Our analysis of 18 of the top online brokers reveals that Charles Schwab (96) is superior to TD Ameritrade. 6%) is better than TD Ameritrade (N/A). Since TD Ameritrades thinkorswim platforms were added, a number of features have been improved, and Schwab is now a formidable rival with insightful research and commentary as well as a customer experience that can accommodate any preference.
Choosing the right online broker is crucial for your investment success. Two of the biggest names in the industry, Charles Schwab and TD Ameritrade, have recently merged creating a behemoth with an even wider range of offerings. But which one is better for you?
This comprehensive guide delves into the key differences between Schwab and Ameritrade helping you determine which platform aligns best with your investment goals and preferences. We’ll analyze trading costs, account minimums, research tools, and other features to provide a clear picture of each broker’s strengths and weaknesses.
Trading Costs and Commissions:
Both Schwab and Ameritrade offer commission-free stock and ETF trades, making them highly competitive in this area. However, there are subtle differences in other fees that might sway your decision.
| Feature | Charles Schwab | TD Ameritrade |
|---|---|---|
| Stock and ETF trades | $0 | $0 |
| Stock options | $0.65 per contract | $0.65 per contract |
| Mutual funds | $49.95 (thousands for free) | $49.99 (thousands for free) |
| Automated phone trades | $25 | $25 |
| Broker-assisted stock trades | $25 per trade | $25 per trade |
As you can see, the commission fees for most trades are identical. However, Schwab offers a slight advantage with its lower mutual fund transaction fee of $49.95 compared to Ameritrade’s $49.99.
Commission-Free Funds:
Both Schwab and Ameritrade boast extensive lists of commission-free mutual funds and ETFs, allowing you to invest in popular funds without incurring transaction fees. This feature can significantly reduce your overall investment costs.
| Feature | Charles Schwab | TD Ameritrade |
|---|---|---|
| Total mutual funds | Over 10,100 | Over 13,000 |
| NTF mutual funds | Over 4,300 | Over 4,100 |
While Ameritrade offers a slightly larger selection of total mutual funds, Schwab takes the lead with more commission-free options. Additionally, Schwab’s OneSource program provides access to thousands of mutual funds with reduced minimums, starting at just $100 for an initial investment.
Account Minimums:
Both Schwab and Ameritrade eliminate the barrier to entry by requiring no minimum deposit to open an account. This makes them accessible to investors of all levels, regardless of their initial capital.
Trading Platforms:
For active traders, the trading platform plays a crucial role in their investment decisions. Here’s how Schwab and Ameritrade stack up in this area:
Charles Schwab:
- StreetSmart Edge: This platform is being retired in 2024.
- thinkorswim: This powerful platform will be available to all Schwab clients after the merger.
TD Ameritrade:
- thinkorswim: This award-winning platform is a favorite among active traders for its advanced features and robust charting tools.
While Schwab’s StreetSmart Edge is being phased out, the addition of thinkorswim to its platform arsenal significantly enhances its capabilities for active traders. However, Ameritrade’s native thinkorswim platform remains a strong contender, offering a
How do Charles Schwab and TD Ameritrade compare in terms of minimum deposit required?
Charles Schwab requires a minimum deposit of $0. 00, while TD Ameritrade requires a minimum deposit of $0. 00. Our investigation revealed that SoFi is the only broker with a minimum deposit requirement.
Is Charles Schwab or TD Ameritrade better for beginners?
In the world of stock trading, knowledge is power. One excellent method to reduce the learning curve is to make use of resources like articles, webinars, videos, and interactive elements. In this analysis, we look at the availability of various kinds of educational resources.
According to our review, Charles Schwab provides new investors with a more thorough education than TD Ameritrade for 2024. Investors can access videos, education about stocks, mutual funds, education about ETFs, education about options, education about bonds, and education about retirement through Charles Schwab, while investors can access paper trading, videos, education about stocks, mutual funds, education about ETFs, education about options, education about bonds, and education about retirement through TD Ameritrade.
Charles Schwab vs TD Ameritrade – Which One is the Best for You? (A Detailed Comparison)
FAQ
Should I use TD Ameritrade or Schwab?
Why is TD Ameritrade moving to Schwab?
What platform is better than TD Ameritrade?
What is the downside to TD Ameritrade?
Is Charles Schwab better than TD Ameritrade?
Looking at a full range of investment options, including order types and international trading, our research has found that Charles Schwab offers a more comprehensive offering than TD Ameritrade. Charles Schwab ranks #2 out of 18 brokers for our Investment Options category, while TD Ameritrade ranks #N/A.
Will TD Ameritrade move to Schwab?
Yes. As part of the merger process, TD Ameritrade accounts will be moved to Schwab in batches, with notifications sent out to customers when their accounts are ready. Is Charles Schwab the same as TD Ameritrade?
Which TD Ameritrade & Charles Schwab are the best online trading platforms?
Charles Schwab and TD Ameritrade offer two of the best full-service online trading platforms on the market today. They are strong options for investors of just about any skill level, and investors can choose either with confidence. In the end, the small details of each platform will dictate which is the right choice for you.
Is Ameritrade better than Schwab?
However, Ameritrade’s system is generally easier to use than Schwab’s due chiefly to the latter’s All-In-One Trading Ticket. This system organizes all of your trading activity into one window, where you can see all of the trades you have requested in a single place before committing to the purchase or sale.