TD Ameritrade vs Robinhood
TD Ameritrade vs Robinhood: Which financial products are available? What are the services fees? How is their customer support?
Here’s a quick overview and a fully detailed comparison below.
Robinhood and TD Ameritrade both are well established brands in the financial industry.
Having launched in 2013, Robinhood is a fairly new entrant but has gained great traction since its inception.
It is credited with revolutionizing the trading industry with its simplified commission free services.
Established in 1975, TD Ameritrade has been in the industry for many decades and is one of the industry behemoths. Its asset allocation constitutes to about $1 trillion till date.
TD Ameritrade vs Robinhood – Detailed Comparison
Robinhood provides support for limited assets like stocks, ETFs, options and cryptocurrencies.
On the other hand, being a large broker, TD Ameritrade offers a wide range of assets to trade and invest in. It offers support for stocks, ETFs, mutual funds, bonds, futures, options as well as forex.
TD Ameritrade also gives an option to trade in cryptocurrencies but only through BTC futures.
Both platforms have competitive pricing. However Robinhood, trumps TD Ameritrade with its commission free trading services.
Robinhood offers a simplified fee structure. Users can easily trade stocks, ETFs and options for free.
TD Ameritrade also offers free equity and ETFs trading for US clients. However for options, it charges $0.65 per contract. Moreover there is a fee of $44.99 and $49.99 for broker consultation and mutual funds respectively.
Customer support is one of the necessities when it comes to financial services and trading in particular.
TD Ameritrade offers excellent 24/7 customer support. It provides support through live telephone, chat as well as social media.
Robinhood however only offers support through its online web portal and application. Although Robinhood does not provide inbound phone support, you can set up a callback to get help.
TD Ameritrade vs Robinhood – Final Word
The above comparison showcases that Robinhood and TD Ameritrade both are great platforms to trade with.
TD Ameritrade undoubtedly is an industry giant with more than 50 decades of reliability and trust, whereas Robinhood is a new platform which is good for beginner traders who would like to get a knack of trading.
Its commission free trading services helps new traders save large sums of money.
Therefore, if you are looking to invest longterm and profit from dividends through retirement, TD Ameritrade is a sure shot. However, should you be looking to dabble into an active trading style (like day trading), Robinhood is really the go-to platform.