TD Ameritrade Essential Portfolios Review: Socially Aware Investing
Review
Updated
If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
TD Ameritrade has been acquired by Charles Schwab, and the company expects all accounts to be transitioned by the end of 2024. We've kept this page covering TD Ameritrade for historical purposes. For the most up-to-date information on Charles Schwab accounts, please see our corresponding Charles Schwab page.
TD Ameritrade Essential Portfolios is among the best robo-advisors for account types, portfolio selection, and customer service. While it's management fee and account minimums are on the higher end, compared to competitors, the robo-advisors makes up for this with features such as low-cost ETFs and advanced offerings, such as tax-loss harvesting. But is this robo-advisor right for you? Find out in our comprehensive TD Ameritrade Essential Portfolios review.
TD Ameritrade Essential Portfolios
TD Ameritrade Essential Portfolios has a great portfolio selection and in-person help, but its high account minimum might be too steep for some investors.
$0 per trade, management fee 0.30%, expense ratio 0.06%-0.07%
$5,000
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
This robo-advisor is a good fit for: Hands-off investors that want access to a diverse set of portfolio options and account types.
TD Ameritrade Essential Portfolios offers one of the most extensive selections of portfolio options among the best robo-advisors. Investors can choose from five Socially Aware Portfolios which focus on environmentally and socially friendly companies, as well as a number of core portfolio options.
This is one of the biggest differentiators of TD Ameritrade Essential Portfolios. Few other robo-advisors offer free and automatic tax-loss harvesting, and those that do generally only offer it for large accounts. Schwab Intelligent Portfolios, for instance, offers tax-loss harvesting to clients with $50,000 or more of invested assets. This can save investors hundreds of dollars in taxes.
If you'd rather get customer service help in person than over the phone or through email, TD Ameritrade has more than 275 branches across the United States. Few other brokers can match this physical presence. However, it's worth noting that TD Ameritrade had closed all of its branches temporarily due to the COVID-19 pandemic, but some are reopening on a local basis.
While TD Ameritrade's management fee isn't the lowest we've found, the low-cost ETFs it uses to construct client portfolios helps make up for it. ETFs in the core portfolios have expense ratios of just 0.06%-0.07%, and even the 0.10%-0.17% expense ratios charged for its Socially Aware Portfolios are rather cheap.
TD Ameritrade Essential Portfolios automatically rebalances client portfolios annually and on an as-needed basis. Some competitors only rebalance assets at predetermined intervals, such as every six months.
You can contact TD Ameritrade by phone, email, text, and chat through Facebook and Twitter.
Unlike many of TD Ameritrade's robo-advisor competitors, TD Ameritrade Essential Portfolios supports a long list of account types. In addition to individual and joint brokerage accounts, you can open an Essential Portfolios IRA (traditional, Roth, rollover, SEP, or SIMPLE), Coverdell ESA, trust, solo 401(k) (traditional or Roth), custodial, or business account. Virtually every type of investment account can be accommodated.
TIP
Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. The average stock pick inside Stock Advisor is up 874% — more than 5x that of the S&P 500! (as of 3/6/2025). Learn more and get started today with a special new member discount.
TD Ameritrade Essential Portfolios charges a 0.30% annual account management fee. This means you'll pay $3 in management fees for every $1,000 you’ve invested. This isn't the highest we've seen, and TD Ameritrade offers some impressive features, but it's on the upper end of the spectrum of our favorite robo-advisors.
TD Ameritrade Essential Portfolios requires investors to deposit at least $5,000 to get started or $500 plus a commitment to make automatic deposits. That's on the high end of the robo-advisors we cover, and could be a turn-off for newer investors who may not have a lot of capital to commit.
Unlike some of its competitors, TD Ameritrade Essential Portfolios doesn't give clients access to human financial advisors. It does have Portfolios Specialists to answer questions about the service, but if you want advice for things like saving money to buy a house or creating a budget, you might be better off looking elsewhere.
Like most robo-advisors, TD Ameritrade Essential Portfolios asks new clients to fill out a short questionnaire to determine risk tolerance and investment goals. Based on these results, you get a recommended portfolio. You can accept the recommendations, modify your risk level, or choose a specific approach (such as the Socially Aware Portfolios).
TD Ameritrade Essential Portfolios offers standard robo-advisor services such as automatic portfolio rebalancing and professionally designed investment portfolios. In addition, it offers a few stand-out services. For example, TD Ameritrade Essential Portfolios is one of the only robo-advisors that offers free and automatic tax-loss harvesting, and it's the only one on our best robo-advisors list to offer it to clients of all account sizes. This is a strategy by which a robo-advisor strategically sells investments that have declined in value and re-invests this capital elsewhere to offset taxable gains on other investments. If you have a larger account or are in one of the higher tax brackets, this feature alone can more than pay for TD Ameritrade's management fee.
TD Ameritrade is one of a few robo-advisors offering socially aware portfolios, but offers a wider selection than most, and uses some of the cheapest socially responsible ETFs to construct these portfolios.
When it comes to pricing, TD Ameritrade Essential Portfolios isn't the cheapest in the business, but it still delivers good value considering its features. Here's a breakdown of the cost structure:
| Service/Item | TD Ameritrade Essential Portfolios Cost |
|---|---|
| Account management fee | 0.30% |
| Investment fund fees | 0.06%-0.17% |
| All-in fees | 0.36%-0.47% |
| Other account charges | None |
There are two types of support clients of a robo-advisor could need -- investment advice from a human being, and help with technical issues. No access to human financial advisors is included with TD Ameritrade Essential Portfolios. TD Ameritrade offers higher-level services that include personalized financial advice from advisors, but it's not a part of the basic robo-advisor service.
On the other hand, TD Ameritrade has excellent customer service when it comes to general account help. Not only is there support by phone and email, you can obtain help via Facebook and Twitter messaging. Simply put, great customer satisfaction can't be overlooked and it's a key feature when choosing the best stock broker for your needs.
TD Ameritrade was acquired by Charles Schwab, and as of 2023, stopped accepting new clients for its managed portfolio products, including Essential Portfolios. Existing Essential Portfolio accounts are set to be migrated to Schwab's platform on Sept. 1, 2023, and while investments will remain intact, they will become self-directed accounts, not robo-advisory accounts.
TD Ameritrade Essential Portfolios charge a 0.30% management fee, and the underlying investments in accounts have their own fees. All-in, Essential Portfolios fees range from 0.36% to 0.47% of assets per year.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
