Thinkorswim vs Charles Schwab: Commissions and Investments Offered
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- Stocks and ETFs flat-rate plan: $9.95 per trade on market or limit orders, 5,000 shares maximum
- Stocks and ETFs per-share plan: $0.015 per share, $5 minimum
- OTCBB (Pink Sheets): $9.99 for any stock trade regardless of size or order type for stocks $2 or less
- Options: the lesser of $2.95 per contract OR $1.50 per contract plus $9.95 (only one $9.95 charge for unlimited spread legs)
- Mutual funds: first three mutual fund trades in calendar month are free; $15 per trade after that
- Bonds: up to 6 months maturity - $1 per bond
- Over 6 months up to 1 year maturity: $1.50 per bond
- Over 1 year maturity: $2 per bond
- Listed Bonds: $1.5 per bond additional
- Treasuries: minimum order is $25,000 ($25 minimum commission)
- All other bonds: minimum order is for 10 bonds ($25 minimum commission)
- Futures: $3.50 per contract (inclusive of exchange fees)
- Options on Futures: $3 per contract (inclusive of exchange fees)
- Investment products: stocks, options, mutual funds, bonds, T-Bills, futures, forex, ETFs
- Minimum to open Thinkorswim account: $3,500
- All Thinkorswim fees
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- Stocks and ETFs: $8.95
- Stocks and ETFs broker assisted: $33.95
- Stocks and ETFs phone trades: $13.95
- Options: $8.95 plus $0.75 per contract
- Mutual funds: $49.95. Mutual Fund OneSource® Funds - free
- CDs, Corporate Bonds, Municipal Bonds, Government Agencies, Zero-Coupon Treasuries, including STRIPS and Mortgage-Backed Securities: $1 per bond, $10 minimum, $250 maximum
- Preferred Stocks and REITs: $8.95
- Commercial Paper and Foreign Bonds, Unit Investment Trusts: call for pricing
- Investment products: stocks, bonds, mutual funds, futures, treasury issues, options, CDs, insurance, ETFs,
annuities, non-U.S. securities and ADRs, WEBs and Canadian foreign orders
- Minimum to open Charles Schwab account: $1,000
- All Charles Schwab fees
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- Powerful trading platform, good risk management tools
- Lots of investment products to choose from
- No IRA fees
- Great customer service
- Virtual trading
- No surcharge for placing trade through broker
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- Traditional banking features: credit cards and checking accounts
- Around 300 offices for personal visits, deposits and 24/7 support
- Great, varied research
- Rich selection of investment products
- Low minimum balance requirement: $1,000
- Excellent customer service
- Free dividend reinvestment
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- High stock commissions
- In flat-fee plan there is additional charge of $0.005 per share on every share above 5,000
- All order types other than limit, marketable limit, and market orders will be charged per share rates
- Might be too complicated for beginner investors
- Browser trading is very slow
- High margin rates
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- High commissions on stocks, options, mutual funds and ETFs
- Average trading tools
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Charles Schwab vs Thinkorswim: Comparison Summary
Charles Schwab (Charles Schwab Review) and
Thinkorswim (Thinkorswim Review)
are very similarly priced: $8.95 for stock/ETF trade at Charles Schwab
and $9.95 at Thinkorswim.
Both brokerage companies don't have maintenance or inactivity fees. Unlike many other online brokers, they also have no surcharges
on penny stocks and extended hours trading. Charles Schwab doesn't charge more on large orders, but Thinkorswim has an additional
commission of $0.005 per share on every share above 5,000 (that makes large-size and penny stock orders very expensive).
Both brokerage houses provide excellent customer service and, in case of
Thinkorswim, powerful, versatile trading tools. Thinkorswim also offers free virtual
trading where investors could test different trading strategies and improve their skills without risking their money.
Charles Schwab is primarily targeting buy-and-hold and IRA investors and is not well-suited for people who trade frequently.
Thinkorswim's customer base is very active traders and day-traders.
Both investment firms have commissions that are higher than average in the industry. We see no good reasons to
overpay brokerage company -- there are many better priced and highly-rated
Online Brokerage Houses to choose from. We also suggest taking a look at our
Top 5 Brokerage Firms article.
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