Vanguard vs. TD Ameritrade: Which Broker Is Right for You?
Updated
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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.
Vanguard and TD Ameritrade are both solid places to buy and sell stocks and other investments. However, there isn't a perfect broker that will work for everyone. Both of these brokers have very different features and capabilities that may appeal to certain types of investors.
In this review, we'll look at Vanguard vs. TD Ameritrade head to head. The goal is to get a sense of each broker's strengths and weaknesses so you can determine which (if either) meets your investment needs.
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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 |
Rating
Rating image, 5.0 out of 5 stars.
5.0/5
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 |
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Commissions |
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Like most brokers, both Vanguard and TD Ameritrade offer $0 commission stock and ETF trades, but that's where the similarities end.
For starters, TD Ameritrade is a significantly cheaper place to buy and sell options, which certainly makes sense. After all, Vanguard is designed for long-term, buy-and-hold investing. On the other hand, TD Ameritrade offers the thinkorswim® active trading platform, which was specifically designed with options trading in mind.
When it comes to mutual funds, Vanguard is typically the better choice. Both brokers have thousands of funds on their no-transaction-fee (NTF) lists. But, for funds not on the list, Vanguard's mutual fund commission is less than half of TD Ameritrade's standard rate. Plus, Vanguard's own low-cost index funds trade commission free through the company's brokerage. It's very rare to find Vanguard funds on an NTF basis anywhere else.
Finally, Vanguard is one of the few brokers that doesn't charge a fee to transfer an account externally. TD Ameritrade charges for this service. But on the other hand, Vanguard is one of the only major brokers to charge an annual maintenance fee. However, it can be avoided fairly easily (for example, by keeping over $10,000 in Vanguard funds or by signing up for electronic delivery of documents).
| Vanguard | TD Ameritrade | |
|---|---|---|
| Stock & ETF commissions |
$0 online, $0 by phone, $25 for broker-assisted fee for ETF trades from other companies (Less than $1 million) |
$0 for online stock trades and commission-free ETF,s $5.00 for Interactive Voice Response (IVR) phone system trades, $25.00 for broker-assisted trades |
| Options commissions |
$0 + $1 per contract fee (less than $1 million), $0 for first 25 trades; $0 + $1-per-contract fee thereafter ($1 million to $5 million), $0 for first 100 trades; $0 + $1-per-contract fee thereafter ($5 million or more) |
$0.65 per contract, $5.00 + $0.65 fee per contract for Interactive Voice Response (IVR) phone system trades, $25.00 + $0.65 fee per contract for broker-assisted trades |
| Crypto commissions | Not available | Not available |
| Mutual fund commissions |
$0 online, $0 by phone, $25 for broker-assisted fee for mutual trades from other companies (Less than $1 million), $20 per online trade for transaction-fee mutual funds (less than $1 million) |
$0 for no-transaction-fee (NTF) mutual funds, $49.95 or $74.95 for buys and $0 for sells for no-load mutual funds, $0 for load mutual funds |
| Account transfer fee | $0 |
$75 full transfer, $0 partial transfer |
| Account maintenance fee | $25 (waived for many) | $0 |
Both platforms offer stocks, ETFs, options, mutual funds, and bond investing. Vanguard doesn't specifically quantify how many funds are available through its platform, only specifying that it's in the thousands. But to be fair, the exact number offered by any specific brokerage changes over time.
Neither broker offers the ability to buy fractional shares at this time. However, it's worth noting that TD Ameritrade has been acquired by Schwab, which does offer this feature. So, it's fair to assume that it's coming sooner rather than later. It's also important to mention that neither of these brokers offer cryptocurrency trading. So, if that's important to you, it may be a good idea to look elsewhere.
TD Ameritrade is the only one of the two that offers futures and foreign exchange (forex) trading. Keep this in mind if either investment type is interesting to you.
| Vanguard | TD Ameritrade | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | No |
| Options | Yes | Yes |
| Mutual funds | Yes, thousands available | Yes, about 13,000 total |
| CDs | Yes | Yes |
| Bonds | Yes | Yes |
| Futures | No | Yes |
| Crypto | No | No |
| Currencies | No | Yes |
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. |
Both Vanguard and TD Ameritrade are on equal footing when it comes to the types of accounts offered. Both offer pretty much any type of account an individual investor or small business would need to open. They both even offer several specialty account types including trusts, business accounts, and more.
| Vanguard | TD Ameritrade | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes, Vanguard Digital Advisor | No longer offered, must use Schwab Intelligent Portfolios |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | Yes | Yes |
| Custodial | Yes | Yes |
| Checking | No | No |
| Savings | No | No |
| Credit card | No | No |
For investors who simply want the ability to occasionally buy and sell stocks, ETFs, and mutual funds, either broker's platform should be sufficient.
Vanguard's is certainly the more "low-frills" of the two, and that's by design. It isn't intended for investors who plan to use complicated trading strategies or who frequently move in and out of positions. It is designed to allow long-term investors to gradually build a portfolio.
The web-based trading platform has tons of features that long-term investors will likely find useful, such as research reports and educational tools. Vanguard also has a highly-rated mobile app that allows investors to place trades and check their portfolios on the go.
On the other hand, TD Ameritrade offers something for all types of investors. Its platform is designed for everyone from the occasional buy-and-hold stock buyer to the most active traders. It offers a web-based platform that makes it easy to place basic trades, view stock research, and more. It offers the highly-rated thinkorswim® active trader platform that has functionality that active traders like to see. This includes offerings like backtesting strategies, advanced quote and charting features, and a fully-customizable view.
In addition, TD Ameritrade offers two different mobile apps. There's the TD Ameritrade Mobile app, which is roughly the equivalent of its desktop platform. There's also a mobile version of its thinkorswim® platform. Both are highly rated on the App Store and Google.
In a nutshell, Vanguard's trading platforms should be fine for most investors. Serious traders will likely find TD Ameritrade to be a better fit.
As mentioned earlier, there's no such thing as a perfect brokerage for everyone, and neither of these are an exception. Vanguard is an especially good fit for long-term investors who plan to use mutual funds as a cornerstone of their investment strategy, but isn't a great choice for active traders and investors who frequently buy and sell positions.
On the other hand, TD Ameritrade offers features and platforms for investors of all degrees of active or passive strategies, and is the clear winner for traders. However, TD Ameritrade accounts are being transitioned to Schwab thanks to the merger, along with its thinkorswim® platform. If you are considering opening an account at this brokerage, it is recommended to open it at Schwab since TD Ameritrade accounts will be automatically transferred in the future. The thinkorswim® platform will be accessible at Schwab from 2023 onward.
Both of these are solid brokers, and the best stock broker for you depends on which has the platform, features, investment choices, and fees that are a better fit for your personal investment goals.
TD Ameritrade accounts will be moved to Schwab accounts Labor Day weekend 2023 (Sept. 2-5). For more details, you can visit the TD Ameritrade or Schwab FAQ.
Schwab has decided to adopt thinkorswim®. TD Ameritrade account holders can continue to trade and invest using it until thinkorswim® moves to Schwab later in 2023.
Yes, you can still open an account at TD Ameritrade. However, since all accounts at TD will be eventually transitioned to Schwab, it makes sense to open an account at Schwab.
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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.
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
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
