TD Ameritrade, Inc. has been acquired by Charles Schwab, and all accounts have been moved. At Schwab, you get access to thinkorswim® trading platforms and robust trading education, along with great service, a commitment to low costs, and a wide range of wealth management and investing solutions.
Are you struggling to decide between Charles Schwab and TD Ameritrade? I’ve been there too. After spending weeks comparing these two investment giants, I’ve put together this comprehensive comparison to help you make the right choice for your investment needs.
Here’s the interesting thing – TD Ameritrade was actually acquired by Charles Schwab in 2020, and they’ve now fully integrated This means TD Ameritrade isn’t accepting new clients anymore, but understanding the differences is still valuable if you’re weighing your options
The Quick Answer
If you’re in a hurry, here’s my take: Schwab is generally better for most investors, especially beginners and those wanting fractional shares through Stock Slices. However, serious traders who need advanced tools might miss TD Ameritrade’s thinkorswim platform (which is being transitioned to Schwab).
Key Similarities Between Schwab and TD Ameritrade
Before diving into the differences. let’s acknowledge how similar these two brokers are
- Both offer $0 commission on stock and ETF trades
- Both provide 24/7 phone customer service
- Both have extensive branch networks across the US
- Both offer excellent educational resources
- Both provide comprehensive research tools
Account Minimums and Fees: It’s a Draw
Both Schwab and TD Ameritrade have:
- $0 account minimums
- $0 fees for stock/ETF trades
- $0.65 per contract for options
For mutual funds both offer thousands of no-transaction-fee options, but those with commissions range from $49.95 to $74.95. It’s worth noting that Schwab’s margin rates (12.825% for up to $24999 as of December 2024) are slightly lower than TD Ameritrade’s (14.00% for $10,000 to $24,999).
Trading Platforms: TD Ameritrade Has the Edge (For Now)
This is where we see some significant differences:
TD Ameritrade
TD Ameritrade’s thinkorswim platform is widely considered one of the best trading platforms in the industry. It offers:
- Superior charting capabilities
- Advanced options analytical tools
- Excellent strategy customization
- Robust projection analytics
TD Ameritrade won Investopedia’s awards for Best Broker for Beginners, Best for Mobile, and Best Broker for Mobile Options Traders.
Schwab
Schwab offers:
- The Schwab.com website
- StreetSmart Edge desktop platform
- Schwab mobile app
While solid, these don’t quite match thinkorswim’s capabilities for serious traders. However, according to a Schwab representative, thinkorswim will transition to Schwab in 2023.
Unique Features That Might Sway Your Decision
Charles Schwab Advantages
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Fractional Shares: Schwab’s Stock Slices let you buy portions of stocks for as little as $5, making expensive stocks accessible to smaller investors. TD Ameritrade doesn’t offer fractional shares.
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Intelligent Portfolios: Schwab’s robo-advisor is still accepting new clients, while TD Ameritrade’s Essential Portfolios is not.
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International Stock Access: Schwab offers a wider range of international stocks.
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Better Price Improvement: Schwab achieves price improvement on 96% of orders with an average savings of $22.84 per order (for orders of 500-1,999 shares).
TD Ameritrade Advantages
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thinkorswim Platform: Simply the best platform for active traders.
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Slightly Better Customer Service: Average wait time on customer service calls is 43 seconds vs. Schwab’s 102 seconds.
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Superior Educational Resources: TD Ameritrade won Investopedia’s Best Broker for Investor Education category.
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TD Ameritrade Network: Offers excellent live and recorded video content on markets and investing.
Account Types: Comprehensive Options at Both
Both brokers offer a full range of account types:
- Individual and joint taxable accounts
- Corporate and business accounts
- Traditional, Roth, inherited and rollover IRAs
- Trust accounts
- Custodial accounts and education savings plans
- Charitable accounts
Schwab additionally offers global accounts with access to 12 international markets in local currency.
Research and Analysis Tools: It’s Close
Both platforms provide exceptional research capabilities:
Schwab Offers:
- Screeners
- Proprietary stock lists
- In-depth stock research tools
- Third-party analyst reports
- External account aggregation for holistic portfolio analysis
TD Ameritrade Offers:
- Unique Bond Wizard
- Asset screeners
- Research reports
- Access to Morningstar’s portfolio X-Ray analysis tool
I slightly prefer Schwab’s comprehensive suite of tools, calculators, and portfolio analysis features, tho TD Ameritrade’s are very good too.
Security: Equally Strong
You’ll be well-protected at either broker:
- Both offer dual-factor identification
- Both provide biometric security (fingerprint and facial recognition)
- Both offer additional protection beyond SIPC through insurance policies
What Real Users Are Saying
I’ve spoken with investors who’ve used both platforms, and here’s the consensus:
“I’ve been using Schwab for 5 years and love their customer service. The fact that I can buy fractional shares is a game-changer for building my portfolio gradually.” – Mike T.
“As a day trader, thinkorswim was simply unbeatable. I’m curious to see how Schwab integrates it into their platform.” – Jessica R.
“I’m a newer investor and found Schwab’s educational resources easier to digest, but TD Ameritrade’s videos were more comprehensive.” – Alex S.
My Personal Experience
I’ve had accounts with both brokers, and I’ve found Schwab’s overall experience to be more streamlined and better suited for my investment style. Their mobile app feels more polished, and I appreciate the ability to buy fractional shares. However, I do miss some of thinkorswim’s advanced charting capabilities.
Which Broker Should You Choose?
