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Robinhood vs TD Ameritrade (best apps to invest in stocks / software)
Compare | Winner | |
User Interface | ||
Mobile App | ||
Customer Service | ||
Investment Options | ||
Commission Fees | ||
Account Minimum | ||
Trading Tools | ||
Education Resources | ||
Security | ||
International Trading | ||
FREE / PAID | TD Ameritrade earns from trade commissions. They charge $0 for online stock, ETF and options trades but $0.65 per options contract. Additional fees may apply. | Robinhood earns revenue from interest earned on customer cash and stocks, much like a bank collects interest on cash deposits. It is free for users. |
Conclusion | TD Ameritrade offers robust resources for the novice to advanced trader ✅📝📈, but watch out for some fees 🔎💸 | For the tech-savvy investor looking for a mobile-first platform and commission-free trades, Robinhood gets your money to work 🏦💰🚀 |
TD Ameritrade Pros & Cons
🔬 Great research tools
🎓 Excellent educational content
💹 Versatile trading platform
📞 Good customer service
🌍 Allows international trading
Robinhood Pros & Cons
😃 Easy to use interface
🚀 Fast execution of trades
💰 No minimum deposit
📱 Excellent mobile app
🎉 No commission on trades
🔐 Solid security features
💰 High fees
💸 Charges for broker-assisted trades
⌚ Delayed data updates
💼 Complex interface for beginners
⏳ Slightly slower trade execution
👥 No single stock futures
⏸️ No IRA accounts
❌ No mutual funds
💬 Poor customer support
📊 Limited tools and analysis
🌍 Doesn’t offer international trades
Other best apps to invest in stocks
With a wide range of investment options and great customer service, Fidelity makes investing accessible to the everyday investor 🤝📊💫
E*TRADE offers a good balance for beginners and experienced traders, but charges commission for mutual funds transaction 💼🔄💡
Charles Schwab offers a wide range of investment advice, products and services, including brokerage and retirement accounts, but has higher trade commission compared to others.✍️🔄💰
FAQ
What makes Robinhood a top choice for investing in stocks?
Robinhood is favored for its user-friendly interface and commission-free trades. It allows real-time trading and has the feature of fractional share investing, which opens up opportunities to purchase high-valued stocks. Its simple layout attracts beginners and experienced investors alike. This is the Robinhood application.
Which is better for beginners, TD Ameritrade or Robinhood?
While both platforms are beginner-friendly, TD Ameritrade offers more extensive educational resources for new investors. However, Robinhood‘s minimalist interface and zero-commission approach are also highly appealing to new traders.This is the TD Ameritrade application.
Can you short sell stocks on Robinhood?
No, Robinhood does not currently support the short selling of stocks. This trading strategy requires borrowing stocks to sell, which is not available on the platform.
Is there a minimum deposit on TD Ameritrade for stock investing?
No, there is no minimum deposit or balance required to keep a standard account open or to have access to regular trading on TD Ameritrade.
Does Robinhood offer options trading?
Yes, Robinhood allows options trading. Users can trade options without paying commission fees or per-contract fees, making it a tempting platform for options traders.
Does TD Ameritrade provide futures trading?
Yes, TD Ameritrade allows futures trading. Users can trade over 70 futures products virtually 24 hours a day, 6 days a week.
How can I transfer my stocks from Robinhood to another broker?
To transfer stocks from Robinhood to another broker, you will need to initiate an ACATS (Automated Customer Account Transfer Service) transfer. There is a fee associated with this service.
What are the commissions or fees on TD Ameritrade?
TD Ameritrade provides commission-free online trading for stocks, ETFs, and options. However, for options, there’s a $0.65 per contract fee.
What kind of investor is Robinhood best suited for?
Robinhood is ideally suited for novice investors due to its simplified interface and for active traders aiming for commission-free trades.
Does TD Ameritrade offer a robo-advisor?
Yes, TD Ameritrade offers a robo-advisor service called Essential Portfolios, an automated investing solution that builds, rebalances, and manages your portfolio.
What are the customer support options on Robinhood?
Robinhood provides support through email and their support center. They currently do not offer phone support.
How does TD Ameritrade protect investor assets?
TD Ameritrade offers a range of security measures to protect investors’ assets. These include asset protection guarantees, firewalls and encryption technology, secure email, and two-factor authentication.
Can you trade on international exchanges with Robinhood?
No, as of now, Robinhood only supports trading on U.S. exchanges and does not support foreign exchanges.
Does TD Ameritrade have a mobile app?
