Schwab Trading Products

There's a lot to look forward to when you start trading at Schwab. Access all the investment products you have now, including equities, options, and futures. Plus enjoy new products and capabilities.

There's a lot to look forward to when you start trading at Schwab. Like extensive investment choices and potential opportunities to seize. Read on for details.

stocks

Stocks and ETFs

Access a wide selection of stocks and ETFs, including:

  • All stocks listed on U.S. exchanges, plus over-the-counter stocks (OTCs) and more.
  • A broad range of international stocks, including American Depositary Receipts (ADRs), Canadian stocks, and foreign ordinaries.
  • All ETFs listed on U.S. exchanges—more than 2,000 different ETFs.

flat light

Options

Great news—the options trading level you're approved for at the time of your scheduled move will transition to Schwab with you. And, of course, you can expect the same low-cost pricing you're used to. Read on for details about options trading at Schwab.  

Note: You will be subject to a new options trading agreement. Please take a moment to review the new options trading agreement at your leisure.

Compare options levels at TD Ameritrade and Schwab.

Your options trading capabilities will be similar to what you experience today, with a few differences. Take a look at the table below to see the strategies that will be allowed at Schwab for each options level at TD Ameritrade:

  • Options level at TD Ameritrade
  • Options level at Schwab
  • Strategies allowed
  • Options level at TD Ameritrade
    1
  • Options level at Schwab
    0 – Covered
  • Strategies allowed
    • Long stock/short calls (covered calls) 
    • Cash-secured equity put writing 
    • Long stock/long puts (protective puts) 
    • Short stock/short puts (covered puts) (margin is required) 
    • Short stock/long calls (protective calls) (margin is required) 
    • Collar (long stock/short calls/long puts)
  • Options level at TD Ameritrade
    2 – Cash 
  • Options level at Schwab
    1 – Long
  • Strategies allowed
    • Any strategies from previous levels 
    • Long puts and calls 
    • Long straddles 
    • Long combos 
    • Long strangles
  • Options level at TD Ameritrade
    2 – Margin
  • Options level at Schwab
    2 – Spreads
  • Strategies allowed
    • Any strategies from previous levels 
    • Credit and debit spreads 
    • Diagonal call and put spreads 
    • Ratio spreads (long side heavy) 
    Margin or Limited Margin (IRA) is required
  • Options level at TD Ameritrade
    3
  • Options level at Schwab
    3 – Short Uncovered
  • Strategies allowed
    • Any strategies from previous levels 
    • Uncovered calls and puts 
    • Short straddles 
    • Short strangles
    • Short combos 
    Margin is required

Spread trading in IRAs

If you're currently approved to trade options spreads in your IRA at TD Ameritrade, you'll retain that approval once your account moves to Schwab. However, your IRA will be subject to a minimum account balance of $5,000 to trade options spreads. This is different from your current experience, as TD Ameritrade doesn't have a minimum account balance to trade options spreads in IRAs.

You will be subject to a new spread trading agreement, which can be found in the spread trading application for your reference. We want to stress that you do not need to complete or return the application to us. Simply review the agreement language at your leisure.

Options symbols

  • thinkorswim® will continue to use the same options symbols that you see today.
  • The options symbols used on the Schwab website and the Schwab Mobile app are very similar to how they appear on the Ameritrade website. 
  • Here's how the same call on AAPL appears on thinkorswim, Ameritrade website, and the Schwab website:
    • thinkorswim: .AAPL220520C135 
    • Ameritrade website: AAPL May 20 2022 135 Call
    • the Schwab website: AAPL 05/20/2022 135.00 C

 

This is an example of what an options call looks like at Schwab, demonstrating how the security name, expiration date, and strike price are displayed.

Options expiration

  • The Schwab cutoff time to submit a "do not exercise" request will be 5:00 p.m. ET (currently set at 5:30 p.m. ET at TD Ameritrade).
  • Instead of sending real-time notices about assignments, Schwab will send a trade confirmation by end of day noting that the trade is a result of an assignment.

 

Exchange routing for options trades

You'll still be able to select the exchange to which your options orders are routed at Schwab when using thinkorswim platforms. This functionality will not be available on Schwab website or the Schwab Mobile app.

In addition, you'll also be able to call a broker to request the exchange you'd like the order routed to.

Options symbol conversion in watchlists

Options symbols held in TD Ameritrade watch lists may appear with formatting errors when converted to Schwab watchlists. If that happens, simply deleting and adding back the symbols should correct the issue.


