Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Vanguard vs. TD Ameritrade: The biggest differences
Compare Vanguard and TD Ameritrade
-
Vanguard
-
TD Ameritrade investment account
0% (0.20% to 0.30% for automated and professionally managed portfolios)
Editor’s Rating
Stocks, ETFs, options, bonds, mutual funds, and CDs
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Editor’s Rating
Stocks, ETFs, options, mutual funds, futures, forex, IPOs, and bonds
Vanguard and TD Ameritrade offer a wide array of account types and investment choices for both active traders and passive investors. However, the platforms differ when it comes to fees, features, and investment choices.
Overall, Vanguard is the better choice for retirement investing. It offers multiple types of low-cost mutual funds (e.g., all-in-one retirement funds, index funds, and admiral share funds) that the brokerage itself manages, and its selection of retirement planning resources is hard to beat.
TD Ameritrade best suits active traders who want a wider variety of platforms and tools to utilize when making investment decisions. In addition to its web platform, it offers the thinkorswim web and desktop platforms for more advanced traders, and its options contract price ($0.65) is cheaper than Vanguard’s ($1).
Account Minimum
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)
Fees
0% (0.20% to 0.30% for professionally managed portfolios)
Investment Types
Stocks, ETFs, options, bonds, mutual funds, and CDs
Account Minimum
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)
Fees
0% (0.20% to 0.30% for professionally managed portfolios)
Investment Types
Stocks, ETFs, options, bonds, mutual funds, and CDs
Details
Account Minimum
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)
Fees
0% (0.20% to 0.30% for professionally managed portfolios)
Pros & Cons
Highlights
Additional Reading
TD Ameritrade investment account
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Investment Types
Stocks, ETFs, options, mutual funds, futures, forex, IPOs, and bonds
TD Ameritrade investment account
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Investment Types
Stocks, ETFs, options, mutual funds, futures, forex, IPOs, and bonds
On TD Ameritrade’s website
Details
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Pros & Cons
Highlights
Additional Reading
Vanguard and TD Ameritrade’s features and account options also vary.
Is Vanguard right for you?
Founded in 1975, Vanguard is an online brokerage offering self-directed individual and joint accounts, automated investing portfolios, IRAs, small business retirement plans, education savings accounts, and much more. The platform also stands out due to its zero-commission stock, ETF, and options offerings.
When it comes to Vanguard’s other investment types, you’ll have the choice of mutual funds, bonds, international investments, and CDs. Most of the brokerage’s actively managed mutual funds have a $3,000 minimum, but you’ll only need $1,000 for investor shares in Vanguard Target Retirement Funds and the Vanguard Star Fund.
While Vanguard’s ETFs and options are generally commission-free, its ETFs still have a 0.6% average expense ratio, and options contracts cost $1 each. You’ll run into additional fees if you use either of its automated portfolios.
The first — and cheapest — option Vanguard offers for automated portfolio management is Vanguard Digital Advisor. You’ll be responsible for a $3,000 minimum and 0.20% annual fee, but you get access to a personalized portfolio of Vanguard ETFs that the platform allocates based on your investing preferences.
Its other automated investing account, Vanguard Personal Advisor Services, offers something more: one-on-one advisor guidance. This means you’ll have both computer algorithms and a Vanguard fiduciary advisor working on your behalf. This account comes with a $50,000 minimum and a 0.30% annual fee.
On the retirement side, Vanguard offers access to traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP IRAs, 401(k)s, and 401(k) rollovers. Plus, individuals with dependents can open trust accounts, education savings accounts, and UGMA/UTMA custodial accounts.
Finally, Vanguard offers several market analysis resources, and it provides an entire library of expert guides and insights on all things investing. The Vanguard mobile app is available on both iOS and Android devices.
Read Personal Finance Insider’s complete review of Vanguard here »
Is TD Ameritrade right for you?
Like Vanguard, TD Ameritrade caters to all types of investors. Among its investment products are self-directed brokerage accounts, retirement accounts, managed and automated investing accounts, education savings accounts, and more. Charles Schwab acquired TD Ameritrade in October 2020, so the brokerage has merged many of its products with Schwab, but it still offers some separate products and services.
