E*TRADE vs TD Ameritrade (2026) — Which Is Better?
Compare E*TRADE and TD Ameritrade — features, pricing, pros and cons.
Numbers, fees, and platform capabilities cited here come from each vendor's public documentation. Confirm current pricing before you commit. Methodology →
Quick Verdict
Higher Rated
TD Ameritrade (4.4)
More Affordable
E*TRADE (Free)
E*TRADE
Morgan Stanley's online brokerage with Power E*TRADE for options trading, commission-free stocks, and comprehensive banking integration.
TD Ameritrade
Legacy full-service brokerage now merged with Charles Schwab, offering commission-free trading, powerful tools, and extensive research.
Fee & Feature Breakdown
| Feature | E*TRADE | TD Ameritrade |
|---|---|---|
| Rating | ★ 4.3 | ★ 4.4 |
| Starting Price | Free | Free |
| Free Tier | Yes | Yes |
| Markets | stocks, options, futures | stocks, options, futures, forex, crypto |
| AI Analysis | ✗ | ✗ |
| Backtesting | ✗ | ✓ |
| Paper Trading | ✓ | ✓ |
| Price Alerts | ✓ | ✓ |
| Mobile App | ✓ | ✓ |
| API Access | ✗ | ✓ |
| Social Features | ✗ | ✗ |
| Broker Integration | ✓ | ✓ |
| Custom Indicators | ✗ | ✓ |
| Automated Trading | ✗ | ✗ |
| Trade Journaling | ✗ | ✗ |
| Performance Analytics | ✓ | ✓ |
| Risk Management | ✓ | ✓ |
| News Feed | ✓ | ✓ |
| Education Content | ✓ | ✓ |
Broker Head-to-Head
ETRADE and TD Ameritrade both offer commission-free stock and ETF trading with comparable feature sets, but target different trader profiles. ETRADE specializes as an options-focused platform through its Power E*TRADE suite and Morgan Stanley research integration, making it stronger for active options traders. TD Ameritrade, now integrated into Charles Schwab, positions itself as the broader ecosystem with the industry-leading thinkorswim interface and deeper educational resources, appealing to intermediate to advanced traders seeking comprehensive tools.
The decisive differentiator is platform scope and viability. ETRADE's Power ETRADE delivers superior options trading with volume-based commission discounts, while TD Ameritrade's thinkorswim provides more advanced charting, analysis, and backtesting capabilities. However, TD Ameritrade faces a critical constraint: it no longer accepts new accounts following the Schwab merger. Legacy account holders can remain, but new traders are barred from opening positions.
Choose ETRADE if you're an active options trader seeking specialized tools and Morgan Stanley research without cryptocurrency exposure. New investors should default to ETRADE given TD Ameritrade's account closure restriction. Only existing TD Ameritrade account holders can evaluate thinkorswim's advantages, but most evaluating these platforms today should focus on E*TRADE as the viable option.
E*TRADE: Pros & Cons
Pros
- + Power E*TRADE is excellent for options trading
- + Morgan Stanley research integration
- + Volume discounts on options commissions
- + Strong mobile app experience
Cons
- - No cryptocurrency trading
- - Futures offerings are limited
- - Banking features less robust than Schwab
- - Platform can feel dated outside Power E*TRADE
TD Ameritrade: Pros & Cons
Pros
- + Commission-free stock and ETF trades
- + thinkorswim platform is industry-leading
- + Extensive research and educational content
- + Strong options trading capabilities
Cons
- - Now merged into Schwab — no new TD Ameritrade accounts
- - Options contracts still cost $0.65 each
- - Transition period caused some account disruptions