Compare Fidelity and TD Ameritrade on fees, DRIP, fractional shares and research for dividend investing.
Updated August 26, 2026
Important update: TD Ameritrade no longer exists as a standalone brokerage. All TD Ameritrade accounts were migrated to Charles Schwab, with the transition completed in May 2024. You can no longer open a TD Ameritrade account — this comparison is now effectively Fidelity vs Schwab, with one big exception: thinkorswim, TD’s renowned trading platform, lives on at Schwab.
For dividend investors deciding today, the real question is Fidelity’s complete package — automatic DRIP, unrestricted fractional shares, industry-best research — against Schwab’s customer service and the thinkorswim platform that former TD Ameritrade users love.
For a Roth IRA, the two are closer than the headline ratings suggest. Both open with a $0 minimum, charge $0 commissions, and reinvest dividends free inside the IRA — where the tax-free growth makes DRIP compounding especially valuable. Fidelity’s edge is that automatic DRIP is on from day one and fractional shares from $1 put every contribution to work immediately; at Schwab you must switch DRIP on per position, and Stock Slices only cover S&P 500 stocks. Beginners get more hand-holding at Schwab — 24/7 phone support and 400+ branches — while Fidelity’s platform can feel busy at first but has more room to grow into.
The gold standard for dividend investors seeking zero commissions, exceptional research, and automatic DRIP.
The legendary thinkorswim platform lives on under Schwab. All TD Ameritrade accounts have been migrated—new customers should open a Schwab account directly.
| Feature | Fidelity | TD Ameritrade |
|---|---|---|
| Our Rating | 4.9/5 | 4.7/5 |
| Trading Commissions | $0 | N/A |
| Account Minimum | $0 | N/A |
| Fractional Shares | Yes | N/A |
| DRIP | Automatic | Via Schwab |
| Research Tools | Excellent | Good |
| Best For | Long-Term Dividend Investors | Former TD Ameritrade Customers |
Want the full breakdown of fees, DRIP, and research tools? Read our Fidelity review and TD Ameritrade review.
For dividend investing specifically, Fidelity wins: automatic DRIP, fractional shares on thousands of stocks (Schwab limits Stock Slices to the S&P 500), and unbeatable research. If you’re a former TD Ameritrade user attached to thinkorswim, staying with Schwab is perfectly reasonable — it’s a 4.8-rated brokerage. But anyone starting fresh for dividends should start at Fidelity.
Related: Fidelity vs Charles Schwab · TD Ameritrade vs Wealthfront
Charles Schwab acquired TD Ameritrade and completed the account migration in May 2024. TD Ameritrade no longer operates as a separate brokerage, but its thinkorswim trading platform is now available free to Schwab customers.
Only if you want Fidelity’s specific advantages: automatic DRIP, fractional shares beyond the S&P 500, and stronger dividend research tools. If thinkorswim is central to how you trade, it only exists at Schwab — switching means giving it up.
Fidelity edges it out for dividend investors. Both offer $0 commissions and free DRIP, but Fidelity allows fractional purchases of thousands of stocks while Schwab’s Stock Slices covers only S&P 500 companies. Fidelity’s dividend research and screeners are also best-in-class.
No. New investors who want the TD Ameritrade experience — particularly thinkorswim — should open a Charles Schwab account, which includes thinkorswim for free.
Not sure these are the right fit? Explore more comparisons.
Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.