If you’re an active trader looking to save money while investing on your own, this brokerage could be a great choice. It also offers commission-free stocks, ETFs, and options. While Vanguard charges $1 per options contract, TD Ameritrade’s options contracts only cost $0.65.
In addition, its investment selection includes bonds, mutual funds, futures, annuities, IPOs, foreign investments (Forex), and other fixed income securities. And research-oriented investors will have access to Morningstar investment analysis, stock charts, securities screeners, and much more (see its complete suite of tools here).
TD Ameritrade also had accounts for hands-off investors (Selective Portfolios and Personalized Portfolios), but they’re no longer available to new clients. The brokerage redirects new clients to Schwab’s automated investing accounts, giving them the choice of Schwab Intelligent Portfolios or Schwab Intelligent Portfolios Premium.
When it comes to retirement accounts, the brokerage currently offers traditional IRAs, Roth IRAs, solo 401(k)s, SEP IRAs, SIMPLE IRAs, and pension or profit plans. Each account is devoid of account minimum requirements or maintenance fees.
TD Ameritrade outshines Vanguard when it comes to trading platforms. Its current suit of products — thinkorswim desktop, thinkorswim web, mobile trading, and the web platform — all give investors more flexibility when trading.
TD Ameritrade’s app is available on both iOS and Android devices.
Read Personal Finance Insider’s complete review of TD Ameritrade here »
Vanguard vs. TD Ameritrade — Frequently asked questions (FAQ)
Both brokerages support traders and investors of all types, but Vanguard is the better platform for retirement-focused users in search of competitive mutual funds and ETFs. TD Ameritrade is a stronger choice for options traders, and it also better suits active traders who value a vast range of trading platforms and tools.
Vanguard’s platforms are limited to its web interface and mobile apps. In addition, options contracts cost $1 each.
TD Ameritrade’s managed portfolios are no longer available to new clients, so you’ll have to set up an account with Schwab if you’re in search of portfolio management. In addition, the brokerage doesn’t offer fractional shares.
Top Offers From Our Partners
Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Vanguard vs. TD Ameritrade: The biggest differences
Compare Vanguard and TD Ameritrade
-
Vanguard
-
TD Ameritrade investment account
0% (0.20% to 0.30% for automated and professionally managed portfolios)
Editor’s Rating
Stocks, ETFs, options, bonds, mutual funds, and CDs
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Editor’s Rating
Stocks, ETFs, options, mutual funds, futures, forex, IPOs, and bonds
Vanguard and TD Ameritrade offer a wide array of account types and investment choices for both active traders and passive investors. However, the platforms differ when it comes to fees, features, and investment choices.
Overall, Vanguard is the better choice for retirement investing. It offers multiple types of low-cost mutual funds (e.g., all-in-one retirement funds, index funds, and admiral share funds) that the brokerage itself manages, and its selection of retirement planning resources is hard to beat.
TD Ameritrade best suits active traders who want a wider variety of platforms and tools to utilize when making investment decisions. In addition to its web platform, it offers the thinkorswim web and desktop platforms for more advanced traders, and its options contract price ($0.65) is cheaper than Vanguard’s ($1).
Account Minimum
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)
Fees
0% (0.20% to 0.30% for professionally managed portfolios)
Investment Types
Stocks, ETFs, options, bonds, mutual funds, and CDs
Account Minimum
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)
Fees
0% (0.20% to 0.30% for professionally managed portfolios)
Investment Types
Stocks, ETFs, options, bonds, mutual funds, and CDs
Details
Account Minimum
$0 ($3,000 for Vanguard Digital Advisor; $50,000 for Vanguard Personal Advisor Services)
Fees
0% (0.20% to 0.30% for professionally managed portfolios)
Pros & Cons
Highlights
Additional Reading
TD Ameritrade investment account
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Investment Types
Stocks, ETFs, options, mutual funds, futures, forex, IPOs, and bonds
TD Ameritrade investment account
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Investment Types
Stocks, ETFs, options, mutual funds, futures, forex, IPOs, and bonds
On TD Ameritrade’s website
Details
Account Minimum
$0 ($5,000 or $25,000 for managed accounts through Schwab)
Fees
0% ($300 one-time fee and $30/month for advisor-managed account through Schwab); $49.95 or $74.95 for no-load mutual funds, $2.25 per futures contract, and $0.65 per options contract
Pros & Cons
Highlights
Additional Reading
Vanguard and TD Ameritrade’s features and account options also vary.
