TD Ameritrade Thinkorswim: Commission Structure
  1. TD Ameritrade Thinkorswim: Introduction
  2. TD Ameritrade Thinkorswim: Account Types And Minimum Deposits
  3. TD Ameritrade Thinkorswim: Services Offered
  4. TD Ameritrade Thinkorswim: Commission Structure
  5. TD Ameritrade Thinkorswim: Customer Support
  6. TD Ameritrade Thinkorswim: Analysis Tools
  7. TD Ameritrade Thinkorswim: Conclusion

TD Ameritrade Thinkorswim: Commission Structure

By Cory Mitchell

When using the thinkorswim trading platform, fees fall under the "Internet" category and are cheaper than the fees charged by TD Ameritrade if making a trade by phone or with a broker's assistance. While many products can be traded on thinkorswim, the commission and fee structure is fairly straightforward. When trading online the cost of a trade is a $9.99 flat fee, when trading stocks and ETFs (commission free ETFs are available and will be discussed shortly). Figure 3 shows stock related fees.

Figure 3: TD Ameritrade Stock Trading Commissions (Feb. 2, 2012)


Options can be traded for $9.99 plus 75 cents per contract, and futures can be traded for $3.50 per contract.

TD Ameritrade offers "commission free" ETF trading in a specific list of eligible funds. There is no fee for buying the ETF as long as the trade is held for at least 30 days. If the ETF is liquidated before the 30-day period a "short-term trading fee" is applied.

For fixed-income products, the commission is largely determined on a "net yield basis." This means that the quoted price on bonds or CDs is marked up, thus the price seen includes the fee charged by TD Ameritrade. Forex trades work in a similar fashion. The price at which traders can transact will include a markup. Therefore, there is no commission, but rather TD Ameritrade makes money by including their markup in the quoted price or by being compensated by the liquidity providing forex dealer. When trading forex in 10,000 unit increments, there are no commissions charged in addition to the forex spread markup. When trading in 1,000 unit increments there is a 10 cents commission per unit, with the minimum commission being $1.

Treasuries purchased at an auction have a $25 flat fee.

Trading accounts often include margin, which is when a trader is only required to put up a portion of the cost of the transaction. This essentially means the broker is extending credit to the trader, and interest is charged.

Figure 4: Margin rates as of Feb. 3, 2012


Market data, which includes real-time charting and live quotes, is free for non-professional clients (retail traders). Miscellaneous fees may be charged though for withdrawals, transfers, stock certificate delivery, etc. Therefore, it is important to read the current fee structure before trading.

TD Ameritrade Thinkorswim: Customer Support

  1. TD Ameritrade Thinkorswim: Introduction
  2. TD Ameritrade Thinkorswim: Account Types And Minimum Deposits
  3. TD Ameritrade Thinkorswim: Services Offered
  4. TD Ameritrade Thinkorswim: Commission Structure
  5. TD Ameritrade Thinkorswim: Customer Support
  6. TD Ameritrade Thinkorswim: Analysis Tools
  7. TD Ameritrade Thinkorswim: Conclusion
RELATED TERMS
  1. Sortino Ratio

    A modification of the Sharpe ratio that differentiates harmful ...
  2. Equity Risk Premium

    The excess return that investing in the stock market provides ...
  3. Alpha

    Alpha is used in finance to represent two things: 1. a measure ...
  4. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  5. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth ...
  6. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment ...
RELATED FAQS
  1. Does mutual fund manager tenure matter?

    Mutual fund investors have numerous items to consider when selecting a fund, including investment style, sector focus, operating ... Read Full Answer >>
  2. Why do financial advisors dislike target-date funds?

    Financial advisors dislike target-date funds because these funds tend to charge high fees and have limited histories. It ... Read Full Answer >>
  3. What licenses does a hedge fund manager need to have?

    A hedge fund manager does not necessarily need any specific license to operate a fund, but depending on the type of investments ... Read Full Answer >>
  4. Can mutual funds invest in hedge funds?

    Mutual funds are legally allowed to invest in hedge funds. However, hedge funds and mutual funds have striking differences ... Read Full Answer >>
  5. When are mutual funds considered a bad investment?

    Mutual funds are considered a bad investment when investors consider certain negative factors to be important, such as high ... Read Full Answer >>
  6. What fees do financial advisors charge?

    Financial advisors who operate as fee-only planners charge a percentage, usually 1 to 2%, of a client's net assets. For a ... Read Full Answer >>
Hot Definitions
  1. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  2. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  3. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  4. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  5. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
Trading Center