Thinkorswim brokerage account? Anyone have an opinion?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
jlq39
Posts: 438
Joined: Tue Dec 16, 2008 12:26 pm

Thinkorswim brokerage account? Anyone have an opinion?

Post by jlq39 »

Hello,

I'm thinking of opening an account with "Think or Swim". What really draws me to them is their 3 mutual fund purchases per month. I would like to open a ROTH IRA which I was going to open at Vanguard, but I think it might be nice to keep all my accounts in one place and have the option to buy individual dividend stocks for low commissions ($5-$9.95). Does anyone have any experience with Thinkorswim?
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Post by Kenster1 »

Just an FYI....

TD Ameritrade To Acquire Think or Swim

http://media.corporate-ir.net/media_fil ... _Final.pdf
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
User avatar
Russell
Posts: 285
Joined: Fri Feb 23, 2007 1:26 pm
Location: on the Chesapeake Bay
Contact:

Post by Russell »

Hi!

I really like ThinkorSwim, but as Kenster mentions, they are going to be eaten by TD Ameritrade "sometime in the next six months". So it's hard to know what any of the fees are going to be at that point -- and if it no longer looks good, there may still be a tranfer out fee (currently $50).

If you want to take the plunge though, feel free to drop my name -- they have a customer referral program worth a $50.00 credit!! :D

Also, ThinkorSwim's notice about the acquisition no longer appears on their website (that I can find). Their notice can be found here:

http://mediaserver.thinkorswim.com/mark ... tomers.pdf
The best material model for a cat is another, or preferably the same, cat. - A. Rosenblueth and N. Wiener (1945).
Topic Author
jlq39
Posts: 438
Joined: Tue Dec 16, 2008 12:26 pm

Post by jlq39 »

Russell wrote:Hi!

I really like ThinkorSwim, but as Kenster mentions, they are going to be eaten by TD Ameritrade "sometime in the next six months". So it's hard to know what any of the fees are going to be at that point -- and if it no longer looks good, there may still be a tranfer out fee (currently $50).

If you want to take the plunge though, feel free to drop my name -- they have a customer referral program worth a $50.00 credit!! :D

Also, ThinkorSwim's notice about the acquisition no longer appears on their website (that I can find). Their notice can be found here:

http://mediaserver.thinkorswim.com/mark ... tomers.pdf
If you did not have an account, would you still open one now, knowing they are being merged with TD Ameritrade? How do you compare them to someone like say Scottrade?
User avatar
paulob
Posts: 1408
Joined: Tue Feb 20, 2007 6:54 am

Post by paulob »

Is your combined portfolio > $25k? Then consider Wells Fargo.

If under $25k, perhaps even the low commissions of TOS will make buying dividend stocks to be cost inefficient.
Paul
Topic Author
jlq39
Posts: 438
Joined: Tue Dec 16, 2008 12:26 pm

Post by jlq39 »

paulob wrote:Is your combined portfolio > $25k? Then consider Wells Fargo.

If under $25k, perhaps even the low commissions of TOS will make buying dividend stocks to be cost inefficient.
Yes, my initial account would be funded with less than $25K, so commissions do matter. I was attracted to their 3 free mutual fund purchases per month mainly because I could buy vanguard funds through them, but also have the flexibility to trade individual stocks outside of my base foundation of index/mutual funds.

My individual stock purchases will be made in $1-3k blocks, so a $5-$9 commission on the purchase is quite low. I realize you can get 100 free trades a year with a Wells Fargo account if you have a balance over $25k, but I'm not particularly fond of there website and platform. But maybe once I get over $25k, I will consider it. For now, I just want a decent broker that charges less than $10/trade and will let me cheaply purchase index funds, etc.
User avatar
paulob
Posts: 1408
Joined: Tue Feb 20, 2007 6:54 am

Post by paulob »

Are the stocks being bought in a taxable account and the funds in the Roth? If so, would you consider two brokers?
Paul
User avatar
Russell
Posts: 285
Joined: Fri Feb 23, 2007 1:26 pm
Location: on the Chesapeake Bay
Contact:

Post by Russell »

jlq39 wrote:If you did not have an account, would you still open one now, knowing they are being merged with TD Ameritrade? How do you compare them to someone like say Scottrade?
No, I wouldn't.

