TD Ameritrade vs. Webull [2024]: With $0 Fees and No Minimums, Which is Better?

There are many brokerages out there, but two that stand out are TD Ameritrade and Webull. TD Ameritrade has been around for decades and is one of the earliest discount stock brokers. Webull is a newer brokerage specializing in making trading easy and accessible.

TD Ameritrade can be a better fit for experienced traders thanks to a host of advanced tools, whereas Webull is a better fit for new investors who want a simple platform. Let’s compare TD Ameritrade versus Webull to help you decide the one that works best for you.

TD Ameritrade vs. Webull

Both TD Ameritrade and Webull offer commission-free trading and a variety of features that can be useful when you’re learning how to invest money.

Minimum investment	$0	$0
Trading fees	$0 commission fees for stocks, ETFs, and options	$0 commission fees for stocks, ETFs, and options
Account types available	Taxable accounts Retirement accounts Education savings accounts Specialty accounts (trusts, pension plans, and more) Margin accounts	Taxable accounts Retirement accounts Margin accounts
Asset classes	Stocks ETFs Mutual funds Bonds IPOs Options Futures Forex	Stocks ETFs IPOs Options Cryptocurrencies
Features	Independent research Access Paper trading IPO access 24/5 trading on select assets Educational sources	Paper trading IPO access Educational sources Fractional shares Crypto wallet
Best for...	Intermediate to advanced traders who want access to in-depth research and 24-hour trading five days per week	Beginner to intermediate traders who want access to fractional shares and cryptocurrencies
	Visit TD Ameritrade	Visit Webull

How does TD Ameritrade work?

TD Ameritrade has been around since 1975 and was one of the first brokerages to offer paperless account opening and online broker services.

TD Ameritrade got rid of commission fees for trading stocks, exchange-traded funds (ETFs), and mutual funds in 2019. The brokerage also eliminated account minimums to make its accounts accessible to everyone. Keep in mind that although TD Ameritrade doesn’t charge trading fees, ETFs and mutual funds often charge certain fees, and some mutual funds may have minimum investment requirements.

TD Ameritrade also offers commission-free options trading, but there is a 65-cent per-contract fee. Futures trading and currency exchange on the foreign exchange market (forex) are also available but have separate fees.

You can also access initial public offerings (IPOs) with TD Ameritrade. IPOs represent the first time a company lists shares on the stock market. In certain cases, TD Ameritrade can offer you shares of companies that have IPOs. However, you need to call to be on a list to access these shares.

TD Ameritrade uses an advanced trading platform called thinkorswim. The platform offers many features including PaperMoney, a practice account that uses fake money to allow you to test investing strategies. The platform also gives you 24/5 trading access, which enables you to invest any time, 24-hour a day, from Sunday, 8 p.m. ET until Friday, 8 p.m. ET.

One thing that is missing on TD Ameritrade is cryptocurrency. You can’t trade cryptocurrencies directly but you can access ETFs, mutual funds, and futures involving them.

Using TD Ameritrade is reasonably straightforward. You can search for the asset you want to purchase and create an order with a few clicks using the thinkorswim platform. The platform is available in a web version, desktop software, and mobile apps for Android and iOS.

Read our TD Ameritrade review for more information.

How does Webull work?

Webull was founded in 2017 and is owned by Fumi Technology, a fintech company based in China. Webull is officially listed as a brokerage in the U.S. as Webull Financial LLC, which is registered with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull doesn’t charge commission fees on stocks, ETFs, or options. However, there are can fees built into the system, including ETF management fees and per-contract option fees up to 58 cents.

Webull enables you to buy fractional shares representing a portion of stock instead of buying a full share. Additionally, you can open a paper trading account, which is a practice account that allows you to test different strategies without risking your money.

Webull also offers cryptocurrency trading with a $1 minimum trade requirement. There are more than 40 cryptocurrencies available for trade with Webull, including bitcoin and ethereum. You can store your cryptocurrencies on a crypto wallet that Webull has.

You can access the IPO market via Webull. You can simply place an order to buy an IPO stock on the platform as long as you have a $100 minimum account balance. Note that placing an order is an indication of your interest and doesn’t guarantee your order will be fulfilled.

Webull makes it easy to track different markets and view price charts of popular cryptocurrency trading pairs. You can also quickly see best-performing industries, view top stock performers, and even access a calendar of dividend dates and other important events.

Read our Webull review to learn more.