Is Vanguard right for you?
Founded in 1975, Vanguard is an online brokerage offering self-directed individual and joint accounts, automated investing portfolios, IRAs, small business retirement plans, education savings accounts, and much more. The platform also stands out due to its zero-commission stock, ETF, and options offerings.
When it comes to Vanguard’s other investment types, you’ll have the choice of mutual funds, bonds, international investments, and CDs. Most of the brokerage’s actively managed mutual funds have a $3,000 minimum, but you’ll only need $1,000 for investor shares in Vanguard Target Retirement Funds and the Vanguard Star Fund.
While Vanguard’s ETFs and options are generally commission-free, its ETFs still have a 0.6% average expense ratio, and options contracts cost $1 each. You’ll run into additional fees if you use either of its automated portfolios.
The first — and cheapest — option Vanguard offers for automated portfolio management is Vanguard Digital Advisor. You’ll be responsible for a $3,000 minimum and 0.20% annual fee, but you get access to a personalized portfolio of Vanguard ETFs that the platform allocates based on your investing preferences.
Its other automated investing account, Vanguard Personal Advisor Services, offers something more: one-on-one advisor guidance. This means you’ll have both computer algorithms and a Vanguard fiduciary advisor working on your behalf. This account comes with a $50,000 minimum and a 0.30% annual fee.
On the retirement side, Vanguard offers access to traditional IRAs, Roth IRAs, SIMPLE IRAs, SEP IRAs, 401(k)s, and 401(k) rollovers. Plus, individuals with dependents can open trust accounts, education savings accounts, and UGMA/UTMA custodial accounts.
Finally, Vanguard offers several market analysis resources, and it provides an entire library of expert guides and insights on all things investing. The Vanguard mobile app is available on both iOS and Android devices.
Read Personal Finance Insider’s complete review of Vanguard here »
Is TD Ameritrade right for you?
Like Vanguard, TD Ameritrade caters to all types of investors. Among its investment products are self-directed brokerage accounts, retirement accounts, managed and automated investing accounts, education savings accounts, and more. Charles Schwab acquired TD Ameritrade in October 2020, so the brokerage has merged many of its products with Schwab, but it still offers some separate products and services.
If you’re an active trader looking to save money while investing on your own, this brokerage could be a great choice. It also offers commission-free stocks, ETFs, and options. While Vanguard charges $1 per options contract, TD Ameritrade’s options contracts only cost $0.65.
In addition, its investment selection includes bonds, mutual funds, futures, annuities, IPOs, foreign investments (Forex), and other fixed income securities. And research-oriented investors will have access to Morningstar investment analysis, stock charts, securities screeners, and much more (see its complete suite of tools here).
TD Ameritrade also had accounts for hands-off investors (Selective Portfolios and Personalized Portfolios), but they’re no longer available to new clients. The brokerage redirects new clients to Schwab’s automated investing accounts, giving them the choice of Schwab Intelligent Portfolios or Schwab Intelligent Portfolios Premium.
When it comes to retirement accounts, the brokerage currently offers traditional IRAs, Roth IRAs, solo 401(k)s, SEP IRAs, SIMPLE IRAs, and pension or profit plans. Each account is devoid of account minimum requirements or maintenance fees.
TD Ameritrade outshines Vanguard when it comes to trading platforms. Its current suit of products — thinkorswim desktop, thinkorswim web, mobile trading, and the web platform — all give investors more flexibility when trading.
TD Ameritrade’s app is available on both iOS and Android devices.
Read Personal Finance Insider’s complete review of TD Ameritrade here »
Vanguard vs. TD Ameritrade — Frequently asked questions (FAQ)
Both brokerages support traders and investors of all types, but Vanguard is the better platform for retirement-focused users in search of competitive mutual funds and ETFs. TD Ameritrade is a stronger choice for options traders, and it also better suits active traders who value a vast range of trading platforms and tools.
Vanguard’s platforms are limited to its web interface and mobile apps. In addition, options contracts cost $1 each.
TD Ameritrade’s managed portfolios are no longer available to new clients, so you’ll have to set up an account with Schwab if you’re in search of portfolio management. In addition, the brokerage doesn’t offer fractional shares.
Top Offers From Our Partners
