TIAA vs Charles Schwab in 2024


TIAA and Charles Schwab Comparison


TIAA serves medical, government, and academic employees, but these investors could also consider opening a brokerage account at Charles Schwab. Schwab offers many services that TIAA struggles to match. Here’s a breakdown:


Investing in Funds


Using Schwab’s mutual fund screener, we found 5,819 mutual funds available to new investors. While this may seem like a modest number, 3,404 of these funds offer no transaction fees and no loads. One standout feature on the Schwab website is free access to the OneSource Select List, which includes about 175 funds pre-screened by Schwab investment advisors for their potential outperformance.


Schwab Mutual Funds


For ETF traders, Schwab offers all exchange-traded funds with zero trading fees.

TIAA also offers mutual and exchange-traded funds, with over 6,500 mutual funds available. However, it’s unclear how many of these are no-load, no-transaction-fee funds, as TIAA’s screener lacks the ability to filter by these criteria.

Schwab takes the win in this category.


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Charles Schwab: Get $0 commissions + satisfaction guarantee at Charles Schwab.

TIAA: Open a TIAA investment account.



Financial Education & Research


Schwab’s website is packed with educational resources, accessible under the ‘Research’ tab in the top menu. Most of these resources are found in the ‘Learning Center,’ but useful information is spread throughout the site.

We found articles, videos, and webcasts on topics like options trading, technical analysis, commodities, and market trends. Additionally, Schwab offers a discussion board for its customers. Schwab’s screeners are highly functional, allowing for detailed investment searches, and security profiles include extensive information, such as free equity reports. For example, there are nine reports available for Citigroup.

TIAA also offers educational content, including news articles, an income planner, retirement calculators, and more. However, TIAA’s resources are less comprehensive than Schwab’s. TIAA’s security screeners are effective but lack the depth of Schwab’s, and its security profiles provide less information. For Citigroup, TIAA only offers one research report.


TIAA vs Schwab


TIAA’s screeners aren’t as user-friendly or as detailed as Schwab’s. Schwab’s site also provides extensive information on funds, including a search feature for Schwab research reports, top-performing ETF categories, and money market news. TIAA’s fund center is more limited, offering just a comparison tool and screener.

Schwab is the clear winner in this area.


Trading Software


TIAA customers can trade securities on the company’s website, but the platform is basic. TIAA doesn’t offer a browser or desktop trading system. The website’s charting tools are limited, with a few technical indicators and two company events. The trade ticket is also basic, and the trade bar can provide security data but cannot submit orders.


TIAA Trading


Schwab, in contrast, offers both a browser and desktop platform. Schwab’s charting is advanced, with tick-by-tick data on the browser platform and full-screen mode on the desktop. The desktop system includes Level 2 quotes and direct-access routing at no extra cost, along with a simulated trading mode. The browser platform supports complex order types, which are also available on the desktop.

TIAA falls short in this comparison.


Mobile Platforms


Schwab’s mobile app features a live feed of CNBC at no additional cost, along with bill pay, mobile check deposit, and funds transfer. Options and mutual funds can be traded on the app. The trade ticket is straightforward, and extended-hours trading is available. Charting is decent, with horizontal viewing and several tools. Market indexes are displayed alongside news articles and an audio market commentary from Schwab.


TIAA Mobile


TIAA’s mobile app, on the other hand, lacks option chains, charting capabilities, and features like check deposit, funds transfer, or video financial news. The app’s order form is basic and not user-friendly, although mutual funds can be traded.


Schwab Mobile


Schwab wins this category.


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Charles Schwab: Get $0 commissions + satisfaction guarantee at Charles Schwab.

TIAA: Open a TIAA investment account.



Recommendations


For day traders and those needing advanced trading software, Schwab is the better choice over TIAA. While TIAA’s tools are adequate for basic orders, they aren’t designed for active trading.

For options trading, Schwab is also the recommended option for the same reasons.

In terms of portfolio management, Schwab outshines TIAA, especially with its investment advice services that start with a 0.00% fee structure.

For alternative investments, Schwab has an advantage due to its futures trading service, which TIAA doesn’t offer.

For banking, Schwab is preferable, thanks to its unlimited global ATM fee rebate program, which outperforms TIAA’s more limited service.


TIAA vs Charles Schwab: Which is Better?


TIAA fell short in every category we examined. While TIAA has a solid client base, Schwab offers far more in terms of services and features.


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Updated on 8/23/2024.