When it comes to investing, simplicity is key. And finding a quality broker that offers both an intuitive platform and low fees is the holy grail for investing.
Both TD Ameritrade and Charles Schwab are known for their access to free trading and a large selection of investments, but what you might not know is that they both also offer two of the best mobile apps for new investors, as well as world-class user education. to help you learn more about finance and investing concepts.
While both companies are under the umbrella of Charles Schwab (Schwab bought TD Ameritrade in 2020), they are two separate platforms with different features.
We have reviewed features, fees, trading tools, available assets, customer service and security to help you determine which trading platform is right for you.
Review of TD Ameritrade and Charles Schwab
Both TD Ameritrade and Charles Schwab offer free stock and ETF trading. Each also offers advanced trading platforms with a wide range of trading instruments, access to market news and research, as well as options contracts and futures.
TD Ameritrade’s large educational library is perfect for beginners, along with its live streaming of financial market news.
Of these two, Charles Schwab offers access to more international markets than TD Ameritrade, including 30 different countries and over 50 international exchanges.
| TD Ameritrade | Charles Schwab | |
|---|---|---|
| Trading fees | ● None for stocks, bonds, ETFs. ● $0.65 per option contract ● $2.25 per futures contract. ● $25 broker commission ● Up to $74.95 for mutual funds |
● None for stocks, bonds, ETFs. ● $0.65 per option contract ● $2.25 per futures contract. ● $25 broker commission ● Up to $74.95 for mutual funds |
| Pay per account | Transfer $75 (full) | Transfer $25/$50 (partial/full) |
| Trading assets | ● Promotions ● Bonds ● Mutual funds ● ETFs ● Futures ● Options ● American Depositary Receipts (ADRs) ● 1 international market (Canada) ● Forex ● IPO (on certain accounts) |
● Promotions ● Bonds ● Mutual funds ● ETFs ● Futures ● Options ● American Depositary Receipts (ADRs) ● 10+ international markets ● IPO (for some participants) |
| Account Minimum | $0 | $0 |
| Mobile app available? | Yes | Yes |
| Education | News, commentary and research from over a dozen external sources including Morningstar and Reuters. | News feed, research from multiple third party analytics platforms including Nasdaq and Reuters |
| Customer service | ● 24/7 phone, email and chat ● In person at local US offices. |
● 24/7 phone, email and chat ● In person at local US offices. |
About Charles Schwab
Charles Schwab is one of the largest online brokers in the US, offering access to free stocks and ETFs, low-cost option contracts, and even margin and futures trading. It is a full-service brokerage company that offers a wide range of investment services, including access to financial advisors, a free robotic advisory platform, and many applications for investing and active trading.
Charles Schwab actually owns TD Ameritrade, although both companies still operate as independent platforms. Charles Schwab offers access to fractional stocks and ETFs, making it more accessible to small-trade investors who need access to higher-priced stocks and funds. Users can also trade a wide range of assets, including stocks, bonds, ETFs, mutual funds, futures and options contracts, with access to over 10 international markets.
Read more: How to invest in ETFs
Charles Schwab’s default mobile app offers a very simple user interface, helping investors buy and sell assets and build a diversified investment portfolio. The StreetSmart Mobile app is designed for active traders and offers options and futures trading with advanced charting, real-time data feeds and watchlists.
Overall, Charles Schwab is a great investment platform with low fees for beginners, as well as a decent firm for active traders who need access to more advanced trading features.
Visit the Charles Schwab website for more information.
About Trading House Ameritrade
TD Ameritrade was acquired by Charles Schwab in 2020 but still operates as an independent platform. Designed for beginners TD Ameritrade offers an extensive library of educational articles, videos and tutorials to help new users get up to speed on investing and other financial topics. It also offers an intuitive mobile app that makes it easy to deposit funds and start trading.
TD Ameritrade allows users to invest in stocks, bonds, ETFs, mutual funds, futures and options contracts, as well as a wide range of foreign exchange transactions and access to certain IPOs.
Read more: Beginner’s Guide to Forex Trading
Active traders will enjoy the extensive library of research and analysis compiled by research firms such as Reuters and Morningstar. For real-time analysis, the TD Ameritrade Network is broadcast weekdays, offering real-time market updates and commentary.
TD Ameritrade offers two trading platforms:
- The standard TD Ameritrade app offers access to a customizable dashboard, stock quotes, price alerts, and the ability to track your favorite investments on a watchlist.
- thinkorswim’s web and mobile apps offer one of the best suite of trading tools and indicators, access to futures and forex trading, as well as real-time market analysis and community features.
All in all, TD Ameritrade offers something for everyone with a simplified mobile app as well as an advanced thinkorswim trading platform. With free stock and ETF trading, as well as low commission options and futures contracts, TD Ameritrade is a good choice for any investor.
