thinkorswim vs. TradeStation: Points to Know
• Many advanced trading tools are available with thinkorswim and TradeStation.
• TradeStation and thinkorswim have multiple software platforms.
• Simulated trading is possible on both thinkorswim and TradeStation.
TradeStation vs. thinkorswim Introduction
Are you looking for the absolute best in trading software with the lowest possible fees? If so, TradeStation and thinkorswim from Charles Schwab are two trading services worth checking out.
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)
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$0.65 per contract
|
$0
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$0
|
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Tradestation
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$0
|
$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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|
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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 available to Schwab customers. The software can submit orders for the following 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 find a similar situation. The broker-dealer offers the same assets Schwab delivers 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 in an account, and both brokerage houses offer several choices. TradeStation customers can open individual, joint, entity, and retirement accounts. Schwab has these plus a long list of esoteric accounts, 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 emphasize advanced trading for experienced investors. So of course margin is available.
It is not possible to switch from cash to margin status on the thinkorswim platform, although Schwab’s website does have such a tool (look under the Profile button in the upper-right corner of the website). Going in the other direction, 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, both firms are pretty close. TradeStation customers pay
either 12% or 13% ,
while Schwab has five tiers ranging from 11.325% to 13.075%.
Neither thinkorswim nor TradeStation displays margin requirements on its trading platforms for specific securities, although both firms display 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 of the trading experience, TradeStation delivers multiple platforms. The broker-dealer has a crypto platform, options futures platform, and a standard platform. The last of the three can trade futures and securities. It has 14 trade types, including bracket and trailing orders. There are many pre-installed option spreads, and charts have several graphing tools.
thinkorswim makes its first appearance 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 integrated option spreads, and graphs have studies and a handful of drawing tools. A stock screener, which isn’t available on TradeStation’s browser platform, makes an appearance.
Winner: thinkorswim
Mobile Platforms
Continuing the fight, thinkorswim is available in mobile format. The order ticket has two new order types (market/limit on close). And charts have more technical studies. Time & sales data is lost, although video news from CNBC 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 integrated option strategies.
Winner: thinkorswim
Desktop Programs
TradeStation 10 is TradeStation’s latest desktop platform. It has a lot of advanced features, including a walk-forward optimizer, a quick-trade window, trading algorithms, high-level option tools, and so much more.
thinkorswim in desktop mode reaches its zenith with all sorts of bells and whistles, including an economic calendar, hundreds of technical studies, forex dealing boxes, and thinkScript®, which can be used to create custom digital tools.
Winner: thinkorswim
Day and Swing Trading
Because TradeStation and thinkorswim are often used for short-term trading, day trading resources are worth considering.
PDT Status: Both thinkorswim and TradeStation 10 have day-trade counters to keep track of an account’s day trades.
Day-Trading Workspaces: Only TradeStation 10 has a pre-installed layout for day trading, although it’s possible to create custom layouts on thinkorswim desktop.
Short Positions: A bearish trade can be made on thinkorswim or on TradeStation’s software. Only TradeStation has a discrete button for sell short. TradeStation, but not thinkorswim, has a short-locate tool.
Direct-access Routing: On thinkorswim, we counted just 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: Imminent 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 seasoned pros. A managed account through
Schwab would be a good idea, though.
TradeStation vs thinkorswim: Final Verdict
Experienced traders can’t go wrong either software platform investigated here. Everyone else should stick
to Schwab.
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Updated on 10/7/2024.
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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