Summary: eToro is by far the best online brokerage platform in the US and globally. Although TD Ameritrade does offer multiple types of platforms for beginners and advanced traders, eToro offers one platform that can be customised for all types of investors. Additionally, it offers investment opportunities in six different asset classes including stocks, ETFs, indices, commodities, fiat currencies and crypto.
When it comes to online trading platforms, there are a lot of options out there. Two of the most popular platforms are eToro and TD Ameritrade. Both platforms have a lot to offer investors, but which one is better? Here's a look at how eToro and TD Ameritrade compare in terms of fees, security, customer support, features, assets, mobile app, functionality and UI, and account types.
Does eToro have lower fees than TD Ameritrade?
Yes, eToro charges no commissions on trades. Instead, it makes money from what is called the "spread." The spread is the difference between the buy and sell prices of an asset. For example, if the buy price of an asset is $100 and the sell price is $101, the spread would be $1. In addition to commission-free trading, eToro has no additional fees except $5USD fee on every withdrawal and a $10 monthly inactivity fee.
TD Ameritrade on the other hand, charges a commission of $6.95 per trade on most assets and options trades are $6.95 per contract. Additionally, eToro does not charge any account maintenance fees while Ameritrade charges a $25 monthly fee for accounts with less than $25,000 in equity. And the monthly inactivity fee on TD Ameritrade is $25, which is $15 higher than eToros plus there is a $10 withdrawal fee.
Finally, when it comes to account minimums, Ameritrade requires a $2,500 minimum deposit while eToro has no minimum deposit requirements. Also, TD Ameritrade charges $25 - $40 to deposit USD onto its platform.
Winner: eToro has significantly lower and less fees than TD Ameritrade. On eToro users only need to pay a $5 withdrawal fee and a $10 inactivity fee (if they don't log in for 12 months), it is essentially free to use the platform.
Is TD Ameritrade more secure than the eToro platform?
Both eToro and TD Ameritrade are highly regulated platforms and have acquired the appropriate licensing to operate in the US. eToro is regulated by the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA), the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). TD Ameritrade is also regulated by the SEC and FINRA.
Winner: eToro is licensed under more regulatory authorities than TD Ameritrade, and is accessible in over 140 countries across the world. Additionally, it has never been subject to any form of cyber attack or hacking incident in 15 years, whereas TD Ameritrade has.
Which platform has better customer support?
eToro provides customer support in 43 different languages 24/7 through live chat, email, phone, and multiple online communities including: Facebook, Twitter, Instagram, LinkedIn & Youtube. TD Ameritrade also offers 24/7 customer support through live chat, phone and email but does not have any social media presence.
Winner: eToro is available to reach through more contact streams including online communities in over 40 languages.
What platform offers more features and assets?
eToro offers a number of features that make it a great platform for online trading. These features include social trading, copy trading, cryptocurrency staking, mobile and web platforms, and a user-friendly interface. eToro offers a wide range of assets including stocks, ETFs, commodities, fiat currencies, indices, and cryptocurrencies.
TD Ameritrade also offers a wide range of assets including stocks, ETFs, mutual funds, bonds, and options. The features on TD Ameritrade include advanced charting tools, a robust education centre and three types of trading platforms - a beginner platform, an advanced platform for professional traders and a Paper platform (virtual money).
Winner: eToro offers more features overall and has a wider selection of asset classes to invest in.
Which platform has better UI and functionality?
eToro's platform is easy to use and navigate, with a clean and simple interface, making it perfect for new investors. The platform also offers a virtual version of its exchange so you can make large trades without needing to risk real money. TD Ameritrade is also easy to use and navigate, but the interface is slightly more complex than eToro's, but still user-friendly.
Winner: eToro is the perfect platform for all types of investors as it can be customised to suit any traders needs.
eToro vs TD Ameritrade: Mobile App
eToro has a mobile app that is available to download for both iOS and Android. The app is user-friendly and offers all of the same features as the desktop platform. It is rated 4.4 stars from 7K reviews and ranked #60 overall in the Finance category on the Apple app store. On the Google Play store it is rated 4.2 stars from 120K reviews.
TD Ameritrade also offers a mobile app that is available for iOS and Android. The application has many negative reviews about the functionality and UI on the Google Play store and is rated a low 3.6 stars from 13K reviews. However, on the Apple app store, it is rated 4.5 stars from 110K reviews.
Winner: eToro has higher ratings on both the Apple app store and Google Play store, and is ranked higher overall in the Finance category.
Supported Account Types
eToro offers two account types: a real money account and a demo account. The real money account does not require a minimum deposit and allows you to trade with real money. The demo account is a great way to practice trading without risking any real money, and essentially allows users to trade with fake or 'virtual' money.
TD Ameritrade offers three account types: a standard account, an IRA account, and a Roth IRA account. The standard account requires a minimum deposit of $2,000 and allows you to trade commission-free for 60 days. The IRA and Roth IRA accounts have the same requirements as the standard account but also offer tax-advantages.
Winner: TD Ameritrade offers a more diverse range of accounts for different types of investors.
Both eToro and TD Ameritrade are great platforms for online trading. However, eToro is the better platform for new investors. It offers a user-friendly interface, commission-free trades, and a wide range of assets. TD Ameritrade is a great platform for more experienced investors. It offers advanced charting tools, a robust education center, and multiple account types.
If you're looking for a brokerage that offers a great all-around experience, eToro is a great choice. The platform is easy to use, offers a wide range of investment options, and has excellent customer service. To learn more about the eToro exchange, you can visit our comprehensive eToro Review.