What both investment services excel at

TD Ameritrade and Webull share several features. Both platforms:

• Charge zero commission fees when you trade trading for stocks, ETFs, and options
• Offer taxable investment accounts and tax-advantaged retirement accounts
• Have margin accounts that allow you to borrow money to trade after adding a minimum deposit of $2,000

Additionally, both TD Ameritrade and Webull can help you expand your knowledge and experience. The two brokerages give you:

• Access to educational content and analysis tools that can help you better understand investing and learn different strategies
• Access to paper trading, which are practice trading accounts where you can test your strategies without using actual money

That’s why both TD Ameritrade and Webull could be appropriate for investors of all skill and experience levels.

5 important differences between TD Ameritrade and Webull

Depending on your needs and investment strategy, you may find that TD Ameritrade or Webull is a better fit for your needs. Both platforms are among the best brokerage accounts, but there are five important differences between them.

1. Access to cryptocurrencies

If you want a brokerage that gives you access to cryptocurrencies as well as stocks and ETFs, you may prefer Webull. You can buy and sell more than 40 cryptocurrencies via Webull, and the platform also has its own crypto wallet where you can store your currencies.

On the other hand, TD Ameritrade doesn’t offer direct access to cryptocurrency trading. Instead, you can buy financial assets that may include cryptocurrencies in one form or another, such as ETFs, mutual funds, and futures. TD Ameritrade doesn’t offer a crypto wallet because it doesn’t offer cryptocurrencies.

Winner: Webull gives you access to more than 40 cryptocurrencies along with a crypto wallet to store them.

2. Variety of trading choices

TD Ameritrade has the edge when it comes to trading choices. In addition to offering stocks and ETFs, you can buy mutual funds and bonds. You can also trade futures and access the forex market. What TD Ameritrade lacks is access to cryptocurrencies.

Webull does offer access to cryptocurrencies, but it doesn’t offer mutual funds, bonds, futures, or forex.

Winner: TD Ameritrade offers a bigger variety of asset classes, an advantage that advanced traders may enjoy.

3. Types of accounts

Both TD Ameritrade and Webull offer taxable investment accounts and tax-advantaged retirement accounts. This is important when you want to have your retirement and regular investment accounts in the same place.

However, TD Ameritrade offers more account types, including individual trusts and education savings accounts such as 529 plans. Webull doesn’t offer these account options.

Winner: TD Ameritrade allows you to open more account types. This gives you more flexibility now and in the future with what accounts you can have.

4. Fractional shares

Webull supports fractional shares, which allows you to buy a portion of a share. Fractional shares give you the option to put smaller dollar amounts in the companies you want to invest in.

TD Ameritrade doesn’t offer fractional shares. Instead, you have to buy a full share in order to execute a trade using TD Ameritrade.

Winner: Webull allows you to invest in fractional shares without having to buy a full share of every company you invest in.

5. Advanced trading tools

TD Ameritrade offers more advanced trading tools than Webull. The thinkorswim platform is a well-developed platform available as desktop software, web-based platform, and mobile trading apps. The platform is highly customizable and enables you to execute complex trades from almost anywhere with internet.

Webull provides you with some advanced trading tools, but its trading platform isn’t as well-developed as TD Ameritrade.

Winner: TD Ameritrade has a platform that enables you, as an active trader, to execute your trades pretty much anywhere.

Which investment service should you choose?

Consider these factors when choosing between TD Ameritrade versus Webull:

• Available accounts: Pay attention to the account types each brokerage offers. TD Ameritrade offers more account types, but Webull still gives you access to taxable investment and tax-advantaged retirement accounts, which may be all you need.
• Available asset classes: Think about the asset classes you plan to invest in. Webull offers cryptocurrencies, whereas TD Ameritrade doesn’t. On the other hand, TD Ameritrade has mutual funds, bonds, futures, and forex, all of which you can’t find on Webull.
• Additional features: Focus on the features that matter to you. For example, TD Ameritrade has more advanced trading tools through its thinkorswim platform, but Webull gives you simple access to market information and calendars.

FAQs

Bottom line

Both TD Ameritrade and Webull offer different opportunities to invest and grow your wealth. However, before choosing one or the other, consider which platform better fits your present and future needs, investment style, and preferred investment products. You can also explore the best robo-advisors for a more hands-off investment style.

FinanceBuzz is not an investment advisor. This content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial, or other advice.