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Charles Schwab vs TradeKing
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Charles Schwab vs TradeKing: Trading Fees and Investments
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- Stocks and ETFs: $4.95 (for stocks/etfs priced over $1)
- Options: $4.95 plus $0.65 per contract (for up to 8 contracts) OR $8.95 plus $0.15 per contract (for over 8 contracts)
- Short options valued at 5 cents or less, can be bought to close these positions for no charge (commission free)
- Multiple legs will only be charged one base price of either $4.95 or $8.95, depending on how many total contracts are involved
- Mutual Funds: $9.95
- Bonds: $4.95 per bond ($14.95 minimum)
- Treasuries: $24.95 per transaction
- Certificates of Deposit (CDs): $24.95 per transaction
- Investments: stocks, options, mutual funds, bonds, CDs, treasuries, ETFs
- Minimum to open TradeKing account: $0
- All TradeKing 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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- Great commissions
- No minimums, maintenance or hidden fees
- Free real time quotes
- Award-winning trading tools
- Best rated customer service
- Low margin rates
- Best online investor community
- Fee-free IRAs
- Extensive educational resources
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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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- Additional $0.01 per share on the entire order of stocks priced less than $1
- $50 annual inactivity fee if BOTH apply to an account(s):
- Combined account value of the household account(s) is less than $2,500
- No commission-charged trades have been executed in the account(s) during the last 12 months
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- High commissions on stocks, options, mutual funds and ETFs
- Average trading tools
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Charles Schwab vs TradeKing: Comparison Summary
TradeKing (TradeKing Review) offers much lower
commissions than
Charles Schwab (Charles Schwab Review):
$4.95 versus $8.95 per trade on stocks and ETFs, and $9.95 versus $49.95 on mutual funds transactions.
TradeKing, however, has a $0.01 per share surcharge on penny stocks.
Both Charles Schwab and TradeKing don't charge maintenance fees, IRA account setup and annual IRA fees.
The firms also do not have higher commissions on large size orders and extended hours trading.
TradeKing is one of the best brokers for new investors:
offering lots of learning materials, great online trader community and no additional charge for broker-assisted trading.
TradeKing easily outclasses Charles Schwab in trading tools (for which it got rewards) and we rated it one of the
Best Online Brokerage Companies in 2012.
We definitely recommend TradeKing over Charles Schwab to all investors.
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