TradeKing vs TD Ameritrade

Retail investors looking to compare Ally Invest vs TD Ameritrade will find that these two online discount brokers appeal to different types of investors. While both are reputable, well-known brokerage firms in the United States, there are a few distinct differences between TD Ameritrade and Ally Invest (formerly known as TradeKing).

For instance, Ally Invest charges some of the lowest fees and commissions in the industry, while TD Ameritrade is a higher cost trading platform. However, the reason for this is that TD Ameritrade’s platforms are extremely robust and powerful, and the company also offers its clients access to tons of investment research. In a sense, one could argue that TD Ameritrade is still a value.

In this review, we will compare TD Ameritrade and Ally Invest’s fees and commissions, features, trading platform, research tools, customer support, promotions and margin rates to help you decide which online stock broker is best for your investment needs – Ally Invest or TD Ameritrade.

Ally Invest vs TD Ameritrade: Trading and Account Fees

A comparison of Ally Invest’s fees vs TD Ameritrade’s fees demonstrates that Ally Invest is the cheaper trading platform. If you are starting to invest as a beginner, Ally Invest may be the better stock broker for your needs.

ALLY INVEST:

  • Stocks and ETFs: $4.95
  • Options: $4.95 + $0.65 per contract
  • Mutual Funds: $9.95
  • Broker-Assisted Orders: $20.00
  • Account Minimum: $0.00
  • IRAs: No Fees
  • IRA Account Minimum: $0.00
  • Inactivity fee is waived for accounts with $2,500.

TD AMERITRADE:

  • Stocks and ETFs: $9.99
  • Options: $9.99 + $0.75 per contract
  • Mutual Funds: $49.99
  • Broker-Assisted Orders: $44.99
  • Account Minimum: $0.00
  • IRAs: No Fees
  • IRA Account Minimum: $0.00
  • No inactivity, account maintenance or hidden fees.

Ally Invest vs TD Ameritrade: Features

Below, we compare the pros and cons of Ally Invest and TD Ameritrade. Given the strength of TD Ameritrade’s features, trading tools, and investment research, investors might not mind the brokerage firm’s higher trading fees. On the other hand, if you just want the cheapest trading site, open an account with Ally Invest.

ALLY INVEST:

  • An award-winning, industry-recognized trading platform, especially for options trading.
  • Web-based platform only.
  • Free real-time quotes.
  • Access to over 12,000 mutual funds.
  • No commission-free ETFs.
  • No international investing available.
  • Excellent customer service and real-time support.
  • TradeKing Advisors offers virtual financial planning.
  • MarketGrader research reports as well as educational courses and seminars.
  • Free dividend reinvestment program.
  • Access to TradeKing Network, the best-rated online investor community.
  • Margin Rates: 7.75%-4.00%

Trade Types

  • Stock Trading
  • Options Trading
  • Mutual Funds
  • FOREX Trading

Mobile Trading

  • iPhone and Android Apps
  • Mobile Trading Platform and Tools

TD AMERITRADE:

  • Two award-winning and very powerful trading platforms (ThinkorSwim and Trade Architect).
  • Desktop and web-based platforms.
  • Free real-time streaming quotes.
  • Access to over 13,000 mutual funds.
  • 100+ commission-free ETFs.
  • No access to international markets or trading.
  • 24/7 customer service and real-time support.
  • 125+ branch offices nationwide.
  • Access to independent research reports, including Standard & Poor’s, Morningstar, TheStreet, etc.
  • Free dividend reinvestment program (DRIP).
  • Access to myTRADE investor community, where traders share ideas and strategies.
  • Margin Rates: 9.00%-6.25%

Trade Types

  • Stock Trading
  • Options Trading
  • Mutual Funds
  • FOREX Trading
  • Futures Trading

Mobile Trading

  • iPhone, iPad and Android Apps
  • Mobile Trading Platform and Tools

Promotions

Fortunately for you, regardless of which discount broker you choose to invest with, both TradeKing and TD Ameritrade have on-going promotions for new clients, including free trades and cash bonuses.

ALLY INVEST:

  • Switch to Ally Invest and Get Up To $150 Back

TD AMERITRADE:

  • Free Trades for 60 days and up to $600 cash

Margin Rates

If you trade on margin, then margin rates will affect your portfolio’s returns, making it important to find a company with reasonable interest rates. Between TD Ameritrade and Ally Invest, Ally Invest offers investors the lowest margin rates on every tier.

ALLY INVEST:

  • Under $25K: 7.75%
  • $25K-$49K: 7.75%
  • $50K-$99K: 6.75%
  • $100K-$249K: 5.50%
  • $250K-$499K: 4.50%
  • $500K-$999K: 4.00%
  • $1,000,000+: 4.00%

TD AMERITRADE:

  • Under $10K: 9.00%
  • $10K-$25K: 8.75%
  • $25K-$50K: 8.50%
  • $50K-$100K: 7.50%
  • $100K-$250K: 7.25%
  • $250K-$999K: 7.00%
  • $1,000,000+: 6.25%

Ally Invest vs TD Ameritrade: Comparison Summary

As an investor, the decision to open a brokerage account with Ally Invest or TD Ameritrade rests solely on what you value. While both online discount brokers provide solid features, strong platforms and excellent customer service, TradeKing’s cheaper pricing structure may be better for novice investors who are starting to invest with little money and TD Ameritrade’s cost structure can be justified for investors who want high-level stock and options trading tools, free research reports and extensive educational webinars.