Anything better than Charles Schwab?

[benchmark]

I've been lazy, and stayed with Charles Schwab after they bought out TD. 

 

But these guys have been messing up a few times since I've been with them, so I'm a bit fed up with them.

I'm looking for alternatives. My requirements:

a) cheap option trading, I don't do a lot, but they adds up;

b) cheap margin rate, I occasionally it, so it's important;

c) I want be able to buy international stocks, which Schwab doesn't offer. 

 

any suggestions? 

 

fyi, ChatGPT suggest interactive broker, but I've also heard from friends that they are complicated to deal with.

[Dinar]

Schwab does offer international trading, why do you think that they do not?  

[benchmark]

4 minutes ago, Dinar said:

Schwab does offer international trading, why do you think that they do not?  

Hmm, I was trying to buy Fairfax, and all it showed was the ADR in the US. I checked with my account rep, she confirmed it. 

 

Do you have to place the trade with a trade specialist? 

[Red Lion]

I've got a Schwab international trading account and I can't stand it. This is just the consumer brokerage account. I currently have some money in the regular brokerage account I use to roll some T-bills, but I've found IB is easier to deal with for international stocks and options as a lowly retail investor. 

[LC]

IBKR i've not really had difficulties dealing with them. I use the web portal, not the desktop application as I don't do a ton of trading or super complex positions.

[TwoCitiesCapital]

44 minutes ago, LC said:

IBKR i've not really had difficulties dealing with them. I use the web portal, not the desktop application as I don't do a ton of trading or super complex positions.

 

I'll second IB. 

 

Customer support is lacking. As is the UI. 

 

But their execution, costs, and access to int'l markets seems unparalleled. If I had to choose 1 brokerage, it'd be IB. 

[benchmark]

5 minutes ago, TwoCitiesCapital said:

 

I'll second IB. 

 

Customer support is lacking. As is the UI. 

 

But their execution, costs, and access to int'l markets seems unparalleled. If I had to choose 1 brokerage, it'd be IB. 

do they charge additional fees for trading international stocks? 

[TwoCitiesCapital]

They have two tiers - the commission based and commission free. 

 

I've never tried the later as I feel I've always gotten value for their paid tier. 

 

As far as "additional" fees - not really. Every exchange has different fee structures, but I'm typically paying $1-5 per trade (once converted back to USD) and sometimes get PAID for the trade if I'm adding liquidity. 

 

Not to mention, their securities lending shares interest typically covers the cost of most of my commissions in a month since I'm not placing a ton of trades to begin with.

Edited February 7 by TwoCitiesCapital

[Dinar]

1 hour ago, benchmark said:

Hmm, I was trying to buy Fairfax, and all it showed was the ADR in the US. I checked with my account rep, she confirmed it. 

 

Do you have to place the trade with a trade specialist? 

You can buy the US dollar security online without a problem.  The security that trades in CAD can either be bought via a human, or on-line, they do offer an online foreign trading capability to individuals.  IBKR is easier to trade non-US stuff with, and commissions tend to be lower for non-US stuff, however their customer service, in my experience, has been atrocious.  Also, IBKR automatically hedges your currency, that may or may not be a plus for you.  

[benchmark]

43 minutes ago, Dinar said:

You can buy the US dollar security online without a problem.  The security that trades in CAD can either be bought via a human, or on-line, they do offer an online foreign trading capability to individuals.  IBKR is easier to trade non-US stuff with, and commissions tend to be lower for non-US stuff, however their customer service, in my experience, has been atrocious.  Also, IBKR automatically hedges your currency, that may or may not be a plus for you.  

what type of account do you have with Schwab?  I don't see that option in my account to trade directly a foreign stock, such as Fairfax. 

 

What do you mean IBKR hedges your currency? 

[Dinar]

33 minutes ago, benchmark said:

what type of account do you have with Schwab?  I don't see that option in my account to trade directly a foreign stock, such as Fairfax. 

 

What do you mean IBKR hedges your currency? 

In your regular brokerage, you can buy FRFHF.  You can set up a global account with Schwab, that allows you to trade foreign stocks directly.  https://www.schwab.com/global-trading

 

When you buy say a stock that trades in Euros, IBKR will lend the euros, and your account will show: $1000 in USD, E 1000 in a European stock and a loan of E 1000.  

[TwoCitiesCapital]

1 hour ago, Dinar said:

In your regular brokerage, you can buy FRFHF.  You can set up a global account with Schwab, that allows you to trade foreign stocks directly.  https://www.schwab.com/global-trading

 

When you buy say a stock that trades in Euros, IBKR will lend the euros, and your account will show: $1000 in USD, E 1000 in a European stock and a loan of E 1000.  

 

Maybe it's different in Canada? Mine automatically converts the USD to euros in the amount of the purchase. I pay a small fee for the currency conversion ($1-3) and a small fee for the purchase ($1-5). 

