TD Ameritrade vs. Robinhood: A Comprehensive Comparison (2021)

TD Ameritrade and Robinhood both offer online brokerage platforms to make investing easier for consumers. One is an established powerhouse with over 45 years of experience and more than $1 trillion in assets. The other is a fintech startup that is trying to make investing accessible to everyone.

In this article, we'll compare TD Ameritrade vs. Robinhood to highlight what they're good at and how they're different so you can determine which one may be right for you.

In this article

• TD Ameritrade vs. Robinhood
• How does TD Ameritrade work?
• How does Robinhood work?
• What both investment platforms excel at
• 8 important differences between TD Ameritrade and Robinhood
• Which investment platform should you choose?
• FAQs
• Bottom line

TD Ameritrade vs. Robinhood

Before we get into the details, let's look at an overview of TD Ameritrade vs. Robinhood. Knowing some basics will make it easier to choose how you’d like to go about investing money.

Minimum investment $0, except for margin accounts, which require $2,000 $0, except for margin accounts, which require $2,000 Management fees None None Asset classes

• Stocks
• Options
• ETFs
• Cryptocurrency
• Mutual funds
• Futures
• Forex
• Managed portfolios
• Bonds amd fixed income
• Annuities
• Collateral lending

• Stocks
• Options
• ETFs
• Cryptocurrency
• ADRs
• Gold
• Cash management

Account types available

• Individual
• Joint tenants
• Traditional IRA
• Roth IRA
• UTMA/UGMA
• Solo 401(k)
• 529 Account
• Trust Accounts
• And more...

• Individual accounts only

Features

• $0 commissions on online stock, ETF, and option trades
• Live telephone customer support
• Over 175 physical branches nationwide
• Live help via in-app chat
• Robust research tools

• Unlimited commission-free trades
• Crypto and gold available
• Purchase fractional shares
• Invest with as little as $1

Distributions Assets held in retirement accounts may be subject to required minimum distributions Brokerage accounts do not have required minimum distributions Taxes Taxation depends on the type of account you open. Customers receive relevant tax forms based on their trading patterns and the performance of their investments. In general, brokerage accounts may trigger taxes, while certain retirement accounts may grow tax free. The sale of stocks in a brokerage trigger relevant tax forms for profits and losses. Additionally, dividend payments also result in tax forms. Brokerage accounts do not grow tax free like certain retirement accounts do. Best for... Investors looking for a full-service brokerage with no commissions. Beginning investors and people wanting to purchase fractional shares using small-dollar investments. Visit TD Ameritrade Visit Robinhood

How does TD Ameritrade work?

As a traditional brokerage, TD Ameritrade offers investors the ability to trade over the phone, in-person, online, or through its mobile app. It offers a full array of investment options for accounts of all types, including taxable brokerage accounts, retirement accounts, and company plans.

TD Ameritrade offers real-time streaming quotes, which provide the most accurate and up-to-date values of stocks, bonds, and exchange-traded funds. Additionally, investors have access to a full suite of free tools to research investments. In addition to researching investments, these tools also provide educational topics ranging from beginner to advanced. These tools are available online, as a desktop application, and through TD Ameritrade’s mobile app.

Investors have access to a wide variety of investment options. TD Ameritrade investors can purchase common investments like stocks, bonds, CDs, annuities, ETFs, and mutual funds. Sophisticated investments like options, futures, margin accounts, managed portfolios, and forex are also available.

TD Ameritrade has no account minimum to get started and has a low-cost fee structure, including $0 commissions on online stock trades, ETF trades, and options trading. Read our TD Ameritrade review for even more details.