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Charles Schwab vs OptionsXpress



OptionsXpress vs Charles Schwab: Commissions and Investments



OptionsXpress


Charles Schwab

  • Stocks and ETFs: $8.95
  • Options (active traders): $12.95 for up to 10 contracts, $1.25/contract for over 10 contracts
  • Options (non-active traders): $14.95 for up to 10 contracts, $1.50/contract for over 10 contracts
  • Mutual Funds: $9.95
  • Bonds: $5 per bond, $9.95 minimum
  • Futures: 1-40 contracts $6.99; 41-100 contracts $5.99; 101-300 contracts $4.99; 301-1,000 contracts $3.99; 1,001 + contracts $2.99
  • Options on Futures: 1-40 contracts $12.99; 41-100 contracts $8.99; 101-300 contracts $7.99; 301-1,000 contracts $6.99; 1,001 + contracts $5.99
  • Covered Calls: $22.90 up to 10 contracts
  • Penny Options: 1-10 contracts $4.95 flat; 10 + $0.50/contract
  • Spreads, Straddles & Combos: 2-10 contracts - $12.95 Flat (active traders) $14.95 Flat (non-active traders); 10 + contracts - $1.25/contract (active traders); $1.50/contract (non-active traders)
  • Investments: stocks, options, mutual funds, bonds, futures, options on futures, covered calls, ETFs
  • Minimum to open OptionXpress account: $0 for cash account, $2,000 for margin account
  • All OptionXpress fees

  • 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




OptionsXpress vs Charles Schwab: Pros



OptionsXpress


Charles Schwab

  • Best customer service
  • Many well-designed trading tools and cutting-edge trading technology
  • Free streaming quotes
  • $100 bonus for opening new account
  • No fee IRA accounts
  • Great research
  • Free paper trading
  • No money down to open new account
  • Free account transfers
  • Free instructor lead online classes
  • Free broker-assisted trading
  • Free dividend reinvestment (contact customer service)
  • No platform fees

  • 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




OptionsXpress vs Charles Schwab: Cons



OptionsXpress


Charles Schwab

  • Higher than average commissions on stocks and ETFs

  • High commissions on stocks, options, mutual funds and ETFs
  • Average trading tools




Charles Schwab vs OptionsXpress: Comparison Summary



OptionsXpress (OptionsXpress Review) and Charles Schwab (Charles Schwab Review) are very similarly priced for stocks and ETFs: $8.95 per trade. Charles Schwab, however, charges much more for mutual funds: $49.99 versus $14.95 at OptionsXpress.

OptionsXpress and Charles Schwab have similar levels (very high) of customer service, trading tools and research. OptionsXpress also provides free virtual trading, which allows users to practice various trading strategies without risking real money. Customers could open account at the firm and give it a try with no money down.

If you are a beginner at investing, you will be better off with OptionsXpress: very easy to use trading technology, free broker-assisted trading and plenty of learning materials, including instructor-lead online classes. Also, check out our Best Online Brokers for Beginners recommendations.

Both companies don't have account maintenance fees, IRA setup and annual IRA fees, and surcharges on penny stocks (stocks under $1). We rated OptionsXpress as one of the Best IRA Brokers.

Out of these two online brokerage companies, OptionsXpress would be our recommendation to all investors.

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