When it comes to choosing a reliable and affordable investment platform, TD Ameritrade and TD Direct Investing are both solid choices.
However, there are some key differences between the two that you should be aware of before making a decision.
TD Ameritrade is best suited for those who are looking for a more hands-off approach to investing. With this platform, you can easily set up automatic deposits and withdrawals, as well as automated portfolio rebalancing.
TD Direct Investing, on the other hand, is best suited for investors who want more control over their portfolios. With this platform, you can access real-time market data and execute trades yourself.
Both platforms offer a variety of features and benefits, so it ultimately comes down to personal preference. For an even higher quality service, we would also recommend Interactive Brokers, as they offer world-class services at reasonable prices.
- Lowest and most transparent commissions
- Large number of tradable security types
- Robust suite of research tools
- Low margin rates, from 0.75% to 1.59%
- Access to 40,000+ funds worldwide & 7,700+ funds with no transaction fees
Whichever platform you choose, you can be confident that you are making a wise investment decision.
Disclaimer
The equity investments are subject to market risks and may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor. So please invest at your own risk.
In this article, we will compare and contrast TD Ameritrade vs. TD Direct Investing, allowing you to make the most informed decision possible.
Table of Contents
TD Ameritrade Vs. TD Direct Investing At a Glance
TD Ameritrade Advantages
- Wide variety of products and services, including stocks, bonds, ETFs, options, mutual funds, futures, and forex
- Advanced tools and resources to help you make informed investment decisions
- Easy-to-use online platform with streaming quotes and customizable charts to view your data conveniently
- TD Ameritrade Mobile App for on-the-go trading
TD Ameritrade Disadvantages:
- High trading costs compared to other online brokers
- Commission-free ETFs are limited to Vanguard and iShares products
TD Direct Investing Advantages
- Very low trading fees, with no commissions on Canadian stocks or US stocks priced below $1.50
- Access to a wide selection of mutual funds, GICs, stocks, bonds, and options
- Low account minimums for certain products
TD Direct Investing Disadvantages
- No streaming quotes or customizable charts
- Limited customer service options compared to TD Ameritrade
Winner: TD Ameritrade is the ideal choice if you’re looking for a comprehensive online brokerage with a variety of products and services, advanced tools and resources, and an easy-to-use platform.
Invest now at Interactive Brokers
More About TD Ameritrade
TD Ameritrade is an American online broker based in Omaha, Nebraska. The company provides services for individuals and institutional investors in investing, trading, related banking products, and services.
TD Ameritrade is a member of the Securities Investor Protection Corporation (SIPC), which protects customer assets in the event of broker failure. The company is also a member of the Financial Industry Regulatory Authority (FINRA).
TD Ameritrade offers a variety of account types, including individual accounts, IRAs, and 401(k) rollover accounts. The company also offers an extensive selection of investment products, including stocks, bonds, mutual funds, ETFs, and options.
In addition, TD Ameritrade provides research and analysis tools, streaming news, and 24/7 customer support.
More About TD Direct Investing
TD Direct Investing was founded in 1998 as TD Waterhouse Discount Brokerage. In 2000, it was renamed TD Waterhouse Investor Services.
In 2003, it was again renamed, this time to TD Waterhouse Discount Brokerage.
In 2005, TD Bank acquired Canadian discount brokerage firm e-trade Canada, which was then merged into TDDI.
In 2011, the company was renamed TD Direct Investing to better reflect its focus on providing self-directed investors with access to a wide range of investment products and tools.
TD Direct Investing provides self-directed investors with access to a wide range of investment products and tools, including online and mobile trading platforms, GuruResearch reports, real-time quotes, live market news, and more.
It also offers a variety of research and education resources, such as webinars, seminars, and an extensive library of investing articles and videos. Account types include brokerage accounts, registered accounts (RRSPs, TFSAs, RESPs), and margin accounts.
Accounts can be opened in CAD or USD.
Try The #1 Trading Platform in Canada
What’s the Difference Between Them?
Costs
When it comes to finding a broker, one of the most important considerations is cost. After all, no one wants to overpay for trades or account fees.
In that respect, TD Ameritrade is one of the more expensive brokers, with higher fees for both trades and account maintenance.
However, TD Direct Investing offers much lower costs, making it a better choice for those who are looking to save money.
In addition, TD Direct Investing also offers some of the lowest fees for account maintenance and inactivity.
The verdict is in, and TD Direct Investing has the edge when it comes to cost. With low fees and commissions, as well as free real-time quotes and market analysis, TD Direct Investing provides value that is hard to beat.
Commission-free ETFs
TD Ameritrade and TD Direct Investing both offer investors a wide selection of commission-free ETFs.
TD Ameritrade offers more than 300 Vanguard and iShares commission-free ETFs, while TD Direct Investing has over 100 commission-free ETFs from various providers.
Both firms offer a variety of commission-free ETFs that cover a broad range of asset classes, including US and international equities, fixed income, and commodities.
Verdict: For investors looking to get the most bang for their buck, TD Ameritrade is the clear choice when it comes to commission-free ETFs.
Research and Education
For those who are just starting out or need help with making informed investment decisions, research and education can be great resources.
TD Ameritrade offers more research tools and educational resources than TD Direct Investing, including live-streaming webinars, seminars, video tutorials, and an extensive library of investing articles.
TD Direct Investing also offers research tools; however, it is worth bearing in mind that TD Direct Investing is more limited in its educational resources than some of its competitors.
If you are new to investing, or if you want to brush up on your knowledge, you may find yourself better served by another online broker.
That said, TD Direct Investing does offer some useful research tools, such as GuruResearch reports and real-time quotes.