I moved from Scottrade to ThinkorSwim several years ago (when Scottrade changed their mutual fund fee structure) and have been very pleased with ThinkorSwim. No maintainance fees, great rates for stock and option trades, and up to three free mutual fund trades each month. The only thing I've ever found lacking is maybe a bond desk (like Vanguard or Fidelity) -- I would have liked to have been able to pick and choose TIPS last year when things got all out of whack.

But I don't think I would join ToS with everything up in the air right now (and with the transfer out penalty). But by the same token, I myself am not planning to pack up and move away until I get more details on the new structure.

Best,
Russell
The best material model for a cat is another, or preferably the same, cat. - A. Rosenblueth and N. Wiener (1945).
Topic Author
jlq39
Posts: 438
Joined: Tue Dec 16, 2008 12:26 pm

Post by jlq39 »

paulob wrote:Are the stocks being bought in a taxable account and the funds in the Roth? If so, would you consider two brokers?
Yes, a taxable account for the individual stocks. I have a separate account for a ROTH IRA that I only purchase index / mutual funds in. The taxable account is more for "extra" investing in short and long term stock positions. I guess I'm lucky in the fact that, after all my retirement investing through 401k and ROTH IRA, that I have money left over and would like to use it to build a decent taxable account. Tax diversification being a priority.
Topic Author
jlq39
Posts: 438
Joined: Tue Dec 16, 2008 12:26 pm

Post by jlq39 »

Russell wrote:
jlq39 wrote:If you did not have an account, would you still open one now, knowing they are being merged with TD Ameritrade? How do you compare them to someone like say Scottrade?
No, I wouldn't.

I moved from Scottrade to ThinkorSwim several years ago (when Scottrade changed their mutual fund fee structure) and have been very pleased with ThinkorSwim. No maintainance fees, great rates for stock and option trades, and up to three free mutual fund trades each month. The only thing I've ever found lacking is maybe a bond desk (like Vanguard or Fidelity) -- I would have liked to have been able to pick and choose TIPS last year when things got all out of whack.

But I don't think I would join ToS with everything up in the air right now (and with the transfer out penalty). But by the same token, I myself am not planning to pack up and move away until I get more details on the new structure.

Best,
Russell
Thanks Russell for your insight. As I stated in an earlier post, this is "extra" investing money, so it's not like I have to make a decision right now. I suppose having it sit in my money market right now drawing 3% isn't the worst thing in this climate. Maybe I'll do some more research and see how the merger pans out with ToS and evaluate them later on.
User avatar
paulob
Posts: 1408
Joined: Tue Feb 20, 2007 6:54 am

Post by paulob »

jlq39 wrote:
paulob wrote:Are the stocks being bought in a taxable account and the funds in the Roth? If so, would you consider two brokers?
Yes, a taxable account for the individual stocks. I have a separate account for a ROTH IRA that I only purchase index / mutual funds in. The taxable account is more for "extra" investing in short and long term stock positions. I guess I'm lucky in the fact that, after all my retirement investing through 401k and ROTH IRA, that I have money left over and would like to use it to build a decent taxable account. Tax diversification being a priority.
With TOS up in the air, maybe consider Scottrade and VG?

It does not meet your desire of only one broker, but it may be the best 2 man show, based on your trading needs.
Paul
Topic Author
jlq39
Posts: 438
Joined: Tue Dec 16, 2008 12:26 pm

Post by jlq39 »

paulob wrote:
jlq39 wrote:
paulob wrote:Are the stocks being bought in a taxable account and the funds in the Roth? If so, would you consider two brokers?
Yes, a taxable account for the individual stocks. I have a separate account for a ROTH IRA that I only purchase index / mutual funds in. The taxable account is more for "extra" investing in short and long term stock positions. I guess I'm lucky in the fact that, after all my retirement investing through 401k and ROTH IRA, that I have money left over and would like to use it to build a decent taxable account. Tax diversification being a priority.
With TOS up in the air, maybe consider Scottrade and VG?

It does not meet your desire of only one broker, but it may be the best 2 man show, based on your trading needs.
I'll probably be doing just that. Not sure which taxable account I'll end up with, but my ROTH IRA will be at Vanguard.
billern
Posts: 1079
Joined: Fri Dec 07, 2007 3:08 pm

Post by billern »

Russell wrote:Hi!

I really like ThinkorSwim, but as Kenster mentions, they are going to be eaten by TD Ameritrade "sometime in the next six months". So it's hard to know what any of the fees are going to be at that point -- and if it no longer looks good, there may still be a tranfer out fee (currently $50).

