Trading stocks doesn’t have to be complicated, but if you’re looking for more than just “buy the dip”, there are several platforms for you.
And while TD Ameritrade and thinkorswim are part of Charles Schwab, they are very different platforms for different types of investors. So which one is best for you?
We have reviewed features, fees, trading tools, available assets, customer service and security to help you determine which trading platform suits your investment style.
thinkorswim and TD Ameritrade review
thinkorswim and TD Ameritrade offer commission-free stock and ETF trading, while TD Ameritrade clients can use both the classic platform and the thinkorswim platform.
Of the two, TD Ameritrade is ideal for beginner investors who want to learn about stock trading, with an extensive educational library. On the other hand, thinkorswim is an advanced trading platform with the ability to trade options, forex, futures, and even the ability to “paper trade” counterfeit money.
| thinker | TD Ameritrade | |
|---|---|---|
| Trading fees | ● None for stocks, bonds, ETFs. ● $0.65 per option contract ● $2.25 per futures contract. ● Up to $74.95 for mutual fund transactions. ● $25 broker commission |
● None for stocks, bonds, ETFs. ● $0.65 per option contract ● Up to $74.95 for mutual fund transactions. |
| Pay per account | Transfer $75 (full) | Transfer $75 (full) |
| Trading assets | ● Promotions ● Bonds ● Mutual funds ● ETFs ● Options ● American Depositary Receipts (ADRs) ● IPO (on certain accounts) |
● Promotions ● ETFs ● Futures ● Options ● American Depositary Receipts (ADRs) ● Forex ● IPO (on certain accounts) |
| Account Minimums | $0 | $0 |
| Mobile app available? | Yes | Yes |
| Education | News, commentary and research from over a dozen external sources including Morningstar and Reuters. | News, commentary and research from over a dozen external sources including Morningstar and Reuters. |
| Customer service | ● 24/7 phone, email and chat ● In person at local US offices. |
● 24/7 phone, email and chat ● In person at local US offices. |
About Thinkorswim
thinker (yes, there are no capital letters in the name of the platform) is an advanced trading platform that was acquired by TD Ameritrade in 2009 and offers advanced charts, multiple order types and a wide range of assets to trade. The thinkorswim platform is designed for active and professional traders who need access to top-notch market research, hundreds of chart settings, and advanced options trading options. In addition to trading stocks and ETFs, users can also trade options, stock futures, and foreign exchange (forex).
As part of the TD Ameritrade family, the thinkorswim platform offers the same deep level of research and analysis, drawing on information from over a dozen third-party research firms such as Morningstar and Reuters. You can also access live TV programs on the TD Ameritrade network on weekdays that provide live commentary and analysis.
The thinkorswim mobile app offers almost the same functionality as the web version, with access to all advanced trading tools, as well as multi-way options, futures and forex trading.
Overall, thinkorswim is one of the best trading platforms for free stock and ETF trading, as well as advanced option strategies and access to foreign exchange and international assets through American Depositary Receipts (ADRs).
Learn more about thinkorswim in our full TD Ameritrade review.
About Trading House Ameritrade
TD Ameritrade is a major online broker offering a wide selection of stocks and ETFs, as well as access to a large library of educational content. Designed for new investors, TD Ameritrade’s web and mobile platforms offer a simple user interface as well as access to educational articles, videos and tutorials to help you learn about a wide range of investment and personal finance topics.
TD Ameritrade allows you to invest in stocks, bonds, ETFs, mutual funds, as well as trade futures and options contracts, and access certain IPOs. Similar to the thinkorswim platform, TD Ameritrade offers access to a vast library of research and analytics data from vendors such as Reuters and Morningstar. TD Ameritrade users also have access to the TD Ameritrade network, which broadcasts market news and analysis five days a week.
The TD Ameritrade platform is ideal for new users and makes it easy to invest with a simple order form as well as the ability to set up recurring investments. The website and mobile app offer a customizable dashboard, stock quotes, price alerts, and the ability to create and track your favorite investments on a watchlist.