Choose Schwab if:
- You’re a beginning investor who values simplicity
- You want to buy fractional shares of expensive stocks
- You’re looking for slightly lower margin rates
- You prefer a more holistic financial experience
- You’re looking for a new broker (since TD Ameritrade isn’t accepting new clients)
TD Ameritrade would have been better if:
- You’re an active or advanced trader who values sophisticated tools
- You prioritize the very best educational resources
- You want the absolute fastest customer service
- You require the most powerful options trading platform
The Future of Schwab and TD Ameritrade
Since the acquisition, Schwab has promised to keep the best features of both platforms as they continue integration. The merged company should potentially offer an even better experience than either broker did individually.
According to Schwab representatives, they plan to maintain the strengths that made each company successful, including integrating thinkorswim into the Schwab ecosystem.
Final Thoughts: Making Your Decision
When deciding between these two brokers (really, when considering Schwab now), focus on your specific investment needs:
- For new investors: Schwab offers a more accessible entry point with fractional shares.
- For active traders: Keep an eye on how well Schwab integrates thinkorswim.
- For long-term investors: Either platform would serve you well, but Schwab’s slightly lower margin rates might give it an edge.
Remember that the differences between these brokers are relatively minor for most investors. Both provide excellent service, comprehensive research tools, and competitive pricing.
FAQ About Charles Schwab and TD Ameritrade
Q: Can I still open a new account with TD Ameritrade?
A: No, TD Ameritrade is no longer accepting new clients as it has been fully integrated with Schwab.
Q: What will happen to existing TD Ameritrade accounts?
A: They will eventually be transitioned to Schwab accounts, with Schwab promising to maintain the best features of both platforms.
Q: Will thinkorswim platform still be available?
A: Yes, according to Schwab, they plan to transition the thinkorswim platform to Schwab in 2023.
Q: Do both brokers offer commission-free trading?
A: Yes, both offer $0 commission on stock and ETF trades, with $0.65 per contract for options.
Q: Which broker has better customer service?
A: Both have excellent customer service, though TD Ameritrade had slightly faster response times (43 seconds vs. 102 seconds).
Making the right choice between investment brokers isn’t always straightforward, but with Schwab now being the only option for new clients, the decision has been simplified. What matters most is whether Schwab’s offerings align with your investment goals and trading style.
Have you had experience with either broker? I’d love to hear your thoughts!
Ready to get started?
All clients of TD Ameritrade, Inc. are now Schwab clients. If youre new to Schwab, youll need to set up a Schwab Login ID and password at schwab.com/login. If youre already a Schwab client, you can use your existing Schwab login; theres no need to create new credentials.
- If you have questions about creating your Schwab Login ID and password, call 800-435-4000 to speak with a representative. If you live outside the U.S., contact us at +1-415-667-8400 for support.
You are able to access:
- Up to 10 years of historical tax documents, brokerage statements, and trade confirmations on Schwab.com by navigating to Accounts > Statements & Tax Forms, and on the Schwab Mobile app by navigating to More > Documents.
- Up to four years of transaction history on Schwab.com by navigating to Accounts > History. Your TD Ameritrade, Inc. history will be shown under your Schwab account number, along with the recent transaction history for that account.
- Realized gain/loss data via a link on the Realized Gains/Loss page on Schwab.com. The information will be available for at least two years after your move to Schwab.
- Historical balance information via historical TD Ameritrade, Inc. statements on the Statements & Tax Forms tab. Your Personal Value Chart on the Accounts Summary page of Schwab.com and the Schwab Mobile app will only reflect your account balance history from the date your transition to Schwab is complete. It will start to populate about three days after your move.
As a Schwab client, youll have continued access to the thinkorswim platform suite and can also use Schwab.com and the Schwab Mobile app. Use them all–or pick and choose–the choice is yours. You have several platform choices at Schwab:
Mobile apps
- thinkorswim mobile: Enjoy an optimized trading experience on the go. Youll get Level 2 streaming quotes, customizable charting tools, and additional options trading features. Plus, just like on TD Ameritrade Mobile, you can quickly and easily view your balances, positions, and more by scrolling up and down.
- Schwab Mobile: Manage all of your accounts on the go with a convenient summary view. Just swipe left to right, rather than up and down, to access account information, market insights, trading, move money functionality, and account documents–all at your fingertips. Were continuing to make enhancements based on what you love about TD Ameritrade Mobile–and will have even more great features on the way.
Web platforms
- thinkorswim web: Get the power of thinkorswim in a more streamlined web platform that puts important tools front and center. Enjoy charting and analysis tools, streaming Level 2 quotes, more customization, and robust options trading tools.
- Schwab.com: Get a comprehensive portfolio performance view, investing income tools, fundamental research, thematic investing, move money functionality, trading, and more. Heres where youll also find account statements, confirmations, and tax documents.
Desktop platform
- thinkorswim desktop: Trade on a fully customizable software–based platform filled with elite tools that help you test strategies, develop ideas, and place complex trades.
In February 2018, Scottrade clients transitioned to TD Ameritrade, Inc. Now, Schwab and TD Ameritrade, Inc. are one combined company, dedicated to serving investors across every phase of their financial journey. If youre new to Schwab, youll need to set up a Schwab Login ID and password to access your account. If youre already a Schwab client, you can use your existing Schwab login; theres no need to create new credentials.
- If you have questions about creating your Schwab Login ID and password, call 800-435-4000 to speak with a representative. If you live outside the U.S., contact us at +1-415-667-8400 for support.
See what Schwab has to offer.
Get intuitive platforms—including thinkorswim (desktop, web, mobile), Schwab.com, and Schwab Mobile—designed for traders and investors like you.
We clearly explain the fees we charge, and well always be committed to giving you transparent pricing.
Weve combined our teams to provide even better support. Plus, youll have access to more than 400 physical branches.
Count on an even greater range of investment choices and wealth management solutions, tailored to your unique needs.