E*TRADE vs TD Ameritrade (2026) — Which Is Better?
Compare E*TRADE and TD Ameritrade — features, pricing, pros and cons.
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.
Our Analysis
E*TRADE and TD Ameritrade both offer commission-free stock and ETF trading with comparable feature sets, but target different trader profiles. E*TRADE 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. E*TRADE's Power E*TRADE 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 E*TRADE if you're an active options trader seeking specialized tools and Morgan Stanley research without cryptocurrency exposure. New investors should default to E*TRADE 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.
Feature Comparison
| 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 | ✓ | ✓ |
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