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Charles Schwab vs TradeZero (2025)
Charles Schwab or TradeZero—which is better? Compare margin accounts, online trading fees,
stock broker extended hours, and differences.
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Schwab vs. TradeZero Introduction
Schwab and TradeZero both have powerful trading tools and resources for active traders to consider.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
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$0.65 per contract
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$0
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$0
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TradeZero
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$0
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na
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$0.59 per contract
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$0
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na
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Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
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Charles Schwab
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TradeZero
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Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
TradeZero:
Trade stocks, options & ETFs for free.
Tradable Products
TradeZero offers trading in stocks, options, ETFs, and closed-end funds. No other assets are available, and its crypto service has been discontinued.
Schwab has everything TradeZero provides plus annuities, futures, bonds, and mutual funds. It also enables trading on some foreign stock exchanges.
Schwab (unlike TradeZero) also has advisory accounts for managed investing.
Winner: Schwab
Margin
Both broker-dealers in this comparison strive to offer advanced trading experiences, so they each provide margin accounts. Currently, Schwab’s margin rates fall between 12.575% and 10.825%. TradeZero skips a tiered schedule and charges a flat 9%.
Winner: TradeZero
Computer Trading
Schwab has multiple platforms for computer-based trading. The first is its main website, which is simple but includes solid trading and research features: an order ticket with trailing and stop orders, a specialized options ticket, and pdf reports from various analysts.
A browser platform goes a step further, offering more advanced charting (technical studies, drawing tools, and full-screen mode).
Finally, Schwab has a desktop system with even greater capabilities, including a practice mode for extra training.
TradeZero also has multiple computer-based platforms. However, the more advanced ones require a monthly fee ($59). ZeroPro, its top-level desktop program, has features like custom layouts, options trading, and hotkeys.
TradeZero’s free computer platform is ZeroFree, which reduces features considerably. For instance, there aren’t any alerts or options tools, and you only get 1 Level II window. Hotkeys are available but cost $15 monthly.
Winner: Schwab
Mobile Apps
Neither Schwab nor TradeZero charges a monthly fee for its mobile app. Schwab actually has two. One focuses on futures trading. Together, they deliver many tools, such as live CNBC, market news and analyst research, dedicated order forms for options and mutual funds, and more.
Schwab’s primary app has better charts, with vertical and horizontal modes plus numerous tools:
7 chart styles
Major company events
30 technical studies
A feature on TradeZero’s app that Schwab doesn’t offer is a short-locate tool. Locates can be allocated in real time. Other TradeZero app features include news, watchlists, and charting with indicators. Right now, however, options trading is not possible on the TradeZero app, which we see as a serious limitation. Schwab’s apps permit multi-leg options (pre-built or custom).
Winner: Schwab
Day Trading
TradeZero has a sister company in the Bahamas offering accounts exempt from FINRA day-trading requirements (including the $25,000 rule). Additional points for day traders include:
Leverage: Schwab and TradeZero America permit up to 4:1. TradeZero Bahamas can extend up to 6:1 on balances above $2,500.
Direct Access to Venues: Both brokers support direct-access routing.
Extended-hours Trading: Provided at both firms. Schwab’s futures trade 24/6.
Level II Quotes: Offered at both.
PDT Status: TradeZero, but not Schwab, shows how many trades remain until pattern-day-trading status triggers. You can find the tracker on its website.
Maker-Taker Fees: TradeZero uses this structure.
Shorting: Both brokers allow short selling. TradeZero has a short-locate tool.
Winner: TradeZero
Extra Services
Initial Public Offerings: Schwab only.
Fractional-share Trading: Schwab clients can buy fractions of S&P 500 stocks.
IRA Service: Schwab offers individual retirement accounts; TradeZero does not.
Automatic Mutual Fund Purchases: Schwab only.
Fully-paid Securities Lending Program: Schwab alone.
DRIP Service: Also only at Schwab.
Winner: Schwab
Recommendations
Long-Term Investors & Retirement Savers: Schwab is the clear choice.
Beginners: Schwab’s robo program is a great start.
Active Stock Trading: Schwab is best for fractional shares, international stocks, and free platforms. TradeZero is better for short selling and day trading.
Mutual Funds: Only Schwab offers them.
Small Accounts: Since TradeZero needs at least $2,500, Schwab is better for lower balances.
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
TradeZero:
Trade stocks, options & ETFs for free.
TradeZero vs Schwab Verdict
TradeZero provides some very advanced trading features, while Schwab has free software and no minimums, which makes it a better deal for many investors.
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Updated on 5/16/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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