TD Ameritrade Thinkorswim: Commission Structure
AAA
  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. Smart Beta

    Investment strategies that emphasize the use of alternative weighting ...
  2. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
  3. Account Minimum

    The minimum balance required to be maintained in an investment ...
  4. Capital Growth

    The increase in value of an asset or investment over time. It ...
  5. Absolute Percentage Growth

    An increase in the value of an asset or account expressed in ...
  6. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified ...
  1. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ...
  2. What does standard deviation measure in a portfolio?

    Dig deeper into the investment uses of, and mathematical principles behind, standard deviation as a measurement of portfolio ...
  3. How can I use alpha in conjunction with the Treynor Ratio?

    Learn about alpha and the Treynor ratio and how these metrics are used to assess investment strategy by comparing portfolio ...
  4. How often should I be checking the NAV of my mutual fund shares?

    Learn why the net asset value (NAV) of a mutual fund should be monitored regularly and understand the reasons why you should ...

You May Also Like

Related Tutorials
  1. Trading Systems & Software

    Beginner's Guide To J-Trader

  2. Trading Systems & Software

    Beginner's Guide To CQG Integrated Client Trading Platform

  3. Trading Systems & Software

    Guide To Smartphone Forex Apps

  4. Trading Systems & Software

    Automated Trading with MultiCharts

  5. Trading Systems & Software

    Creating Automated Trading Systems Using Interactive Brokers

Trading Center