tastytrade vs. thinkorswim

Today, there’s a vast array of online financial services designed to help every type of investor. Some businesses find niches in the market and develop newer platforms to address those needs. That’s where tastytrade and thinkorswim come in. These two investing services have made a name for themselves by balancing low costs with complex trading tools. However, small differences can make or break each platform, depending on the investor. When comparing tastytrade vs. thinkorswim, this is what to consider to determine which one is right for you.

Investing on your own can be challenging, but professional help is available. Consider speaking with a financial advisor about your investing and retirement questions.

Overview of tastytrade vs. thinkorswim

There are certainly similarities when comparing tastytrade vs. thinkorswim, a Charles Schwab trading platform. For example, the two platforms share comparable pricing when trading stocks and exchange-traded funds (ETFs). However, both services have just enough variance in features to make each interface unique but equally complex. tastytade is a sophisticated investment platform that focuses its attention on highly active traders with a toolkit made for options trading. Meanwhile, the thinkorswim interface offers a wide range of investment choices, customization and news to help you personalize your experience.

Despite their features, both tastytrade and thinkorswim come with a steep learning curve so they may not be the best choice for beginners to investing.

tastytrade vs. thinkorswim: Fees

If you are using a trading platform like Zacks Trade or Fidelity, be sure to research the types of fees you will encounter. Common fees include:

Trading Fees. Trading fees are any fixed charge attached to each trade that you make. This is often a flat fee that is known as the spread. It applies when your broker charges you based on the difference between the buying and selling prices of an asset, if any exists.
Trading Commissions. Trading commissions are typically charged by your broker and represent a percentage based on the volume or value of each trade.
Inactivity Fees. Inactivity fees are charges your broker imposes for not trading regularly, such as when you keep money in a brokerage account.
Non-Trading/Other Fees. There may also be additional fees that apply to a specific platform. For example, a brokerage may charge you for making deposits or withdrawals into your brokerage account or for signing up for additional services.

Neither tastytrade nor thinkorswim charges you anything to trade stocks and ETFs. Additionally, there are no maintenance or inactivity fees when using either platform.

The two brokers are similar in their charges, although the exact costs differ a bit.

For example, both services charge for options and futures contracts. In particular, tastytrade was built with options traders in mind. There is a $1 commission per contract, but closing a position on options is free. A $10 commission cap applies per leg on equity options. In contrast, thinkorswim charges $0.65 for options per contract.

thinkorswim has other fees, too, including a $74.95 fee that applies to the purchase of non-Schwab Mutual Fund OneSource funds. A broker-assisted trading service is also available for $25. Margin interest rates begin at 10.75% compared to tastytrade’s 8% starting rate, although both can fluctuate, depending on your account balance.

tastytrade vs. thinkorswim: Services & Features

tastytrade offers several asset classes for trading, including stocks, ETFs, options, futures, options on futures, and crypto. However, options trading serves as the main emphasis so you will have to pursue a different brokerage for mutual funds, bonds and long-term investments.

Still, there are certain notable features that tastytrade offers. First, the interface allows multiple order types. You can easily enter multi-leg trades and either replace or cancel them. tastytrade has a Follow Feed, similar to social media platforms like Twitter, so you can view what your favorite traders are doing with their portfolios. You can also enjoy access to videos, articles and daily content on investment-related topics to grow their knowledge.

For its part, thinkorswim supplies in-depth details about its stocks, including the price and options chain. However, its analysis feature and investing resources are really what makes it shine. There may be a lot to work through, but investors can benefit from company updates, currency maps, Level 2 data (which tastytrade lacks) and other analytical add-ons.

thinkorswim also parallels tastytrade in its complex list of order types. The platform encourages customization throughout trading. If it feels overwhelming, you can test the program using its paper trading mode. With thinkorswim paperMoney, you can set up a simulated account and trade with fake money until you are comfortable with the system.

For full-service trading, opt for tastytrade’s The Works account. This individual margin account provides access to all available products, as well as options trading strategies and portfolio margin.

tastytrade vs. thinkorswim: Online & Mobile Experience

Regardless of whether you access thinkorswim using your desktop or the app, its platform is designed for experienced investors. Rather than encouraging pre-made portfolios, the platform emphasizes customization and self-education.

You may find that the desktop version offers a slightly cleaner layout. However, the mobile app provides the same analytics and market update tools to help you monitor your investments.

If you hit a snag, thinkorswim customers have the option to contact them through chat services or over the phone if needed. Schwab is one of the largest investment organizations in the U.S. and has the resources for a strong customer service network.

tastytrade offers its services through mobile app, desktop and browser systems. Features like curve analysis and the trader feed carry over into the app, ensuring no loss in functionality.

The service is dense like thinkorswim’s, though, and comes with little guidance, making it more challenging for those new to investing.

tastytrade vs. thinkorswim: Education and Research Resources

Both tastytrade and thinkorswim aim to equip investors with robust educational tools and research resources, although they approach this in slightly different ways. For investors who value education while they trade, these differences can help determine which platform better suits their needs.

tastytrade places a strong emphasis on investor education, particularly for active traders and those interested in options. The platform offers daily live shows, tutorials and market commentary produced by its own media team. These shows often feature professional traders walking through real trades, market analysis and risk management strategies.

tastytrade also hosts an extensive library of on-demand videos, blog articles and strategy guides that cater to both intermediate and advanced traders. Its Follow Feed even lets users watch what experienced traders are doing in real time, blending education with actionable insight.

thinkorswim, meanwhile, is backed by Schwab’s extensive educational resources and caters to a broader audience, covering the basics of investing while also appealing to seasoned traders.

One of its standout features is its paper trading simulator, which allows you to practice trading with virtual funds in a risk-free environment. In addition, thinkorswim offers research reports, market screeners, Level II quotes, real-time news feeds and customizable charts with advanced analytics. Educational resources include demos, webinars, in-person workshops at local branches and an online learning center covering everything from retirement planning to technical analysis.

Overall, tastytrade focuses on actionable, trader-specific education, backed by a strong media presence. However, thinkorswim provides a wider range of research tools and hands-on learning opportunities for traders at all skill levels.

If you prefer daily insights and a community-driven approach, tastytrade may be a better fit. If you want a more traditional education suite with simulation tools and professional-grade analytics, thinkorswim stands out.

Who Should Use tastytrade?

Overall, tastytrade is suited to highly active investors engaged in derivatives trading with a basic framework for high-volume and high-speed options trading. The lower costs compared to other services may be enticing to newer investors, but the service’s complicated layout may take awhile to learn. However, there are resources to help you learn how to use it effectively.

If you want to focus on IRA accounts, mutual funds or long-term assets in general, you may be better off looking elsewhere.

Who Should Use thinkorswim?

thinkorswim is a semi-professional system that even advanced traders may struggle to navigate. That means hobbyists and novices might find this platform more trouble than its worth. Overall, this is a trading platform best suited to active, hands-on investors with experience.

If you like thinkorswim but do not need all its features, Schwab’s standard web platform may be a suitable alternative.

Bottom Line

When comparing tastytrade vs. thinkorswim, both are viable options for experienced investors interested in options. They both support customization and promote investment education through their partner websites. However, thinkorswim provides more investment opportunities and tools to monitor the market, helping you better predict your next move. Pricing between the two remains comparable, however, so active investors should consider both options when choosing the best partner for their investment journey.

Consider finding a financial advisor who can help you make the decisions based on your long-term goals and risk tolerance.

Investing Tips

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