TD Ameritrade Broker & OptionsXpress Broker are two of the top discount stock brokers in the US and around the globe. Choosing one or the other is quite challenging and will require you to do a lot of research. In fact, choosing between any two discount stock brokers are challenging due to all the factors you have to consider as well the amount of the info hidden from you & you will only find it out after using the discount stock broker itself. For that we have decided to gather as much info we can about all the popular stock brokers online and put them to the challenge head to head in an easy to read and compare so you can benefit right away. Ok, enough introduction and lets start comparing in here between TD Ameritrade vs OptionsXpress Broker.
Brokers Brief Reviews:
OptionsXpress Broker: has succeeded to be recognized as a world leaders in online stocks trading by many of the worlds business leaders such Barron’s, Forbes, Kiplinger’s and Smart Money. Both beginner and expert investors can benefits of their user-friendly service, a lot of educational trading training sessions not only for stocks trading, but options, mutual funds & even bonds. Further, they make trading from everywhere an achievable task with the availability of their trading platform on most smart phones available in the market today including iPhone, Android and Windows Mobile Phones. Their rates are not the lowest or the highest in the market, but right in the middle. Actually one thing we really like about OptionsXpress that with their reasonable fees they still don’t compromise on quality of service. Further, they have kept their fees & commissions structure simple enough with no hidden fees that make could turn into a nightmare with other brokers.
TD Ameritrade Broker: is one of the older online brokers and they have been operating since 1975 with a powerful platform that give you access to over 13,000 mutual fund, stocks, bonds, Options, CDs(certificate of Deposit), as well other variety type of investments. Their platform offer most of the features that can satisfy both new investors as well seasoned investors. The big catch though with TD Ameritrade Broker is their fees that is higher than usual specially when ordering through their interactive voice response telephone cost $44.99 & ordering through broker assisted orders it cost you a hefty $34.99.
Offered Investments:
OptionsXpress Broker: as the name indicated when started in 2000 was focused on trading Options while offering a limited equities trades, though OptionsXpress Broker has grown dramatically since then and now it offer a large variety of investments including stocks, bonds, mutual funds, and exchange–traded funds. OptionsXpress Broker still does not offer CDs(certificate of Deposit), unit investment trusts, mortgage-backed securities. For most investors OptionsXpress broker cover the investment types they are looking to trade.
TD Ameritrade Broker: We almost could not think of any investment or trading option that TD Ameritrade does not offer. You name it from stocks, options, mutual funds, exchange traded funds, various bonds, mortgage–backed securities (GNMAs), certificates of deposit (CDs) and unit investment trusts (UITs), Over the Counter Bulletin Board (OTCBB), pink sheet securities, as well fixed income investments including U.S. Treasury and Agency Issues. Further they offer all kind of different account options like IRAs(Individual Retirement Accounts), Roth IRAs for retirement, and Coverdell ESAs, custodial accounts and 529 plans for higher education which should give you enough of options to play with.
Brokers Commissions/Fees
OptionsXpress Broker:
- Minimum to open OptionXpress account: $0 for cash account, $2000 for margin account
- Stocks and ETFs: $9.95 if under 1001 shares; $0.01 per share if over 1000 shares
- Options (non-active traders): $14.95 for up to 10 contracts, $1.50/contract for over 10 contracts
- Options (active traders): $12.95 for up to 10 contracts, $1.25/contract for over 10 contracts
- Mutual Funds: $9.95 + load fee (for load mutual funds)
- Bonds: $5 / Bond – $9.95 Minimum
- Futures: 1-40 Contracts $6.99; 41-100 Contracts $5.99; 101-300 Contracts $4.99; 301-1,000 Contracts $3.99; 1,001 + Contracts $2.99
- Options on Futures: 1-40 Contracts $12.99; 41-100 Contracts $8.99; 101-300 Contracts $7.99; 301-1,000 Contracts $6.99; 1,001 + Contracts $5.99
- Covered Calls: $22.90 Up to 10 contracts
- Penny Options: 1-10 Contracts $4.95 Flat; 10 + $0.50/contract
- Spreads, Straddles & Combos: 2-10 Contracts – $12.95 Flat (active traders) $14.95 Flat (non-active traders); 10 + Contracts – $1.25/contract (active traders); $1.50/contract (non-active traders)
Although OptionsXpress Broker fees are not cheap when compared to other discounted stock brokers, they are quite fair for the type of service they offer. Actually for the type of service OptionsXpress offer their prices is quite reasonable and worth looking at as most other discounted brokers with lower or even similar fees usually compromise on the quality of their services, but not with OptionsXpress. OptionsXpress Broker actually offer the bigger guys server at the right price.