Futures

As a futures-approved client, you can expect a familiar futures trading experience when your account transitions to Schwab.

  • What's staying the same

    • You can continue to use thinkorswim to trade futures and get futures quotes just like you do today.
    • Futures commissions will remain the same.
    • The same futures service team that you work with today is moving to Schwab with you.
    • Third-party futures research providers will remain the same.
    • You'll still have the same access to robust futures educational resources.
    • Futures will continue to be traded through Charles Schwab Futures and Forex LLC.
  • What's changing

    • Access statements and tax forms on Schwab website under Accounts > Statements.
    • Futures balances will be reflected in overall balances on Schwab website and on the Schwab website Balances page.
    • Futures positions will not appear on Schwab website or the Schwab Mobile app. (They will still appear on thinkorswim.)
    • When you add funds for futures trading, those funds will be deposited to your linked brokerage account at Schwab.

Margin

If you have margin enabled at TD Ameritrade, your margin feature will move with your account to Schwab. Here’s what you need to know to start using margin at Schwab.

  • What's staying the same

    • You'll be able to utilize margin on all Schwab trading platforms, including thinkorswim.
    • The same margin service team that you work with today is moving to Schwab with you.
    • Enjoy competitive margin interest rates—in some cases lower than what you experience at TD Ameritrade.
    • You'll have the same ability to sign up for margin call alerts via text/SMS. Note that thinkorswim users will continue to receive call alerts through thinkorswim platforms.
  • What's changing

    • You'll be able to view margin requirements from the trade ticket on Schwab website.
    • Margin interest is accrued daily and posted to your account monthly.
    • You'll be able to view your margin rates in your Schwab statements.
    • All margin clients are eligible to short hard-to-borrow securities at Schwab without a special agreement.
    • New terms for margin will apply at Schwab. 

Portfolio margin

If you have portfolio margin enabled at TD Ameritrade, your portfolio margin feature will move with your account to Schwab. Here's what you need to know to start using portfolio margin at Schwab.

  • What's staying the same

    • You'll be able to utilize portfolio margin on all Schwab trading platforms, including thinkorswim, Schwab website, and the Schwab Mobile app.
    • All the tools you currently use will still be available on thinkorswim platforms, with most of the tools also available on Schwab website and the Schwab Mobile app.
    • The same service team that you work with today is moving to Schwab with you.
  • What's changing

    • New terms for portfolio margin will apply at Schwab. 

Brokerage Products: Not FDIC Insured • No Bank Guarantee • May Lose Value

Schwab website and the Schwab Mobile app require a wireless signal or mobile connection. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons. Functionality may vary by operating system and/or device. Mobile carrier data charges may apply.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the options disclosure document titled "Characteristics and Risks of Standardized Options." Supporting documentation for any claims or statistical information is available upon request.

Investing involves risks, including loss of principal. Hedging and protective strategies generally involve additional costs and do not assure a profit or guarantee against loss.

With long options, investors may lose 100% of funds invested.

Spread trading must be done in a margin account.

Multiple leg options strategies will involve multiple commissions.

Covered calls provide downside protection only to the extent of the premium received and limit upside potential to the strike price plus premium received.

Uncovered options strategies involve potential for unlimited risk, and must be done in margin accounts.

Charles Schwab Futures and Forex LLC (NFA Member) and Charles Schwab & Co., Inc. (Member FINRA/SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement prior to trading futures products.

Futures are not protected by the Securities Investor Protection Corporation (SIPC). Futures and futures options are provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify.

Investing involves risk including loss of principal.

The "S&P 500® Index" is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Charles Schwab & Co., Inc. ("CS&Co."). Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). 

Apple is a trademark of Apple Inc., registered in the U.S. and other countries.

The Charles Schwab Corporation ("Charles Schwab") provides a full range of brokerage, banking, and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. ("Schwab"), Member SIPC, offers investment services and products, including the Schwab One® brokerage account. Its banking subsidiary Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender) provides deposit and lending services and products. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons.

TD Ameritrade, Inc., member FINRA/SIPC, is a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

Not all products, services, or investments are available in all countries. Nothing on this website is intended for residents of a particular country, nor is the information provided an offer to sell or a solicitation of an offer to buy securities, products or services, by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

Investing in U.S. securities is not without risk. Investment returns will fluctuate and are subject to market volatility, so that an investor's shares, when redeemed or sold, may be worth more or less than their original cost.

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