TD Ameritrade Vs Devenir: Both Good HSA Brokers

LAST UPDATED: August 18, 2023 | By Conrad Golly
HSA concept on white background

Get ready to level up your Health Savings Account (HSA) investments! Today, we’re comparing TD Ameritrade vs Devenir, two online brokers for your HSA funds. 

HSA Bank offers the two choices for brokerage accounts, and it’s left to the clients to choose which service they prefer. The choice is often hard because you have to weigh in pros and cons, calculate the fees you’ll have to pay, and reach a decision.

Luckily for you, we can help with that! Here, we’ll help you learn about Devenir’s quarterly 0.30% fee and explore TD Ameritrade’s variety of investment options for active traders. 

Read on to discover which one suits your financial goals best.

HSA Investing With HSA Bank

HSA investing allows individuals to grow their Health Savings Account (HSA) funds through self-directed investment options. Once you have an established HSA at HSA Bank, you can explore the possibilities of HSA investing.

If you have a minimum of $1000 in your bank account, you can start investing, but you’ll have to keep the account’s balance on the rise. Otherwise, you’ll be subject to a maintenance fee if your account’s balance is less than $3000.

What a lot of people don’t know is that you can have a separate investment account that ties back to your HSA Bank account. In other words, you can invest and set money aside using a separate brokerage account, while enjoying the security of your HSA Bank account.

To withdraw money from your brokerage account, you’ll have to do it by transferring said money to or from your HSA Bank account. It may be a bit of a hassle, but what’s an investment without some additional tasks?

Close-up of a man holding bank notes

For your brokerage account, HSA Bank offers two options: TD Ameritrade and Devenir. Both are online brokerage services that offer similar facilities for investors. However, there are some differences that may make or break your decision, and we’ll discuss them below.

By leveraging the HSA investing options available with HSA Bank, you can maximize the potential of your Health Savings Account and work towards securing your financial future.

An Overview of Ameritrade

TD Ameritrade stands out as a premier online brokerage, catering to active traders with its diverse investment options. This platform boasts an extensive array of assets, including stocks, bonds, ETFs, and mutual funds.

For beginners, TD Ameritrade proves to be an excellent choice, particularly for active traders, due to its low to no fees and no minimum balance requirements. A substantial portion of their mutual funds comes with no transaction fees, appealing to those seeking to minimize expenses on such investments.

With a $0 account minimum and free commissions on stock, ETF, and option trades, TD Ameritrade offers accessibility and affordability to users. Their expansive investment selection and wealth of research and educational resources further enhance the trading experience.

However, it’s worth noting that TD Ameritrade lacks fractional shares. There are rumors that it’ll start offering them after Charles Schwab acquired the online brokerage, but nothing is announced still.

One more downside of TD Ameritrade is that cryptocurrency enthusiasts won’t find support for digital assets on the platform. Despite these limitations, TD Ameritrade remains an attractive choice for active traders seeking diverse investment opportunities.

An Overview of Devenir

Devenir has been at the forefront of providing investment solutions for health-based accounts since the establishment of tax-advantaged accounts in 2004. 

Investment advisor consulting with her team

Today, Devenir maintains its position as a leader in the rapidly expanding HSA market. The online brokerage takes pride in being recognized nationally for its HSA investment leadership and innovative research within the industry. Financial institutions, banks, administrators, and leading healthcare technology providers rely on Devenir as their trusted investment partner.

Devenir offers consumer-tested tools and education that simplifies investing for everyone. However, it’s not the first choice for HSA investments. Let’s see why.

TD Ameritrade Vs Devenir: Which Broker Should You Choose?

When considering TD Ameritrade vs. Devenir, a lot of people lean toward TD Ameritrade due to Devenir’s comparatively higher fees. 

Devenir’s Mutual Fund Investment Account imposes an annual fee of 0.30%, which is charged quarterly and amounts to $0.75 per $1,000 based on the account’s valuation at the end of each quarter. 

You don’t have to worry much because the fee is evaluated only based on the first $50,000 you deposit in your account. However, it’s not the only fee you’ll pay. 

You’ll also have to pay a quarterly fee that’s not percentage-based like this one. It varies according to your account, but it starts from $1.50.

One more downside to Devenir is its liquidation policies. According to their rules, if your account balance falls below the minimum of $1.50 when it’s time to take the fee, Devenir has the right to liquidate your balance.

That’s why TD Ameritrade stands out as the more popular choice, offering a wide range of educational content in various formats, expansive trading tools and resources for all types of investors, a well-designed mobile app and website, and excellent client support. 

Broker handshaking with his client in an office. TD Ameritrade Vs Devenir

TD Ameritrade caters to active traders, providing multiple trading platforms, secure asset storage, and access to low-cost mutual funds, making it an ideal option for those interested in futures trading. However, it’s worth noting that TD Ameritrade lacks fractional shares and direct crypto trading.

TD Ameritrade Vs Devenir: The Final Verdict

In conclusion, after a thorough examination of TD Ameritrade and Devenir as brokers for HSA investments, TD Ameritrade emerges as the stronger contender, and it’s seemingly the more popular option among investors.

With a wide array of investment options, low to no fees, and solid client support, TD Ameritrade proves to be an excellent choice for active traders and beginners alike. 

While Devenir offers valuable services, its 0.30% annual fee and limited investment options may deter some investors. It also demands a quarterly fee.

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Conrad Golly

Conrad Golly

I’m Conrad, a retired first responder turned successful Tyapreneur with a passion for real estate, family, and business acquisitions. With a focus on growing online ventures, I bring a wealth of experience to the world of entrepreneurship. I write on investing, personal finance, family life, and business strategies, inspiring others to achieve their goals.