Thinkorswim vs. OptionsXpress
Oh, to choose a broker. It’s never easy – especially when you have so many great choices!
Two of the most popular online brokers, particularly for options traders, are Thinkorswim and OptionsXpress. Both offer a lot of great things to customers, including:
- excellent customer service, as confirmed by many active users of both firms I’ve spoken with (anecdotes count for SOMETHING)
- rock-solid, sophisticated trading platforms
- Apple Mac-friendliness
- mobile trading apps
If you want to compare commissions, here’s a brief summary of each company’s plan:
OptionsXpress:
Options Commissions – $9.95 + 75¢ per contract.
- 1 contract = $10.70
- 5 contracts = $13.70
- 10 contracts = $17.45
- 20 contracts = $24.95
- 50 contracts = $47.45
- 100 conracts = $84.95
Stock commissions – $9.95 for up to 1,000 shares, 1¢/share above 1,000 shares
- 1,000 shares – $9.95
- 1,500 shares – $15
- 2,000 shares – $20
- 5,000 shares – $50
- 10,000 shares – $100
Thinkorswim:
Options Commissions – calculated using the “Standard” rate plan. Trades are charged as the lesser of: $2.95 per contract or $1.50 per contract plus $9.95 (only one $9.95 charge for unlimited spread legs). Cheaper plans are available for those who do more volume – $1.25/contract with $12.95 min per leg, and $0.95 per contract with $19.95 min per leg.
- 1 contract = $2.95
- 5 contracts = $17.45
- 10 contracts = $24.95
- 20 contracts = $39.95
- 50 contracts = $84.95
- 100 conracts = $159.95
Stock commissions - calculated using $0.015 per share pricing. $9.95 per trade flat pricing also available.
- 1,000 shares – $15
- 1,500 shares – $22.50
- 2,000 shares – $30
- 5,000 shares – $75
- 10,000 shares – $150
As I’ve advised before in how to choose an online broker, commissions aren’t everything. You also can’t go by sticker price if you move serious volume – big traders can negotiate special rates.
OptionsXpress is a little cheaper overall, especially for options, but for most people, both brokers are very good choices. The difference in commission rates isn’t that significant for a person making one or two trades a month. For that class of customer, the best thing to do is to simply try out each company’s demo software, and pick the one that feels best.
Otherwise, it’s a tie!