Contributor, Benzinga
February 22, 2023

As an investor, you might be familiar with ETRADE, one of the leading brokerage firms in the United States. However, there are other options out there that you might want to consider as well. In this article, we'll take a look at 5 ETRADE alternatives and the pros and cons of each platform.

TD Ameritrade

TD Ameritrade is a popular online brokerage firm that offers a wide range of investment products, including stocks, options, futures, and forex. Here are some pros and cons to consider:

Pros:

  • No minimum investment: You can start investing with TD Ameritrade with no minimum investment, making it an excellent choice for new investors who want to start small.
  • Extensive research and educational resources: TD Ameritrade offers a wide range of research and educational resources to help investors make informed decisions.
  • Advanced trading tools: TD Ameritrade offers a suite of advanced trading tools that are designed to meet the needs of experienced traders.

Cons:

  • Higher fees: TD Ameritrade charges higher fees compared to some other online brokers. For example, they charge $6.95 per trade for stocks and ETFs.
  • Confusing pricing structure: TD Ameritrade's pricing structure can be confusing, with different fees for different types of trades and account sizes.
  • No fractional shares: TD Ameritrade does not offer fractional shares, which may be a deal-breaker for some investors.

Robinhood

Robinhood is a commission-free brokerage firm that has gained popularity in recent years, especially among younger investors. Here are some pros and cons to consider:

Pros:

  • Commission-free trading: Robinhood does not charge any commission for trading stocks, ETFs, or options.
  • Easy-to-use app: Robinhood has a user-friendly app that is easy to use, making it an excellent choice for new investors.
  • Fractional shares: Robinhood allows investors to purchase fractional shares, which can be a great way to invest in expensive stocks without having to buy a whole share.

Cons:

  • Limited investment options: Robinhood only offers stocks, ETFs, and options, which may not be enough for some investors.
  • Poor customer service: Robinhood has been criticized for poor customer service, with long wait times and unresponsive representatives.
  • Security concerns: Robinhood has had some security concerns in the past, which may be a concern for some investors.

Fidelity

Fidelity is a full-service brokerage firm that offers a wide range of investment products and services. Here are some pros and cons to consider:

Pros:

  • Low fees: Fidelity has some of the lowest fees in the industry, with no commission for trading stocks, ETFs, or options.
  • Wide range of investment products: Fidelity offers a wide range of investment products, including stocks, bonds, ETFs, mutual funds, and more.
  • Excellent customer service: Fidelity has a reputation for excellent customer service, with fast response times and knowledgeable representatives.

Cons:

  • High minimum investment: Fidelity has a higher minimum investment compared to some other brokers, with a minimum of $2,500 for most accounts.
  • Limited research and educational resources: Fidelity's research and educational resources are not as extensive compared to some other brokers.
  • Limited access to advanced trading tools: Fidelity's advanced trading tools are only available to active traders who make more than 36 trades per year.

Charles Schwab

Charles Schwab is a full-service brokerage firm that offers a wide range of investment products and services. Here are some pros and cons to consider:

Pros:

  • Low fees: Charles Schwab has no commission for trading stocks, ETFs, or options, and has some of the lowest fees in the industry.
  • Wide range of investment products: Charles Schwab offers a wide range of investment products, including stocks, bonds, ETFs, mutual funds, and more.
  • Excellent customer service: Charles Schwab is known for its excellent customer service, with fast response times and knowledgeable representatives.

Cons:

  • Higher minimum investment: Charles Schwab has a higher minimum investment compared to some other brokers, with a minimum of $1,000 for most accounts.
  • Limited access to advanced trading tools: Charles Schwab's advanced trading tools are only available to active traders who make more than 36 trades per year.
  • Inconsistent user interface: Some users have reported that Charles Schwab's user interface is inconsistent and difficult to navigate.

Ally Invest

Ally Invest is a discount brokerage firm that offers a range of investment products and services. Here are some pros and cons to consider:

Pros:

  • Low fees: Ally Invest has some of the lowest fees in the industry, with no commission for trading stocks, ETFs, or options.
  • No minimum investment: Ally Invest has no minimum investment, making it an excellent choice for new investors who want to start small.
  • Excellent user interface: Ally Invest has a user-friendly interface that is easy to navigate, making it an excellent choice for new investors.

Cons:

  • Limited research and educational resources: Ally Invest's research and educational resources are not as extensive compared to some other brokers.
  • Limited investment products: Ally Invest only offers stocks, options, ETFs, and bonds, which may not be enough for some investors.
  • Limited access to advanced trading tools: Ally Invest's advanced trading tools are only available to active traders who make more than 30 trades per quarter.

Final Thoughts on ETRADE Alternatives

As you can see, there are many ETRADE alternatives available to investors. Each platform has its own pros and cons, so it's important to do your research and choose the one that best meets your needs. TD Ameritrade is an excellent choice for experienced traders who want advanced trading tools, while Robinhood is a great option for new investors who want a user-friendly app. Fidelity and Charles Schwab both offer a wide range of investment products and excellent customer service, but have higher minimum investments. Finally, Ally Invest is an excellent choice for new investors who want low fees and an easy-to-use interface. Ultimately, the best ETRADE alternative for you will depend on your investment goals, experience level, and personal preferences.