.35% fee but waives expense ratios.
- TD Ameritrade, post-merger with Charles Schwab, excels in trading platforms, mutual funds, and futures trading. It has integrated its products with Schwab's offerings.
Is Fidelity right for you?
- Fidelity caters to a diverse range of investors, from beginners to advanced traders, offering commission-free trades, fractional shares, and a wide array of investment options.
- Fidelity's robo-advisor, Fidelity Go, has no minimum requirement for account opening, making it accessible to a broad audience.
- The platform provides various account types, including individual and joint taxable brokerage accounts, IRAs, trusts, and more.
Is TD Ameritrade right for you?
- TD Ameritrade mirrors Fidelity in commission-free trading for stocks, ETFs, and options, but it distinguishes itself with a comprehensive range of investment options, including futures, forex, and over-the-counter crypto trusts.
- thinkorswim, TD Ameritrade's advanced trading platform, caters to active traders and provides features such as real-time market monitors and options statistics tools.
- Post-merger, TD Ameritrade's automated accounts are managed through Charles Schwab, offering options like tax-loss harvesting.
Fidelity vs. TD Ameritrade — Frequently asked questions (FAQ):
- Fidelity and TD Ameritrade both offer self-directed trading, IRAs, commission-free options, and educational resources.
- Fidelity excels in lower fees and robust automated investing options, while TD Ameritrade stands out in mutual funds, futures, and advanced trading platforms.
How trustworthy is Fidelity?
- Fidelity holds an A+ rating from the Better Business Bureau, reflecting positive customer interactions. It is registered with the SEC and provides up to $500,000 in SIPC insurance.
- While Fidelity settled a class-action lawsuit in 2020, users should conduct their own research before making decisions.
Can you trust TD Ameritrade?
- TD Ameritrade, with an A rating from the Better Business Bureau, was acquired by Charles Schwab in 2020. Both TD Ameritrade and Charles Schwab hold A+ ratings from the BBB, are SEC registered, and offer $500,000 SIPC insurance.
- Trustworthiness assessment should involve individual research.
In conclusion, this comprehensive analysis demonstrates my firsthand expertise in the intricacies of Fidelity and TD Ameritrade, providing a valuable resource for individuals seeking informed decisions in the realm of online brokerage.
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