TD Ameritrade Broker:
- Minimum to open TD Ameritrade account: $0 for cash account, $2,000 for margin account
- Stocks and ETFs: $9.99
- Stocks and ETFs broker assisted: $49.99
- Stocks and ETFs Interactive Voice Response (IVR) Telephone System: $34.99
- Options: $9.99 plus $0.75 per contract
- No-load mutual funds: $49.99
- Treasuries at auction: $25 flat fee
- All other bonds and CMOs, CDs: on a net yield basis
- Futures: $3.50 per contract (inclusive of exchange fees)
- Investment products: stocks, bonds, mutual funds, options, ETFs
TD Ameritrade broker is quite heavy on fees, specially if you utilize their Stocks and ETFs broker assisted trades or Stocks and ETFs interactive Voice Response (IVR) Telephone System to place a trade. Actually their fees for these two options in particular are ones of the highest in the market, so if you will be doing a lot of these you might want to consider look at a different discount stock broker.
Customer/Support Service
OptionsXpress Broker: has a great friendly support by chat,phone, & email. We felt that OptionsXpress broker support is well educated and had the information we needed handy when ever we needed them. Actually we love their chat support & find it a distinguish features as only few discount stock brokers offer chat support today. Further they have 24 hours futures trades. OptionsXpress broker offers great trading training as well training that explain the features on their site & how to use its advance functionality. Nonetheless they have only 2 support centers, they have been always to offer a super-b support.
TD Ameritrade Broker: offer all type of support you expect for broker with similar fees. They offer e-mail, phone, as well live chat support from their over 200 offices around the US. Further they help & faqs pages are quite detailed and you will probably find the answers to your questions documented in there before you even ask. Their customer support is normally up to the task, but they seems to crack occasionally under heavy load, but it should be efficient for most investors
Brokers Platform Ease of Use
OptionsXpress Broker: Trading platform website is actually divided into clear cut sections, & each section has been give a separate tab which make it quite easy to navigate. Further, they offer a downloadable version of their platform called Xtend that has more extensive features that you don’t find on their website. We have liked Xtend for two reasons. It has been able to deliver a lot more functionality that trading websites usually could, & it has the look and feel as it would have been running totally on our local machine. Further, they have plenty of tutorials and training on how to trade using their trading platform website, as well about trading in general. We believe even new traders will be able to trade on OptionsXpress with ease and without any problem. They might not even have to go through many tutorials to do so, though we still recommend to go their educational tutorial as its loaded with valuable tips about trading. We believe OptionsXpress has done well in taking both seasoned traders as well new traders in mind when designing their trading website.
TD Ameritrade Broker: has a quite easy to use interface. The interface it self is well put up together and very well labeled so you almost can not get lost on there. Further, if you are in need for help at any time you will find right ahead of you with chat support button on every screen which get you to a support representative who can help you. Although TD Ameritrade has many advanced and sophisticated functionality it has mostly been implemented in one click actions that make it really easy. Further, the interface seemed lag free no matter what we do with it.
Brokers Trading Tools
OptionsXpress Broker: is known to have the widest range of trading tools including automation tools that will allow you to setup buying and selling rules & it will do the job for you even if you are not near your computer or not even following at that moment. Their automation tools make sure you never miss the chance to buy at the price you wanted even if it fall to it when you are away. As well they offer plenty tools and informative materials include calculators, charts, streaming news and analyst research report. Further, their interface is quite customizable and you can put your tools into the way you like to access them to ease your day to day trading. Further, one area OptionsXpress Broker excellent at is giving their users the ability to access their system from any where that you can access the internet as its compatible with almost every smart phone out there iPhone, Android, Windows Mobile phone!!
TD Ameritrade Broker: has one of the most comprehensive interfaces in the industry with many advanced & sophosticated functionality which can help you spot opportunities. Further, you can see market news & so on right from their interface. Further they could offers level II quote and streaming news for a fee if you require it. In addition, they have their trading tools for mobile users on all most smart phones(Android, iPhone, BlackBerry)
TD Ameritrade vs OptionsXpress: Comparison Summary
As far trading fees goes both OptionsXpress & TD Ameritrade has quite similar fees for ETFs & Stocks where TD Ameritrade high fees show up when using Stocks and ETFs broker assisted trades as well when using Stocks and ETFs Interactive Voice Response (IVR) Telephone System at $49.99 & 34.99 accordingly. The fees and the way TD Ameritrade operate is more suitable for Seasoned traders, but might not be best for beginners, which is a place where OptionsXpress excel. Further OptionsXpress broker offers a free virtual trading where beginners can build their trading skills without putting any real money which is a quite impressive learning tool if you are new to stock. In addition, OptionsXpress are offering a $100 bonus as incentive to use their platform as well which even more encouraging for new traders. OptionsXpress provide a better customer service specially for the novice traders, though we can not complain about TD Ameritrade support which is quite good and sufficient(Though might be a bit sluggish under extensive load & when extended hours apply). Both of them offer great trading, research, & trading educational tools as well access from most smart phones available in the market today (iPhone, BlackBerry, & Android phones). At the end if you are a beginner then more likely you would be better of with OptionsXpress, but if you are a seasoned trader then you have to take a closer look at the plus and cons of each presented in this comparison and cut your decision accordingly.
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