Fidelity vs. TD Ameritrade: 2024 Comparison

The rise of Robinhood and other companies that offer free trading options has prompted other brokerage companies to step up their game and carve out their part of the market.

Here, we have two major firms - Fidelity and TD Ameritrade - that offer a range of services free of charge. Both companies are US-based online brokerage firms that provide a wide variety of investment products, including stocks, option trades, ETFs, and mutual funds.

In this Fidelity vs. TD Ameritrade face-off, we will cover general information about these two enterprises and the services they offer. Then, we will take a closer look at their web and desktop platforms, and mobile apps. Finally, we will discuss their fees, the educational content they offer, and the quality of their customer service.

About Fidelity

Fidelity is a Boston-based brokerage company with a long track record, having been founded all the way back back in 1946. As of the end of 2021, it has generated a whopping $24 billion in revenue.

About TD Ameritrade

Although it is younger than Fidelity, Ameritrade is still an experienced company, established in 1975. Its headquarters are located in Omaha, Nebraska, and as of 2019, the company has generated $6 billion in revenue.

Fidelity vs. TD Ameritrade - General Features

First off, let’s compare TD Ameritrade and Fidelity in terms of their investment products, available platforms, and mobile apps.

As you can tell, both Fidelity’s and TD Ameritrade’s investment products include stocks, options, ETFs, mutual funds, and fixed-income bonds, among others. As TD Ameritrade also offers trading futures, you may use its platform to build a good futures trading strategy.

However, Fidelity lacks the futures and paper trading options. Therefore, if that’s something you’re looking for, TD Ameritrade is the superior choice.

Desktop Platforms

You can access Fidelity’s features on your computer in two ways - via Fidelity's web platform or by downloading Active Trader Pro for desktop.

Active Trader Pro is an intuitive program that enables users to carry out trades with ease, but its abundant features also make it suitable for advanced users. You can customize the user interface to further streamline program navigation. The web platform accessed via Fidelity’s website has similar features.

TD Ameritrade has an edge over Fidelity in terms of the number of desktop platforms that it offers - four, compared to Fidelity’s two. Aside from its namesake web and desktop apps, Ameritrade’s most popular platform is thinkorswim. Thinkorswim is the company’s extremely popular web, desktop, and mobile app.

Thinkorswim is highly customizable and features an array of advanced options. The main difference between the web and desktop versions is that the latter features a simpler layout. Both platforms allow you to trade equities, ETFs, options, futures, and much more.

In addition, TD Ameritrade supports the paperMoney feature exclusively via thinkorswim. This feature allows the user to trade using virtual money, going through a simulated trade without actually buying or selling any securities. As such, it allows the user to acquire the necessary knowledge and skills before investing any real funds. Fidelity has no comparable feature.

Mobile Apps

Fidelity and TD Ameritrade have some of the top mobile apps for making investments.

TD Ameritrade has two apps, as opposed to Fidelity’s one.

The Fidelity mobile app includes dollar-based investing, also known as trading fractional shares, as it allows you to invest in a portion of a share. On the other hand, TD Ameritrade Mobile Trader and thinkorswim Mobile don't have this feature. 

Fees

In this section, we will discuss how much Fidelity and TD Ameritrade charge for their services.

TD Ameritrade doesn’t charge any fees on stocks, ETFs, and options, but there is a $0.65 per-contract fee on options trading. Some of the company’s additional features carry a fee; for example, the interactive voice response (IVR) phone system costs $5.

Essentially, this feature lets you get answers to some questions from an automated phone system, and if you need advice that you can’t receive from the IVR, you may get in touch with a broker for another $25.

Neither TD Ameritrade nor Fidelity charge any monthly or annual account-keeping fees, commissions, or minimal trade amounts. However, if you wish to transfer your funds from TD Ameritrade to another account, you’re required to pay a $75 fee. Transferring out of Fidelity, on the other hand, is free.

Like TD Ameritrade, Fidelity mostly doesn’t impose any fees on stocks, ETFs, and option trades. It also charges $0.65 for each options-trading contract. In terms of bonds and CDs, there is a minimal fee that amounts to $1.

Educational Content

This section will review the educational content these two companies have to offer.

First up in the TD Ameritrade vs. Fidelity education showdown is TD Ameritrade. It includes the following:

• 200 instructional videos and tutorials
• Over 30 webcasts each week
• Investing courses

On the other hand, Fidelity offers the following content:

• Live and on-demand webinars
• Daily trading and investing training by professional coaches
• Four-week online beginner courses

While both companies offer a range of informative pages on a wide variety of subjects, Fidelity focuses more on courses and webinars, whereas TD Ameritrade prioritizes tutorials and articles.

Security

Both Fidelity and TD Ameritrade have taken rigorous steps to ensure their clients’ data remains secure.

When it comes to Fidelity, not only do they utilize up-to-date encryption and advanced firewalls, but they also conduct 24/7 system surveillance.

In addition, users can set up 2-factor identification and receive security alert texts. They also employ voice recognition technology to confirm client identity over the phone.

Just like Fidelity, TD Ameritrade employs encryption and firewalls to keep client data safe. In addition, with its Asset Protection Guarantee, TD Ameritrade offers reimbursement to any customers whose accounts are compromised.

Customer Service

Quality customer service is integral to positive customer experience. Poor customer service can deter potential clients and even prompt regulars to take their business elsewhere.

TD Ameritrade’s customer and account service support is available 24/7 over the phone, whereas technical support is available on weekdays from 7 a.m. to 6 p.m. ET.

Meanwhile, Fidelity provides a few extra options. Its customer service agents are available 24/7 via phone, but customers can also contact the company’s virtual assistant at any time or reach out to agents via live chat who are available from 8 a.m. to 10 p.m. ET on weekdays, and from 9 a.m. to 4 p.m. ET on weekends.

Final Verdict

Ultimately, both Fidelity and TD Ameritrade offer a variety of services free of charge. Both provide stock trade, option trade, ETFs, mutual funds, and annuities. However, TD Ameritrade also enables futures and paper trading for clients, unlike Fidelity. TD Ameritrade has more platforms that are more suitable for beginners than the ones Fidelity provides.

We can say that Fidelity has superior customer service, as apart from 24/7 customer service via phone, you may also contact them through live chat or text their virtual assistant. Also, Fidelity offers transferring funds out of the account for free, while TD Ameritrade charges $75.

What is more, both Fidelity’s and TD Ameritrade's security is top-notch. All in all, both firms provide exceptional service. Your choice will depend on your specific requirements.