We present the design and performance of a low-cost, reciprocal, compact free-space terminal employing tip/tilt pointing compensation that enables optical two-way time-frequency transfer over free-space links across the turbulent atmosphere. The insertion loss of the terminals is ∼1.5 dB with total link losses of 15 dB, 24 dB, and 50 dB across horizontal, turbulent 2-km, 4-km, and 12-km links, respectively. The effects of turbulence on pointing control and aperture size, and their influence on the terminal design, are discussed.