Try TD Ameritrade or read our full review.
Investment performance of TD Ameritrade and Charles Schwab
Both Charles Schwab and TD Ameritrade offer access to free trading in thousands of stocks and ETFs, as well as access to futures and options trading on their advanced platforms. The performance of these investments will vary depending on the composition of the portfolio and the individual investment options for each account.
Charles Schwab offers a robotic advisory service called Schwab Intelligent Portfolios (SIP) that automatically generates diversified investment portfolios for investors. The historical performance of these portfolios has been tracked since inception and can be found on the Charles Schwab website.
Here is a summary of Charles Schwab Smart Portfolio’s “Global Portfolio” investment performance as of May 2022:
| 1 year | 3 years | 5 year old | |
|---|---|---|---|
| Conservative | 0.01% | 4.72% | 3.91% |
| moderately conservative | 0.90% | 6.15% | 5.28% |
| Moderate | 1.71% | 7.30% | 6.33% |
| Moderate growth | 2.69% | 8.74% | 7.41% |
| Growth | 3.31% | 9.96% | 8.32% |
| Aggressive growth | 3.31% | 9.96% | 8.32% |
TD Ameritrade Essential Portfolios is a robotic advisory service that also helps you build a diversified portfolio of low cost ETFs. These portfolios offer different combinations of investments depending on the user’s objectives and risk tolerance, and the performance of these portfolios is listed on the TD Ameritrade website.
Here is a summary of investment performance for TD Ameritrade’s major portfolios as of May 2022:
| 1 year | 3 years | 5 year old | |
|---|---|---|---|
| Conservative | -2.10% | 4.26% | 3.98% |
| Moderate | -0.53% | 6.14% | 5.50% |
| Moderate growth | 0.72% | 7.62% | 6.67% |
| Growth | 2.62% | 10.35% | 8.81% |
| aggressive | 4.23% | 12.06% | 10.21% |
Pros and cons of TD Ameritrade
pros
- Huge library of educational content.
- Advanced trading in the thinkorswim mobile app.
- Large selection for trading on the Forex market (more than 70 currencies).
Minuses
- Large outgoing transfer fee of $75.
- Mutual funds are expensive (up to $74.95).
- No fractional share investment.
Pros and cons of Charles Schwab
pros
- Trade stocks and ETFs without commission.
- Access to 10+ international markets.
- Fractional investment in stocks.
Minuses
- StreetSmart mobile is not as intuitive as thinkorswim mobile.
- No forex trading.
- No trading simulator (no “paper trading”).
Why choose TD Ameritrade?
Study Library
TD Ameritrade offers one of the best educational resources of any online broker with educational videos, tutorials and articles to help new investors learn about important financial topics. This includes basic personal finance topics as well as advanced trading strategies.
Advanced trading on the go (thinkorswim mobile)
The thinkorswim platform offers some of the best trading tools in the industry, and the mobile app is one of the most intuitive advanced trading apps on the market. Most settings on the desktop version will sync with mobile devices, transferring saved charting indicators and drawings, watchlists, and stock alerts.
Read more: TD Ameritrade and thinkorswim: one company, different platforms
Research and analysis
In addition to the educational library, TD Ameritrade offers access to research from third-party partners such as Morningstar and Reuters, as well as stock screening, backtesting, and even the ability to trade fiat money with counterfeit money (on the thinkorswim platform).
Why choose Charles Schwab?
Fractional investing in stocks
Charles Schwab offers stock investing for as little as $5 of any stock or ETF, while TD Ameritrade does not.
Access to more international markets
Charles Schwab offers access to over 10 international markets including China, Germany and the UK. This requires working with an investment services advisor, but offers access to over 50 markets in around 30 different countries.
Access to SRI/ESG funds
Charles Schwab lets you search for investments with a Socially Responsible Investment (SRI) filter to help you select more case-focused stocks and ETFs.
Read more: Socially Responsible Investing: How to Become a Conscious Investor
Summary
Both Charles Schwab and TD Ameritrade offer commission-free stock and ETF trading, as well as intuitive mobile apps that are suitable for beginners and professional traders alike. Both platforms also offer a wide range of assets including stocks, ETFs, mutual funds, forex, option contracts and futures trading.
But while Charles Schwab is a low-cost platform that offers a wide range of investments and services to help new investors, TD Ameritrade is ideal for beginners and professional traders alike. It includes advanced analysis, dozens of trading tools and hundreds of charting indicators, as well as real-time streaming analysis built directly into the platform.
Overall, Charles Schwab offers a simple platform for newbies to access free trading and a wide range of investment options, while TD Ameritrade is great for both new investors and active traders who need access to educational resources and trading tools in order to invest earlier.
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