Schwab vs. thinkorswim: What is the Difference?

Charles Schwab and thinkorswim offer distinct features tailored to different types of investors. This detailed comparison will help you determine whether the comprehensive services of Schwab or the advanced trading capabilities of thinkorswim align better with your financial goals.

Key Takeaways

Ownership matters: thinkorswim (ToS) is a trading platform owned by Charles Schwab; it was founded by Tom Sosnoff, sold to TD Ameritrade in 2009, and became part of Schwab after the 2020 Schwab–TD Ameritrade merger.
Different purposes: The Schwab platform/app targets buy-and-hold investors, while thinkorswim focuses on active traders who need advanced charting, options, and futures functionality.
Single login, two experiences: Schwab clients can use both platforms with one account—no extra fees for thinkorswim.

Schwab

Access to thinkorswim charting tools
Great overall investing platform
Banking and investing options

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thinkorswim

Custom scripting and advanced charting
Ability to backtest & paper trade
Free for Schwab users

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Overview of Charles Schwab

Charles Schwab is a powerhouse in the brokerage industry, known for its commitment to making investing accessible to everyone. Founded in 1971, Schwab has grown to be a major player in the financial services sector, emphasizing long-term, low-cost investing strategies. The platform suite includes Schwab.com, Schwab Mobile, and the more advanced StreetSmart Edge, alongside thinkorswim, catering to a range of investment needs from casual to professional.

Overview of thinkorswim

thinkorswim, originally developed by Tom Sosnoff and a group of former CBOE traders, was designed with the active trader in mind. Launched in 1999, it became part of TD Ameritrade in 2009 and was subsequently integrated into Charles Schwab’s offerings following their merger in 2020. The platform is renowned for its robust suite of tools including thinkScript for custom scripting, on-chart trading, and paperMoney®, a simulation tool for practice trading.

Schwab App vs thinkorswim App

Core Purpose

The Schwab app is primarily designed for account management and passive investing, making it ideal for long-term investors. In contrast, the thinkorswim app is geared towards active trading and analytics, offering detailed charting capabilities and advanced trading features.

Supported Asset Classes

Both platforms support a variety of asset classes, but they cater to different types of investors:

Schwab: stocks, ETFs, mutual funds, basic options
thinkorswim: includes all the above plus multileg options, futures & futures options, and forex (paper trading only)

Automation & Recurring Investing

Schwab excels with its Automatic Investment Plan (AIP), which allows for easy setup of recurring investments. thinkorswim, while lacking native recurring investment features, offers workarounds through custom scripts and alerts for traders who wish to automate their strategies.

Platform Ownership & History

Year	Milestone
1999	thinkorswim founded by Tom Sosnoff & team
2009	Sold to TD Ameritrade for $606 million
2020	Schwab acquires TD Ameritrade (deal closes Oct 2020)
2023–25	thinkorswim fully rebranded under Schwab

Feature-by-Feature Comparison

Feature	Schwab Platform	thinkorswim
Charting depth	Basic + StreetSmart Edge	Professional-grade, highly customizable
Screeners/scans	Schwab Stock Screener	thinkScript, real-time scans
Options tools	Basic chain & Probability Calculator	Strategy Roller, Analyze tab, Risk Profile
Futures trading	Limited (web only)	Integrated with ladders & advanced order types
Paper trading	None	Yes (paperMoney®)

Costs & Commissions

Both platforms offer competitive pricing with $0 stock and ETF trades and $0.65 per listed options contract. Futures contracts are priced at $2.25 each. There are no platform fees for either interface, and real-time data is free with a funded account.

Ease of Use & Learning Curve

Schwab is highly intuitive for beginners, offering robust support and educational resources. thinkorswim, while offering unmatched flexibility and a range of advanced features, has a steeper learning curve that may be more suited to experienced traders.

Ideal User Profiles

Use Schwab if you prioritize automated index-fund contributions, integrated banking, and a straightforward user experience. Opt for thinkorswim if your focus is on actively trading options and futures, relying heavily on technical analysis, or requiring custom indicators for your trading strategy.

Pros & Cons Summary

Schwab Pros

Simple recurring investing & robo-advisor
Integrated banking & cash-management
24/7 customer support

Schwab Cons

Basic charting
Fewer advanced order types

thinkorswim Pros

Institutional-grade analytics
Paper trading sandbox
Custom scripting (thinkScript)

thinkorswim Cons

Steeper learning curve
Resource-heavy desktop app

How to Decide

To choose between Schwab and thinkorswim, consider your trading frequency and the products you intend to trade. List your must-have tools, such as advanced greeks or custom charts, and take advantage of the single Schwab login to test drive both platforms. Start with core portfolio automation in Schwab and explore tactical trades in thinkorswim.

FAQ

Is thinkorswim still part of TD Ameritrade?

No. TD Ameritrade was acquired by Charles Schwab in 2020; thinkorswim is now fully under the Schwab umbrella.

What’s the main difference between the Schwab and thinkorswim apps?

The Schwab app focuses on long-term investing and account management, while thinkorswim targets active traders with advanced charting, options analytics, and futures capabilities.