Vanguard vs TD Ameritrade 2024

Comparing brokers side by side is no easy task. We spend hundreds of hours each year testing the platforms, mobile apps, trading tools and general ease of use among online brokerages, as well as comparing commissions and fees, to find the best online broker.

Though many U.S. brokers offer basic trading features, such as an app, charting tools, stock research and educational content, the depth of those features can vary widely. Let's compare Vanguard vs TD Ameritrade.

In stock trading, the more you know, the better you’ll do. Taking advantage of resources like articles, webinars, videos and interactive elements is a great way to shorten the learning curve. In our analysis, we examine the availability of several different types of educational materials.

For 2024, our review finds that Vanguard offers more comprehensive new investor education for beginning investors than TD Ameritrade. Vanguard offers investors access to Videos, Education (Stocks) and Education (Retirement), while TD Ameritrade offers investors access to Paper Trading, Videos, Education (Stocks), Education (ETFs), Education (Options), Education (Mutual Funds), Education (Bonds) and Education (Retirement).

Vanguard and TD Ameritrade charge the same amount for regular stock trades, $0.00. Option contracts are pricier at Vanguard, costing $1.00 per contract versus $0.65 per contract at TD Ameritrade. For futures, TD Ameritrade charges $2.25 per contract and Vanguard charges (Not offered) per contract. For a deeper dive, see our best brokers for free stock trading or options trading guides.

Looking at a full range of investment options, including order types and international trading, our research has found that Vanguard offers a more comprehensive offering than TD Ameritrade. Vanguard ranks #9 out of 18 brokers for our Investment Options category, while TD Ameritrade ranks #N/A.

Vanguard offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds and Advisor Services, while TD Ameritrade offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds, Futures Trading, Forex Trading and Advisor Services. Neither have Fractional Shares. Looking at Mutual Funds, Vanguard trails TD Ameritrade in its offering of no transaction fee (NTF) mutual funds, with TD Ameritrade offering 3610 and Vanguard offering .

In our analysis of top U.S. brokerages, we research whether each broker offers the ability to trade cash cryptocurrency, such as bitcoin and ethereum. Though crypto has risen steadily in popularity, availability still varies from broker to broker. Our review finds that neither Vanguard or TD Ameritrade offer crypto trading.

To compare the day trading platforms of Vanguard and TD Ameritrade, we focused on trading tools and functionality across both web and desktop-based platforms. Popular day trading platform tools include streaming real-time quotes, stock alerts, trading hotkeys, direct market routing, streaming time and sales, customizable watch lists, backtesting, and fully functional charting packages, among many others. For day trading, Vanguard offers a better experience.

After testing 25 features across the stock trading apps of Vanguard and TD Ameritrade, we found Vanguard to be better overall. The best stock market apps are easy to use, have excellent design, and deliver a fully featured online trading experience. Vanguard ranks #18 out of 18 brokers, while TD Ameritrade ranks #N/A.

Vanguard Trading App Gallery

TD Ameritrade Trading App Gallery

For research, Vanguard offers superior market research than TD Ameritrade. Vanguard ranks #9 and TD Ameritrade ranks #N/A.

Over the years, we've found that the best brokers provide rich market commentary, a variety of third-party research reports, and thorough quote screens that are not just easy to navigate, but that also include a comprehensive selection of fundamental data. Robust stock, ETFs, and mutual fund screeners are also must-haves for trade idea generation.

Vanguard requires a minimum deposit of $0.00, while TD Ameritrade requires a minimum deposit of $0.00. From our testing, we found that SoFi is the only broker that requires a minimum deposit.

Vanguard charges 13.75% for accounts under $25,000 while TD Ameritrade charges a margin rate of 14.75%. The industry average of the 18 brokers we track is 9%.

Fractional shares are not offered by either broker. Our research has found that 54% of brokers offer fractional shares investing. Fractional shares allow traders to buy a part of a whole share of stock. For example, if Amazon is trading at $1,000, you could buy half a share for $500.

Both Vanguard and TD Ameritrade allow you to trade penny stocks. Vanguard charges $0.00 per trade while TD Ameritrade charges $6.95. Penny stocks are companies whose shares trade for under $5 and are listed over the counter (OTC). For brokers that do offer penny stock trades, the average commission is $3.

Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. neither of these are offered by Vanguard, while TD Ameritrade offers Checking Accounts, Debit Cards and Credit Cards. Neither have Savings Accounts and Mortgage Loans.

StockBrokers.com partners with customer experience research group Confero to conduct phone tests from locations across the United States to thoroughly evaluate the quality and speed of brokerage customer service. (Read more about How We Test.) Here are the results of our current testing.

Vanguard was rated 6th out of 13 brokers, with an overall score of 8.33 out of 10.

TD Ameritrade was rated 1st out of 14 brokers, with an overall score of 9.3 out of 10.

Vanguard is aimed squarely at buy-and-hold investors, and its platform reflects that focus. Vanguard is known for its low-cost funds, and the investment platform is really built for those looking to invest solely in mutual funds and ETFs.

TD Ameritrade delivers $0 trades, fantastic trading platforms, excellent market research, industry-leading education for beginners and reliable customer service, making it one of our top overall brokers in 2023. Note, however, that TD Ameritrade was acquired in 2020 by Charles Schwab and TD Ameritrade client accounts are currently being migrated in batches to Schwab, which has retained the standout thinkorswim platform.

In the 2023 StockBrokers.com Annual Review, TD Ameritrade was rated No. 1 for Platforms & Tools, Mobile Trading Apps, Ease of Use, Beginners, and Customer Service. It also ranked among Best in Class for Commissions & Fees, Research, Investment Options, Education, Active Trading and Overall. TD Ameritrade also won two StockBrokers.com Industry Awards: No. 1 for Phone Support and Trader App.