Platform Comparison

Tastytrade vs TD Ameritrade

Compare Tastytrade and TD Ameritrade on fees, DRIP, fractional shares and research for dividend investing.

TT

Tastytrade

★4.4

The options-focused platform with low contract fees, excellent education, and DRIP support—ideal for dividend investors using covered call strategies.

Full Review
Higher Rated
TD

TD Ameritrade

★4.7

The legendary thinkorswim platform lives on under Schwab. All TD Ameritrade accounts have been migrated—new customers should open a Schwab account directly.

Full Review

Tastytrade vs TD Ameritrade: Fees, Minimums & DRIP Compared

FeatureTastytradeTD Ameritrade
Our Rating4.4/54.7/5
Trading Commissions$0N/A
Account MinimumN/AN/A
Fractional SharesYes ($5 min)N/A
DRIPFreeVia Schwab
Research ToolsBasicGood
Best ForCovered Call WritersFormer TD Ameritrade Customers

Tastytrade vs TD Ameritrade: Pros and Cons

Tastytrade

Pros

  • + Commission-free stock and ETF trading
  • + Low options pricing: $1 to open, $0 to close (capped at $10/leg)
  • + Fractional shares available for purchases and DRIP
  • + Free dividend reinvestment program
  • + Exceptional options education and content

Cons

  • - Very low 0.01% interest on uninvested cash
  • - No mutual funds, bonds, or forex trading
  • - Higher-than-average margin rates
  • - Steep learning curve for beginners

TD Ameritrade

Pros

  • + thinkorswim platform retained and integrated into Schwab
  • + All former TD Ameritrade accounts successfully migrated
  • + Commission-free trading continues under Schwab
  • + 400+ technical analysis tools in thinkorswim
  • + Trading simulator for practice without risk

Cons

  • - TD Ameritrade no longer accepts new accounts
  • - TD Ameritrade API permanently shut down
  • - Some interface changes during Schwab transition
  • - Former TD-only features may differ slightly

Which Is Better for Dividend Investors: Tastytrade or TD Ameritrade?

Choose Tastytrade if you...

  • Are in Tastytrade's core audience: covered call writers

Choose TD Ameritrade if you...

  • Are in TD Ameritrade's core audience: former td ameritrade customers
  • Prefer a higher-rated overall platform

Want the full breakdown of fees, DRIP, and research tools? Read our Tastytrade review and TD Ameritrade review.

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Investment Disclaimer

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.