Overall, TD Ameritrade is a full-service broker that is ideal for beginners who want to dive into trading, as well as long-term investors who want access to free stocks, bonds, and ETFs, as well as an extensive library of educational content.
Try TD Ameritrade or read our full review.
Investment performance of thinkorswim and TD Ameritrade
Both thinkorswim and TD Ameritrade offer access to most of the same investments, such as stocks and ETFs, as well as options trading. Both offer zero commissions or fees on stock and ETF trades, helping you reduce costs and increase your overall portfolio returns.
Although the thinkorswim platform is designed for active traders, it does not measure its performance as all investors will have a different portfolio. TD Ameritrade is similar in that the set of user portfolios will differ from client to client, so there is no performance benchmark for most accounts.
However, TD Ameritrade offers a robotic advisory service known as Essential Portfolios that helps users build a diversified portfolio of low cost ETFs based on your goals and risk tolerance. These portfolios have a different mix of investments per user, but the overall performance of these portfolios is listed on the TD Ameritrade website.
Here is a summary of TD Ameritrade Essential Portfolios investment performance as of May 2022:
| 1 year | 3 years | 5 year old | |
|---|---|---|---|
| Conservative | -2.10% | 4.26% | 3.98% |
| Moderate | -0.53% | 6.14% | 5.50% |
| Moderate growth | 0.72% | 7.62% | 6.67% |
| Growth | 2.62% | 10.35% | 8.81% |
| aggressive | 4.23% | 12.06% | 10.21% |
Pros and cons of thinkorswim and TD Ameritrade
Thinkorswim professionals
- Advanced charting and trading tools.
- Access to more markets including forex and futures trading.
- Well designed mobile app.
Advantages of TD Ameritrade
- Large library of educational content.
- Very intuitive mobile app.
- Trade stocks and ETFs without commission.
minuses
- Large outgoing transfer fee of $75 (full).
- No access to bonds or mutual funds.
- May be too complicated for beginners.
Cons of TD Ameritrade
- No access to forex or futures trading.
- High mutual fund fees (up to $74.95).
- No fractional share investment.
Why choose Thinkorswim
Advanced Trading Tools
thinkorswim is one of the best platforms for active and professional traders with access to hundreds of charting tools and indicators, sophisticated options trading (up to four steps), as well as futures and forex trading.
Features of social trading
On the thinkorswim desktop platform, you can access community features, including chats, as well as the ability to share your thoughts on the myTrade blog. Social sentiment is also measured and charted by tracking Twitter mentions of stocks and other assets on the platform.
Reserve analysis and research
Both thinkorswim and TD Ameritrade offer access to a wide range of research and analytics, but the thinkorswim desktop app supports live streams from the TD Ameritrade network as well as CNBC for up-to-date market news. In addition to research and analysis from Morningstar, Reuters and S&P Capital IQ.
Why choose TD Ameritrade
Large study library
TD Ameritrade’s library of training videos, guides and trainings is one of the largest among online brokers and helps new users to learn about a wide range of topics related to personal finance. This includes basic topics such as budgeting as well as advanced trading strategies such as option trading.
24/7 customer support
TD Ameritrade offers 24/7 customer support via email, phone and online chat. You can also contact representatives via Twitter if you wish. In addition to 24/7 support, there are over 175 physical locations where you can access live human support. Support is available for both customers and non-customers.
Easy to use
TD Ameritrade is extremely user friendly and is designed for new traders and investors who want to learn by investing. With educational content built into the mobile app, a simple investment interface and 24/7 customer support, TD Ameritrade is one of the best online brokers for new investors.
Summary
Thinkorswim and TD Ameritrade are part of the same parent company and offer access to many of the same features, such as no commissions or fees on stock and ETF trading, market research, and live streaming of the TD Ameritrade network. Both platforms offer high-quality mobile apps that give you access to investment tools that are always at your fingertips.
But while thinkorswim is ideal for more advanced traders who need access to a huge selection of trading tools and features, TD Ameritrade is ideal for beginners who want to learn about investing while diving into the market. While Thinkorswim is intuitive for professionals, it is a complex platform that can be confusing for new users unfamiliar with charting and stock trading tools.
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