thinkorswim vs. TradeStation: Points to Know
• Plenty of advanced trading tools are available with thinkorswim and TradeStation.
• TradeStation and thinkorswim offer multiple software platforms.
• Simulated trading is available on both thinkorswim and TradeStation.
TradeStation vs. thinkorswim Introduction
Are you looking for top-tier trading software with low fees? If so, TradeStation and thinkorswim from Charles Schwab are two services worth considering.
Pricing
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Thinkorswim
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$0
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$49.99 ($0 to sell)
|
$0.65 per contract
|
$0
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$0
|
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Tradestation
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$0
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$14.95
|
$0.50 per contract
|
$120*
|
$35
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Thinkorswim
|
|
|
|
|
|
|
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Tradestation
|
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Promotions
Charles Schwab: Thinkorswim + $0 trades + satisfaction guarantee at Charles Schwab.
TradeStation:
Get up to $150 cash bonus with a $5,000+ qualifying deposit.
Asset Classes and Accounts
thinkorswim is a trading platform offered to Schwab customers. The software can place orders for these asset classes:
- Options
- Forex
- Stocks (including OTC stocks)
- ETFs
- Closed-end funds
- Futures
Through the Schwab website, but not on thinkorswim, it’s possible to trade mutual funds and bonds.
Over at TradeStation, we see something similar. The broker-dealer offers the same assets Schwab provides except forex. Bonds must be traded through a rep, while mutual funds are available on the website.
Every asset at either firm must be traded inside an account, and both brokerages offer several choices. TradeStation customers can open individual, joint, entity, and retirement accounts. Schwab has these plus many other account types, including custodial and 401k accounts. thinkorswim and TradeStation’s software can be used with any tax structure.
Winner: Schwab/thinkorswim
Margin Services
thinkorswim and TradeStation both focus on advanced trading for experienced investors, so margin is available.
You can’t switch from cash to margin status on the thinkorswim platform, although Schwab’s website does have that tool (look under the Profile button in the upper-right corner of the website). Going the other way, from margin to cash, requires a phone call. TradeStation has the same policy for either change.
When it comes time to pay for borrowed funds, the two firms are fairly close. TradeStation customers pay
either 10.75% or 11.75%,
while Schwab has five tiers ranging from 10.075% to 11.825%.
Neither thinkorswim nor TradeStation shows margin requirements on its trading platforms for specific securities, although both firms show general numbers on their websites, and TradeStation has a list of securities on its site with special requirements.
Winner: Pretty close overall
Websites
To kick off the trading experience, TradeStation offers multiple platforms. The broker-dealer has a crypto platform, an options and futures platform, and a standard platform. The last one can trade futures and securities. It has 14 order types, including bracket and trailing orders. There are many pre-set option spreads, and charts have several graphing tools.
thinkorswim shows up here as a browser platform. This is the only platform Schwab has on its website, although the site itself has several other tools. thinkorswim here has two trade tickets and 5 order types. There are a few built-in option spreads, and charts have studies and a handful of drawing tools. A stock screener, which isn’t available on TradeStation’s browser platform, is included here.
Winner: thinkorswim
Mobile Platforms
Continuing the comparison, thinkorswim is available on mobile. The order ticket adds two order types (market/limit on close). Charts also have more technical studies. Time & sales data is missing, although CNBC video news appears.
TradeStation’s mobile app doesn’t have video news, although it does have more order types than thinkorswim. These include bracket and OSO orders. Charts, however, can’t be rotated horizontally, and there are only a few technical studies. Both apps have simulated trading and lots of built-in option strategies.
Winner: thinkorswim
Desktop Programs
TradeStation 10 is TradeStation’s newest desktop platform. It has many advanced features, including a walk-forward optimizer, a quick-trade window, trading algorithms, high-level option tools, and much more.
thinkorswim on desktop hits its peak with many powerful tools, including an economic calendar, hundreds of technical studies, forex dealing boxes, and thinkScript®, which can be used to build custom tools.
Winner: thinkorswim
Day and Swing Trading
Since TradeStation and thinkorswim are often used for short-term trading, it’s worth comparing day-trading tools.
PDT Status: Both thinkorswim and TradeStation 10 have day-trade counters to track an account’s day trades.
Day-Trading Workspaces: Only TradeStation 10 has a built-in day-trading layout, although custom layouts can be made on thinkorswim desktop.
Short Positions: A bearish trade can be placed on thinkorswim or TradeStation. Only TradeStation has a separate sell short button. TradeStation, but not thinkorswim, has a short-locate tool.
Direct-access Routing: On thinkorswim, we counted only 3 routing destinations. On TradeStation’s software, we found 17.
Level II Quotes: Available at both firms. On TradeStation 10, click on the Market Depth app on the Apps page. On thinkorswim, click on the plus sign (+) in the bottom-left corner and then select the link for Level II. They are free on thinkorswim but not at TradeStation.
Maker-Taker Fees: Not available at either firm.
Extended-hours Trading: Pre-market and post-market trading are available at both firms in many securities. Cryptocurrencies trade 24/7 at TradeStation, and thinkorswim offers overnight trading in a small list of ETFs.
Winner: TradeStation
Additional Services
Fractional Shares: Only whole-share trading is available on thinkorswim and TradeStation’s
software (with the exception of cryptocurrencies).
IPOs: Upcoming stock launches can be traded on Schwab’s website (but not on thinkorswim) and through ClickIPO with a TradeStation account.
DRIP Service: thinkorswim has it; TradeStation does not.
Individual Retirement Accounts: thinkorswim and TradeStation’s software can be used with IRAs. Schwab charges no IRA fees, while TradeStation has a $35 annual fee and $50 closeout fee (crypto and futures IRAs have their own fee schedules).
Fully-Paid Stock Lending: Available at both brokerage firms.
Winner: Pretty close
Promotions
Charles Schwab: Thinkorswim + $0 trades + satisfaction guarantee at Charles Schwab.
TradeStation:
Get up to $150 cash bonus with a $5,000+ qualifying deposit.
Our Recommendations
Small Accounts: Definitely thinkorswim.
Active Equity Trading: thinkorswim.
Long-Term Investing & Retirement Saving: Schwab has financial advisors, branch locations, and lots of other long-term resources that TradeStation lacks.
Beginners: TradeStation and thinkorswim are designed for experienced traders. A managed account through
Schwab would be a good idea, though.
TradeStation vs thinkorswim: Final Verdict
Experienced traders can do well with either software platform in this comparison. Everyone else should stick
to Schwab.
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Updated on 12/26/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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