Using data from our latest annual broker review which tested more than a dozen different online brokers over six months, we can compare Interactive Brokers vs TD Ameritrade to determine which broker is best. Let's dive in.
First, we will break down the commission charges of both brokers for placing stock and options trades. Interactive Brokers and TD Ameritrade charge the same amount for regular stock trades, $0. For options trading, both Interactive Brokers and TD Ameritrade charge the same base fee of $0. Each option contract then costs $0.70 at Interactive Brokers and $0.65 at TD Ameritrade. Instead of flat rate fees, several brokers charge a per-share fee instead. For a complete review of trading charges, read our full online broker reviews.
Next, investors want to make sure they can trade the investment vehicle they want. TD Ameritrade offers clients Stock Trading, Options Trading, Mutual Funds, Forex Trading and Futures Trading while Interactive Brokers offers Stock Trading, Options Trading, Mutual Funds and Futures Trading. As far as mutual funds go, Interactive Brokers trails TD Ameritrade by 10,706 total mutual funds, with TD Ameritrade offering 11949 and Interactive Brokers offering 1243.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Interactive Brokers and TD Ameritrade both offer virtual trading. For mobile trading, Interactive Brokers along with TD Ameritrade both support the iPhone App, iPad App and Android App. Online banking is also used by many customers, and multiple full-service brokerages provide these services. Clients can have Checking Accounts and Debit Cards at Interactive Brokers while customers at TD Ameritrade can have Checking Accounts, Debit Cards and Credit Cards.
Overall, between Interactive Brokers and TD Ameritrade, TD Ameritrade is the winner.
Interactive Brokers Review
TD Ameritrade Review