Charles Schwab Vs. TD Ameritrade – What Is Differences between Them

Charles Schwab Vs. TD Ameritrade. When it comes to Charles Schwab Vs. TD Ameritrade, picking the best from these two giant brokers with competitive features depends largely on what your needs are. Charles Schwab can be said to be a good choice for beginning and advanced investors who are looking to invest in ETFs and mutual funds or investors that need extensive research. It offers stock and ETF trades at $0 commission and options trading at $0 commission + $0.65 per contract, with no minimum deposit, no maintenance fee, and no inactivity fee.

Charles Schwab Vs. TD Ameritrade - What Is Differences between Them

On the other hand, TD Ameritrade offers a $0 commission online stock, ETF, and options trades. This company has more than 100 branch locations. There is no minimum deposit, no maintenance fee, as well as no inactivity fee.

TD Ameritrade and Charles Schwab, have a wide appeal to a wide range of investment needs, thus we will looking into both worlds of Charles Schwab and TD Ameritrade.

About Charles Schwab

Charles Schwab is a brokerage company founded in 1973 and headquartered in San Francisco. It is a company that has evolved to become one of the biggest and most affordable brokerages in the United States. It offers among the lowest trade commissions in the discount brokerage industry with its very own family of very low-fee mutual funds as well as exchange-traded funds (ETFs). At Charles Schwab, you can open just about any type of investment account Schwab.

About TD Ameritrade

TD Ameritrade is one of the major United States brokerage, which was founded in 1971. Located in Omaha, the company is famous for its top-tier trading platform as well as access to a very wide range of tradable assets. Over the years, TD Ameritrade has made a few big acquisitions over the years, including TD Waterhouse, Thinkorswim, and Scottrade. In October 2019, TD Ameritrade started offering commission-free online trading for stocks, ETFs, and options.

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What Makes Charles Schwab Vs. TD Ameritrade?

Minimum Investment:

When it comes to minimum investment, none of these platforms require a minimum investment in order to get started.

Investment Account Types:

Both platforms offer taxable individual and joint accounts and traditional and Roth IRA accounts.

Investment Types:

Both services enable you to invest in stocks and options.

Mobile Apps:

Charles Schwab and TD Ameritrade both emphasize investing with an Android or Apple mobile device.

No-Fee ETFs:

Both TD Ameritrade and Charles Schwab offer commission fee-free ETFs

Differences between Charles Schwab and TD Ameritrade

Fees: Charles Schwab costs stand at about $5/stock trade.

TD Ameritrade is currently commission-free for trading stocks, ETFs and options online.

Available Accounts:

While Charles Schwab offers checking accounts and savings accounts, TD Ameritrade offers the widest variety of investment accounts, including trusts, 529s, and Coverdell college savings accounts, annuities, money markets, and certificates of deposit (CDs), in addition to taxable accounts and IRAs.

Customer Service:

Both Charles Schwab and TD Ameritrade offer 24/7 phone and live chat support.

Unique Features of Charles Schwab

  • Charles Schwab comes in handy for a ‘typical’ investor and offers customers a very good active trading platform, StreetSmart, and also supports most types of popular investments. With Charles Schwab, you can be sure that both active and passive investment needs will be covered.
  • Schwab also offers a handful of other unique features which include a no-fee Robo advisor and its own family of mutual funds and ETFs which you can trade fee-free. Charles Schwab’s index funds are some of the cheapest you can find around.
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Unique Features of TD Ameritrade

  • TD Ameritrade supports almost any investing and trading needs. Its most visible feature is its active trading tools and its ability to trade just about anything that exists. These tools include stocks, options, ETFs, bonds, mutual funds, futures, Forex, and even cryptocurrencies. It also has cash management and annuity also.
  • This brokerage also offers excellent education resources to level up your trading.
  • With its acquisition of thinkorswim, which happens to be TD Ameritrade’s active trading platform, the platform launched the brokerage to the very top of the list for trading tools offered by major brokerages.

What is Charles Schwab and TD Ameritrade Best For?

Charles Schwab

Charles Schwab is best for an average investor who wants all of their accounts at the same brokerage. You can take advantage of its excellent selection of account and investment types.

TD Ameritrade

TD Ameritrade works best for professionals and expert-level traders.

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