Robinhood’s commission-free trading and streamlined interface catapulted the Palo Alto-based company to widespread popularity in 2013. However, more and more investing giants have started offering a similar promise of free trading to get their slice of the market share back. One of these is TD Ameritrade, who recently launched their no-cost stock, ETF, and options trading. We went on Reddit to see what actual
Robinhood and TD Ameritrade users think of both investing platforms and we collated the most helpful ones below. Robinhood vs TD Ameritrade Reddit Review Research Each has its own advantages, but more Reddit users recommend TD Ameritrade’s thinkorswim trading platform than Robinhood’s Here’s a glimpse of what TD Ameritrade’s thinkorswim Web platform can look like (Photo: TD Ameritrade) Robinhood’s intuitive interface makes it one of the best options for those who want to test the waters on trading sans the commission fees. However, the more serious traders find Robinhood’s research tools and features wanting. One of the reputable brokers that stand out for heavy traders on Reddit is TD Ameritrade, specifically its thinkorswim desktop, Mobile, and Web trading platforms. Reddit user Namnambulu shares his experience on thinkorswim: Redditor Adderalin echoes this sentiment, specifically raving about TD Ameritrade’s thinkorswim desktop trading platform: Meanwhile, Robinhood’s mobile interface has been hailed as one of the most beginner-friendly investing platforms available, but its desktop version has had some complaints. Reddit user Namnambulu expressed that Robinhood’s graphical user interface makes it hard to view and track your portfolio. He reveals how he finds his way around this issue: Commissions and Fees It is completely free to trade options on Robinhood while TD Ameritrade charges 65 cents for every contract While trading options, ETF, and stocks is free on TD Ameritrade, there’s a $0.65 fee for every option contract TD Ameritrade recently joined Robinhood and many other online brokers in the trend of offering commission-free trading. This move makes the decades-old firm even more attractive to many traders who joined Robinhood for its free features. However, options traders who are planning to make the switch from Robinhood to DT Ameritrade should read Reddit user Namnambulu’s comment: While TD Ameritrade’s thinkorswim platform is highly-rated by many, others still prefer Robinhood’s lower fees. Reddit user robmafia expresses his worry regarding the Charles Schwab’s recent acquisition of TD Ameritrade and how it may affect the latter’s fees: To date, TD Ameritrade has not made any announcement regarding any changes of fees in the near future. Robinhood vs TD Ameritrade Comparison Chart
Investing Platform Robinhood TD Ameritrade Account Minimum $O $O Commission Fee Free Free stock and ETF trading, $0.65 cents for every options contract, $6.95 for over-the-counter stock trading Account Types Individual Brokerage Account Standard, Retirement, Education, Specialty, Managed Portfolios, Margin Trading Cryptocurrency Trading Yes Yes (Bitcoin Futures) Fractional Shares Yes Yes Short Selling No Yes Stocks, ETFs, Options Yes Yes Mutual Funds, Bonds, Forex No Yes Cash Management Yes Yes IPO Investments No (Only limited pre-IPO) Yes Research Tools Basic Advanced Verdict Robinhood’s barebones interface and lower costs make it easier to navigate for beginners, but those who require more features and want to learn trading more seriously will find TD Ameritrade the better option TD Ameritrade may have a higher learning curve than Robinhood, but the former offers tutorials that will make its platform less overwhelming Robinhood may get a lot of criticisms on the r/wallstreetbets subreddit, but some Reddit users still use it alongside TD Ameritrade for its lower costs. It’s still a good platform to start as you’re learning the ropes, especially when trading options, as Robinhood doesn’t charge a commission. Meanwhile, beginners who are willing to take on TD Ameritrade’s seemingly intimidating platform will find it the better option. You’ll get helpful tutorials when you sign up and more extensive research tools to help you make more sound trading and investment decisions. Heavy traders on Reddit also swear by TD Ameritrade’s thinkorswim platforms and consider it one of the best out there.