TD Ameritrade Promotion 2024
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Free Charles Schwab Account
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TD Ameritrade Promotion For $1,000
Fund a new TD Ameritrade account and get up to $1,000 bonus - Offer expired.
TD Ameritrade Promotion For $600
TD Ameritrade cash bonus up to $600 - Offer expired.
Comparison Introduction
Which brokerage house offers the best trading experience, Schwab or TD Ameritrade? The following
article reveals the answer.
Cost Comparison
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
12.825%
|
$0
|
$0
|
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
12.825%
|
$0
|
$0
|
Services
Promotions
TD Ameritrade: $0 commissions + transfer fee reimbursement.
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Investment Choices
With a self-directed brokerage account at Charles Schwab, it’s possible to trade stocks, options, ETF’s, fixed-income securities, futures contracts, closed-end funds, mutual funds, and annuities. TD Ameritrade has the same list but adds forex to the bunch.
Both firms also provide access to the over-the-counter marketplace, which of course carries a high degree of risk and reward. The one real difference between the two brokers here is in the realm of foreign stocks: Schwab offers global trading, whereas TD Ameritrade does not.
Moving on to managed accounts, both TD Ameritrade and Schwab have something to offer. The latter broker delivers traditionally-managed packages that start at 75 basis points per year with a $25,000 account minimum. This service trades funds only.
TD Ameritrade has discontinued its robo package, but Schwab has one. It starts at 0.00% per year with a $5,000 minimum. A hybrid system costs $30 per month but comes with one-on-one financial planning from a human being. Old-school packages are also available through Schwab.
The biggest disappointment in this category is the complete absence of cryptocurrencies at either firm.
Winner: Schwab
Websites
To trade and research available investment vehicles, both Schwab and TD Ameritrade have excellent websites.
On Schwab’s site, we found a trade bar. The gadget sits at the bottom of the screen and delivers some important trade details, such as volume and bid-ask spread. These are displayed in real-time. The biggest disappointment with the widget is that it can’t submit a trade. Rather, a trade button generates a web page with the broker’s trade ticket.
This has five order types, including limit and trailing stop. Although this number is not overly impressive, there are some other highlights on the ticket, such as instructions on how to enter an order.
TD Ameritrade’s site also has a trade bar. It occupies the same space as Schwab’s. The biggest difference is that TD Ameritrade’s tool can send orders directly to the exchanges. It also has a rapid-fire mode, a feature that’s missing on Schwab’s trade bar.
But trade bars are only part of the picture here. Alerts, watchlists, charting, and ease of navigation are other areas where brokerage websites can be judged. Both Schwab’s and TD Ameritrade’s sites receive grades of A’s in these categories.
The really important area where these two brokers differ is in browser platforms. TD Ameritrade’s site is missing one, while Schwab hits a home run with thinkorswim.
This is Schwab’s browser-based (not desktop) trading platform. During our test drive of the software, we found it very useful, especially in the realms of charting and order placement. Graphs have many tools, and the order ticket has advanced trade types, such as contingent on volume and one triggers two.
Winner: TD Ameritrade
Desktop Software
Although TD Ameritrade failed to deliver a browser platform, it most certainly does not disappoint in the desktop category. Its program is called thinkorswim, and it does require a great deal of thinking for the simple fact that it has a steep learning curve.
Features on thinkorswim that we really like include:
- Level II quotes
- Full-screen charting with hundreds of technical indicators and right-click trading
- Option tools
- Live streaming of both CNBC and TD Ameritrade Network
- Dealing boxes for futures and forex
- Backtesting tool
thinkorswim is Schwab’s desktop software. It is a little more user-friendly than thinkorswim and has a shallower learning curve. Nevertheless, it does manage to deliver a high level of trading power. During our investigation, we especially liked the following:
- Free access to Recognia and MarketEdge
- Advanced charts with right-click trading (although fewer technical studies than thinkorswim)
- Level II data
- Color-coded profit/loss diagrams (which don’t appear on thinkorswim)
Both programs have practice modes and direct-access routing, and neither one has any account minimums or trading requirements.
Winner: TD Ameritrade
Mobile Apps
Schwab and TD Ameritrade have two apps each. There is a standard mobile app and a trading app (although the standard in each case has some notable trading power on its own).
In defense of TD Ameritrade, we were immediately impressed with both its apps. The standard app has features like mobile check deposit, Level II quotes, horizontal charting, market news, and educational literature. The trading app strangely lacks Level II data but has better charting, a more advanced order ticket, and an economic calendar.
On the Schwab side, we found bill pay, mobile check deposit, and mutual fund trading (this last feature isn’t available on either TD Ameritrade app). But option chains are available only for calls and puts on the regular app. The trading app does have multi-leg strategies (and futures trading). Another highlight on the advanced app is trading suggestions, something not available on TDA’s power app.
Winner: Pretty even
Margin Accounts
A margin account can be opened at either Charles Schwab or TD Ameritrade.
Schwab’s margin scale is as follows:
$0-$25k — 12.825%
$250,000+ — 11.125%
TD Ameritrade is a little pricier:
$0-$10k — 14%
$250,000+ — 12%
Balances above $500,000 are given higher negotiated rates by both brokers.
Winner: Schwab
Extra Services
Dividend Reinvesting: Both firms provide free DRIP service to their clients.
Fractional Shares: Schwab offers whole-dollar investing in the 500 stocks that make up the S&P index. The minimum investment is $5. TD Ameritrade has no such service.
Individual Retirement Accounts: A large selection of IRA’s is on tap at either broker.
Cash Management Features: Banking tools are available at both Charles Schwab and TD Ameritrade.
Periodic Mutual Fund Investing: Both brokerage houses provide the ability to put mutual fund purchases on autopilot.
Initial Public Offerings: Early access to IPO’s can be had at either firm.
Winner: Draw
Recommendations
Mutual Fund Trading: We counted slightly less than 6,000 mutual funds at Schwab, with less
than 4,000 having no transaction fee and no load. TD Ameritrade has 13,000 and 4,400 funds respectively with comparable tools, so we lean towards it.
ETF & Stock Trading: Although this one is close, we endorse TD Ameritrade for 24/5 trading and better extended hours time. Schwab for its fractional-share trading in 500 stocks.
Small Accounts: Either will work.
Beginners: Both brokerage firms have good educational materials on their websites.
Although thinkorswim is not user-friendly, it does have a learning section on it.
Schwab’s robo service is a reasonable place to start.
Long-Term Investors and Retirement Savers: Both brokerage houses deliver personalized financial planning services, branch locations, target-date mutual funds, annuities, self-employed 401k plans, and retirement tools and educational materials on their sites. Take your pick.
TD Ameritrade vs Charles Schwab: Results
TD Ameritrade has a slight lead over Schwab overall.
TD Ameritrade Promotions 2024
Visit TD Ameritrade Website
2024 TD Ameritrade Offer Code Disclaimer
2024 TD Ameritrade promotion offer details to open a new account (IRA or taxable) may change at any time
without notice.
Updated on 12/2/2024.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
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