Yes, TD Ameritrade does have a mobile app. It allows users to trade and manage accounts on-the-go and is well-regarded for its user-friendly interface and comprehensive features.
What are the drawbacks of using Robinhood?
While Robinhood offers commission-free trading, the platform lacks the extensive research and educational resources that other brokers provide. Additionally, customer support is limited to email.
How reliable is TD Ameritrade?
TD Ameritrade is regarded as a highly reliable platform. It’s been in business for over 40 years and serves millions of customers worldwide. It is also a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC).
Does Robinhood offer margin trading?
Yes, with a Robinhood Gold account, which costs $5/month, investors can access margin trading.
Does TD Ameritrade offer Dividend Reinvestment Plan (DRIP)?
Yes, TD Ameritrade does offer DRIP. This allows investors to automatically reinvest their dividends back into the stock without any fees.
Does Robinhood provide tax documents?
Robinhood provides 1099 tax forms to users who have sold stocks, received dividends, or earned interest on uninvested cash during the tax year.
What kinds of accounts can you open with TD Ameritrade?
TD Ameritrade offers a range of accounts including individual, joint, custodial, and retirement accounts like Traditional IRA, Roth IRA, and others.
What are some of the top apps for investing in stocks?
There are several reputable apps for investing in stocks, including Robinhood, TD Ameritrade, E*TRADE, and Fidelity. Each of these apps offers different features and benefits to cater to diverse investor needs.
Is Robinhood a good app for beginners looking to invest in the stock market?
Yes, Robinhood is a good platform for beginners because it offers commission-free trading and a simple, user-friendly interface. The app allows for investing in stocks, ETFs, and cryptocurrencies.
How does TD Ameritrade compare to other stock investing apps?
TD Ameritrade stands out due to its extensive resources for market research and its diversity of investment options. Additionally, it does not require a minimum account balance, making it approachable for new investors.
Are these apps free to download?
Yes, apps such as Robinhood and TD Ameritrade are free to download but they do charge fees for certain transactions and services. Always review the fee structure before committing to a platform.
Can you buy and sell stocks on the same day on Robinhood?
Yes, Robinhood supports day trading. However, keep in mind that certain rules and regulations are applied to protect investors from risky trading behaviors.
Do I need a minimum amount to start investing with TD Ameritrade?
No, TD Ameritrade does not require a minimum account balance to start investing in stocks. This makes it a great platform for beginners and small-scale investors.
Does the Robinhood app offer educational resources for beginners?
Yes, Robinhood offers educational materials to help users learn the basics of investment strategies and how the stock market works.
Does TD Ameritrade offer features for advanced traders?
Yes, TD Ameritrade has quite a number of features for advanced traders, including a wide array of research tools, complex options trading, and futures and forex trading.
Can I invest in international stocks through Robinhood?
Robinhood currently allows users to invest in a select number of international companies via American Depositary Receipts (ADRs).
What types of accounts does TD Ameritrade offer?
TD Ameritrade offers a range of account types including individual and joint accounts, retirement accounts, education accounts, and specialty accounts.
How secure is my information on Robinhood?
Robinhood uses advanced security measures to protect user data, including encryption and two-factor authentication.
Does TD Ameritrade offer customer support?
Yes, TD Ameritrade offers 24/7 customer support to assist with any issues or questions related to their trading platform.
Does Robinhood charge commission fees for trades?
No, Robinhood does not charge commission fees for trades, making it a popular choice among new investors.
Can I access TD Ameritrade on multiple devices?
Yes, TD Ameritrade is accessible on multiple devices including desktop, tablets and smartphones through their app.
Is there a limit to how many trades I can make on Robinhood?
No, there’s no limit on how many trades you can make on Robinhood, but it’s important to stay aware of the federal regulations regarding Pattern Day Trading.
Can I trade options with TD Ameritrade?
Yes, TD Ameritrade supports options trading, as well as futures and forex trading.
Can I open an IRA with Robinhood?
As of now, Robinhood does not offer retirement accounts like Individual Retirement Accounts (IRAs).
What platforms does TD Ameritrade offer for trading?
In addition to the TD Ameritrade mobile app, they also offer the Web Platform for beginner traders and thinkorswim for more advanced traders.
Can I invest in cryptocurrencies through Robinhood?
Yes, Robinhood allows users to invest in a variety of cryptocurrencies like Bitcoin, Ethereum, and more.
Does TD Ameritrade offer investor education?
Yes, TD Ameritrade provides a wide range of educational resources, including articles, videos, webcasts, and even virtual trading to practice strategies risk-free.