If you want to take the plunge though, feel free to drop my name -- they have a customer referral program worth a $50.00 credit!! :D

Also, ThinkorSwim's notice about the acquisition no longer appears on their website (that I can find). Their notice can be found here:

http://mediaserver.thinkorswim.com/mark ... tomers.pdf
Yep. I am sad about this. They were a great broker for the free mutual fund trades, relatively low commissions on stock trades, and support.

As the consolidation looms, I am using my free trades to sell out of my mutual fund positions (all at a loss) and replacing them with ETFs. Depending on the new platform and fee structure, I may or may not stay with them after the integration completes.

Also, note the transfer out fee is slightly higher for retirement accounts. It should be fairly easy to get most brokers to absorb the fee if you transfer assets to them.
Topic Author
jlq39
Posts: 438
Joined: Tue Dec 16, 2008 12:26 pm

Post by jlq39 »

billern wrote:
Russell wrote:Hi!

I really like ThinkorSwim, but as Kenster mentions, they are going to be eaten by TD Ameritrade "sometime in the next six months". So it's hard to know what any of the fees are going to be at that point -- and if it no longer looks good, there may still be a tranfer out fee (currently $50).

If you want to take the plunge though, feel free to drop my name -- they have a customer referral program worth a $50.00 credit!! :D

Also, ThinkorSwim's notice about the acquisition no longer appears on their website (that I can find). Their notice can be found here:

http://mediaserver.thinkorswim.com/mark ... tomers.pdf
Yep. I am sad about this. They were a great broker for the free mutual fund trades, relatively low commissions on stock trades, and support.

As the consolidation looms, I am using my free trades to sell out of my mutual fund positions (all at a loss) and replacing them with ETFs. Depending on the new platform and fee structure, I may or may not stay with them after the integration completes.

Also, note the transfer out fee is slightly higher for retirement accounts. It should be fairly easy to get most brokers to absorb the fee if you transfer assets to them.
Are there any particular brokers you are looking at if you do decide to move?
esquire415
Posts: 5
Joined: Wed Feb 04, 2009 5:39 pm

I HATES FEES!!!

Post by esquire415 »

I actually plan to transfer my IRA from Zecco to TOS. Zecco charges a $30 annual maintenance fee and after the disaster of having no more free trades, Zecco is no longer a good deal. Why even charge the fee if you're going to charge commissions? Where is free there? How many people do you know who has 25k in their IRA, let alone Zecco IRA customers with that amount? It takes 5 years to build that assuming you are maxing it out. I was forced to maintain $2500 months after I opened it just to get the 10 free trades. It was good while it lasted, trading ETFs in an IRA.

Here's a strategy. Zecco charges $30 to transfer out my IRA. TOS will pay that fee if you transfer $3500 to them, however they charge $20 Penson Financial fee and $35 ACAT fee for a total of $55. The good thing is, they will let you transfer out for free if you decide to leave within 30 days. So if I leave and transfer to Scottrade or WellsFargo (where I have free trades) I get out without any fees. Congress should eliminated "fees for not doing business" with these brokerage firms...they suck!
noam
Posts: 7
Joined: Sat Apr 05, 2008 8:32 pm

Post by noam »

I have a account with them which I use primarily for trading options on stocks. I love their platform and all the tools which they provide for free. They are leaps and bounds above all the other brokerages I looked at when I was shopping around (wanted to get away from Scottrade). The options commissions are a bit high but there's no cancel fees/data fees etc so I think it works out in my favor overall. They don't nickel and dime you to death like other brokerages such as Zecco or Etrade. The customer service has been great the few times I've needed it. Emails get answered within 15 minutes, online chat about 2 minutes, and by phone takes about 5 minutes to reach a real person. I also love that they offer futures, options on futures, and forex all on one platform but I'm guessing that's not something you're interested in. I'm cautiously optimistic about the merger with TD Ameritrade. I'm willing to wait and see what happens because they have been good to me in the past.

I thought I should clarify their stock commissions a bit. They offer 2 choices. Either you can pay 1 and a half cent per share ($5 minimum) and have your order routed directly to the exchanges or pay a flat $9.95 and get filled through their internalized matching system. Both choices were pretty good when it comes to price improvement and execution speeds. If your going to be trading size you have the option to pick whichever works best for you.

I haven't bought mutual funds through them yet so can't help you there. I only buy Vanguard funds and I can do that directly from their site.
Post Reply