[benchmark]

1 hour ago, Dinar said:

In your regular brokerage, you can buy FRFHF.  You can set up a global account with Schwab, that allows you to trade foreign stocks directly.  https://www.schwab.com/global-trading

 

When you buy say a stock that trades in Euros, IBKR will lend the euros, and your account will show: $1000 in USD, E 1000 in a European stock and a loan of E 1000.  

Thanks @Dinar. So global account is a separate account from your regular account? 

 

For IBKR's example, does that mean that you have to pay interest of the loan for the 1000 Euro? 

[zzzyx]

I prefer the E Trade platform for stocks and bonds.   Also have IB, which I really dislike.  An absolutely terrible interface.   Also have Schwab, which is ok for standard fare but seems pretty shitty for anything complicated.  Fidelity is also decent for stocks and bonds, but more restrictive than E Trade on what you can purchase.

[Castanza]

Schwab > everything except international equities, savings rates, margin rates, interface, research, 

 

IBRK > International market access, margin rates 

 

 

[boilermaker75]

I am really disappointed that Schwab got rid of StreetSmart Pro in favor of Thinkorswim.

[73 Reds]

12 hours ago, benchmark said:

I've been lazy, and stayed with Charles Schwab after they bought out TD. 

 

But these guys have been messing up a few times since I've been with them, so I'm a bit fed up with them.

I'm looking for alternatives. My requirements:

a) cheap option trading, I don't do a lot, but they adds up;

b) cheap margin rate, I occasionally it, so it's important;

c) I want be able to buy international stocks, which Schwab doesn't offer. 

 

any suggestions? 

 

fyi, ChatGPT suggest interactive broker, but I've also heard from friends that they are complicated to deal with.

You need a separate International account at Schwab.  I've been with Schwab almost since their inception and only stay with them out of laziness and a convenient branch office.  Biggest gripe is their sweep cash account pays nearly no interest and you have to manually execute a trade to transfer cash into a money market fund and then when you want the proceeds for buying stocks you have to sell the MMF and wait a day for the proceeds to be available for trading.  

[villainx]

I don't know why but I couldn't buy ATZAF in IB.  

 

 

[gfp]

6 minutes ago, villainx said:

I don't know why but I couldn't buy ATZAF in IB.  

 

 

 

There are a lot of situations like that but you should be able to buy CA:ATZ through Interactive Brokers.  Interactive brokers won't let people buy FFXDF either, but has no problem with the actual FIH.U shares

[KCLarkin]

13 hours ago, benchmark said:

I've been lazy, and stayed with Charles Schwab after they bought out TD. 

 

But these guys have been messing up a few times since I've been with them, so I'm a bit fed up with them.

I'm looking for alternatives. My requirements:

a) cheap option trading, I don't do a lot, but they adds up;

b) cheap margin rate, I occasionally it, so it's important;

c) I want be able to buy international stocks, which Schwab doesn't offer. 

 

any suggestions? 

 

fyi, ChatGPT suggest interactive broker, but I've also heard from friends that they are complicated to deal with.

 

Pretty sure IBKR is the best for a, b, and c, so seems like the obvious choice? Plus you get paid interest on any cash balance. Seems like a no-brainer?

 

I don't find IBKR complicated but there are several different user interfaces. Web interface meets my needs just fine.

 

Disclosure: I'm Canadian so not familiar with Schwab. But definitely prefer IBKR to any of the Canadian brokers I've tried. I also own a bunch of IBKR shares.

 

 

[villainx]

1 minute ago, KCLarkin said:

I don't find IBKR complicated but there are several different user interfaces.

 

 

I find IBKR very very confusing and complicated.  But I've only used Schwab, so it likely is just old man get off my lawn syndrome.  

 

[KCLarkin]

46 minutes ago, villainx said:

 

 

I find IBKR very very confusing and complicated.  But I've only used Schwab, so it likely is just old man get off my lawn syndrome.  

 

If you ignore the 95% of the stuff you don't need, the web interface is pretty simple.

 

 

[oscarazocar]

5 minutes ago, KCLarkin said:

If you ignore the 95% of the stuff you don't need, the web interface is pretty simple.

 

 

 

I have used IBKR for years and do all my trading on the mobile app, I find it very easy to use.  Occassionally, I will use the web portal for reporting, which is straightforward.  Contrary to much of what I hear, I have also found customer service there to be very good.  It's easy to get someone on the phone and they usually deal with the issue promptly.  I have had some tax reporting issues on some more complicated stuff, but I don't think that would be easier or handled better elsewhere.

[TwoCitiesCapital]

2 hours ago, villainx said:

 

 

I find IBKR very very confusing and complicated.  But I've only used Schwab, so it likely is just old man get off my lawn syndrome.  

 

I have difficulty with their desktop app - especially doing option spreads. 

 

But the mobile app is

[Munger_Disciple]

If you don't need international trading, go with Schwab. Has local branches & good customer service (for a discount broker) in addition to easy trading platform. If you need international trading, go with IBKR & put up with shitty customer service.