Platform Comparison

TD Ameritrade vs Vanguard

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

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
VG

Vanguard

★4.6

The pioneer of low-cost index investing with industry-leading expense ratios and a legendary reputation for putting investors first.

Full Review

TD Ameritrade vs Vanguard: Fees, Minimums & DRIP Compared

FeatureTD AmeritradeVanguard
Our Rating4.7/54.6/5
Trading CommissionsN/A$0
Account MinimumN/A$0
Fractional SharesN/AETFs only
DRIPVia SchwabFree
Research ToolsGoodBasic
Best ForFormer TD Ameritrade CustomersIndex Fund Investors

TD Ameritrade vs Vanguard: Pros and Cons

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

Vanguard

Pros

  • + Industry-leading low expense ratios (average 0.037%)
  • + Commission-free trading on all stocks and ETFs
  • + Excellent order execution quality (99.10%) with no payment for order flow
  • + Free dividend reinvestment for stocks, ETFs, and mutual funds
  • + Legendary reputation and client-owned structure

Cons

  • - No fractional shares for individual stocks (ETFs only)
  • - Outdated website and mobile app interface
  • - Customer service has long wait times and mixed reviews
  • - Basic research and trading tools compared to competitors

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

Choose TD Ameritrade if you...

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

Choose Vanguard if you...

  • Are in Vanguard's core audience: index fund investors

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