Verdict: TD Ameritrade has the edge when it comes to research and education. With a wide variety of tools and resources to choose from, TD Ameritrade is the ideal choice for investors who need help with making informed investment decisions.
Products and Services
When choosing a brokerage, it’s important to consider the range of products and services on offer. This is especially true if you’re an active trader who likes to have access to a wide variety of investment products.
In this respect, TD Ameritrade certainly has the edge over its competitors.
With a comprehensive selection of stocks, bonds, ETFs, options, mutual funds, futures, and forex, TD Ameritrade can meet the needs of even the most active traders.
In contrast, TD Direct Investing only offers access to certain types of investments. While it does offer access to mutual funds and GICs as well as stocks, bonds, and options, it does not offer access to futures or forex.
Verdict: For investors looking for the greatest possible choice when it comes to products and services, TD Ameritrade is the clear winner.
Tools and Resources
When it comes to investing, research is key. You want to be as informed as possible before making any decisions in order to maximize your chances of success. That’s where TD Ameritrade comes in.
They provide advanced tools and resources to help you make informed investment decisions.
This includes streaming quotes and customizable charts, which can give you a real-time snapshot of how the market is performing. With this information at your fingertips, you’ll be able to make smarter, more informed decisions about your investments.
TD Direct Investing, on the other hand, does not offer these same features. While they may have some useful information, it’s not as comprehensive or user-friendly as what TD Ameritrade has to offer.
As a result, you may not be as well-informed about your investment decisions, and thus may be more likely to experience losses.
Verdict: TD Ameritrade is the better choice for those who want to be well-informed before making any investment decisions. With their advanced tools and resources, you’ll have everything you need to make smart, profitable choices for your portfolio.
Mobile App:
For investors who want to be able to trade on the go, having a mobile app is essential.
TD Ameritrade offers a comprehensive mobile app that allows users to trade stocks, options, and ETFs with ease.
The app also provides access to real-time quotes, charts, and market news. This makes it easy to stay on top of your trades while you’re on the go.
In contrast, TD Direct Investing does not have a mobile app, meaning that investors will need to use a desktop or laptop computer if they want to trade. This can make it difficult to trade when you’re away from home or in a different time zone.
Verdict: TD Ameritrade is the clear winner in terms of mobile trading capabilities.
Website
In today’s competitive world, having a well-designed website is essential for any business. For brokers, a user-friendly website is especially important, as it can make the difference between winning and losing a client.
In this respect, TD Ameritrade has a significant advantage over its competitors. The TD Ameritrade website is easy to navigate and provides users with quick access to all the features and tools they need.
This useability is in stark contrast to the TD Direct Investing website, which can be difficult to manage and lacks many of the advanced features offered by TD Ameritrade.
Ultimately, when choosing a broker, website design should be given serious consideration – and in this area, TD Ameritrade comes out on top.
Verdict: For investors looking for a comprehensive and user-friendly website, TD Ameritrade is the clear winner.
Customer Service
When it comes to customer service, both TD Ameritrade and TD Direct Investing offer excellent support.
TD Ameritrade provides customers with a range of options, including phone, email, live chat, and video conferencing.
In addition, they have an extensive online help center with FAQs and tutorials.
TD Direct Investing also offers great customer service, with phone, email, and live chat options. They also provide an online help center with FAQs and tutorials.
Verdict: Both TD Ameritrade and TD Direct Investing offer excellent customer service and support. As such, there is no clear winner in this category. Both companies offer a variety of ways to get in touch, as well as extensive online resources. Therefore, the best option for you may come down to personal preference.
Overall Verdict: TD Ameritrade is one of the most popular online brokerages, offering a comprehensive suite of investment products and an easy-to-use platform.
The company offers stocks, ETFs, mutual funds, options, futures, and forex, and you can trade directly on the TD Ameritrade website or through the mobile app.
In addition to its investment offerings, TD Ameritrade also provides advanced tools and resources, such as market analysis and educational materials.
When it comes to online brokerages, TD Ameritrade is a leader in the industry. The company offers a comprehensive suite of platforms and tools for both beginner and experienced investors.
The platforms are user-friendly and packed with features, including real-time quotes, charts and analysis tools, and research from third-party sources. TD Ameritrade also provides excellent customer support, with 24/7 live chat, phone support, and Email assistance. Whether you’re just starting out or looking to take your trading to the next level, TD Ameritrade is a great choice.
Conclusion
Overall, TD Ameritrade is the better choice for investors who are looking for a comprehensive online brokerage service. However, although with solid features, in all honesty, there are better brokers out there.
Our personal recommendation is Interactive Brokers. Interactive is of the most efficient and reputable brokers on the market:
- They have clients in over 200 countries
- They work in over 24 currencies
- They find the best undervalued stocks on the world’s market with IBKR GlobalAnalyst
With their wide range of products, advanced tools and resources, and easy-to-use platform, they offer everything an investor could need to make informed decisions.
While other online brokerages may have lower fees or more intuitive platforms, Interactive Brokers provides a well-rounded experience that will appeal to both experienced investors and those just starting out.
In addition, their customer service is excellent, and they offer a wide variety of investment options, making them the perfect choice for anyone who wants to make the most of their hard-earned money.
So, if you’re looking for an online brokerage that can give you everything you need to make successful investments, Interactive Brokers is definitely the way to go.
- Lowest and most transparent commissions
- Large number of tradable security types
- Robust suite of research tools
- Low margin rates, from 0.75% to 1.59%
- Access to 40,000+ funds worldwide & 7,700+ funds with no transaction fees
