thinkorswim vs. E*Trade

Investing is an ever-changing world. Online brokers are constantly looking for ways to improve the investment process for novices and experts alike. Both Schwab’s service, thinkorswim, and E*TRADE offer advanced trading software for active investors. While the two manage similar data, interfaces and overall power, there are differences between them. Even subtle changes in features can drastically shift a user’s experience, so it’s important to know how they compare.

A financial advisor can answer your questions about investing and help you develop a strategy that meets your budget and long-term goals.

Overview of thinkorswim vs. E*TRADE

In a general overview, it might be easier to say what the two services share in common. Thinkorswim is a full-featured investment platform owned by Charles Schwab. Thinkorswim and E*TRADE, another brokerage with a day trading app, are powerhouses in the online financial investment field. They both come equipped with an array of tools, like charting, that help you monitor the market and stay informed. On top of that, both are part of the newer wave of online brokers that have free commission trading. Other similarities include options and broker assistance.

That’s not to say that the two platforms don’t have features that separate them from each other. Not all their costs match up and you’ll also find that only thinkorswim has foreign currency trading (forex). In contrast, E*TRADE is better at futures contracts.

thinkorswim vs. E*TRADE: Fees

If you are interested in using a trading platform, it’s important to look out for the four types of fees you’ll typically run into.

Trading fees: Any fixed charge attached to each trade that you make. This can come in the form of a flat fee or what’s known as the “spread.” This is when your broker charges you based on the difference, if any, between the buying and the selling price of an asset.
Trading commissions: This is when a broker will charge you a percentage based on the volume or value of each trade.
Inactivity fees: Any fees that the broker charges you for not trading, such as for keeping money in a brokerage account.
Non-trading/Other fees: Any form of fee for trading on this platform not covered above. For example, a brokerage might charge you for making deposits into your brokerage account, taking money out of it or signing up for additional services.

E*TRADE does not charge trading or commission fees for stocks, mutual funds and ETFs, which is relatively common among electronic brokers. This is similar to thinkorswim’s system, since it has also eliminated trading fees as well as inactivity fees and annual fees. The likenesses continue with their $25 broker-assisted trades and options contracts’ costs. Both platforms charge $0.65 per options contract, a relatively industry-standard price, although E*TRADE lowers that to $0.50 for high-volume traders.

Another comparable cost is margin interest rates. Thinkorswim’s rate ranges from 12.575% to 10.825%, while they range from 13.20% to 11.20% at E*Trade. In terms of futures contracts, there is a slight increase on thinkorswim’s side at $2.25 compared to E*TRADE’s $1.50. That difference continues with their respective mutual fund commission prices: E*TRADE charges $0 for no-load funds; thinkorswim charges up to $74.95 for buys.

thinkorswim vs. E*TRADE: Services & Features

Both services offer comprehensive investment brokerage experiences and tools. They each encourage portfolio customization and financial education through their online interfaces as well as their mobile applications. Along with that, their low to minimal costs to use those education services aim to improve financial and investment literacy among a wider group of people.

Thinkorswim does prioritize sophisticated investors more than E*TRADE, which is evident from its dense electronic system. However, it keeps the door open to new traders by hosting its high-quality investment tools for everyone. With E*TRADE, you can customize the stock screener according to price and volume, fundamental metrics, and other criteria. The Power E*TRADE platform also includes advanced charting features and a live action scanner to scan the market in real-time.

Thinkorswim comes with its own traits through its desktop, web browser, or mobile apps. The desktop prioritizes the most range of data options and customizability, though they all insist on these two traits as their core foundation. Add-ons include news, analysis and Level 2 data.

One of thinkorswim’s most useful features is its full paper trading mode. Essentially, the service allows you to set up a fake or simulated account that comes with a minimum amount of fake money. It gives new users the opportunity to familiarize themselves with the program before they have to take any real risks.

Also remember that thinkorswim offers forex investing whereas E*TRADE does not.

thinkorswim vs. E*TRADE: Online & Mobile Experience

Both companies offer web and mobile options for investing and researching. E*TRADE offers two mobile apps: the E*TRADE Mobile App and the Power E*TRADE app. The former is designed to simplify investing and trading, whereas the latter is meant to provide more in-depth information.

E*TRADE’s mobile app investment options are appealing to the knowledgeable investor, with access to thousands of stocks, futures, bonds and more. Staying informed is also made easy through the app’s news and market analysis sections sourced from CNBC, MarketWatch and Morningstar.

The online brokerage also has a number of contact options for its userbase to access customer service, including e-mail, a telephone number and online chat. There is also a FAQ. That accessibility can improve the E*TRADE user’s experience a great deal, in comparison to many other brokerage options.

Thinkorswim’s overall target audience is experienced investors, so the system is a little denser than some other options you might find. That comes with more tools at your disposal, though. You have profit and risk analysis at your fingertips, multi-touch charts, live news and insights, and a support system as well.

Using thinkorswim’s support services, you have access to immediate help when you chat with specialists in real-time or visit chat rooms with fellow investors.

thinkorswim vs. E*TRADE: Account Types and Minimums

Both thinkorswim (by Charles Schwab) and E*TRADE both offer a wide range of account types, making them accessible to investors at nearly every stage of life and with varying financial goals.

thinkorswim supports standard individual and joint taxable accounts, retirement accounts like Traditional, Roth and Rollover IRAs, custodial accounts for minors, and specialized accounts such as trusts and 529 college savings plans. One of the biggest advantages of Schwab is that there is no minimum deposit requirement to open a brokerage account, which makes it easy for beginners to get started without committing a large sum of money.

E*TRADE also provides individual and joint brokerage accounts, retirement accounts (Traditional, Roth, SEP, SIMPLE and Rollover IRAs), custodial accounts, and small-business retirement options like Solo 401(k)s. Like Schwab, E*TRADE has no minimum deposit for brokerage accounts, though certain managed portfolios and premium services may require higher balances (for example, $500 for its Core Portfolios robo-advisor).

For new investors, this low barrier to entry is important. It means you can start small, build confidence with trading tools and research, and scale your account over time without worrying about an upfront hurdle. For more experienced traders, the availability of specialized account structures ensures that both platforms can accommodate advanced tax, business, and estate-planning needs.

Who Should Use thinkorswim?

Thinkorswim can work well for the advanced investor who wants an active, hands-on experience. The large amount of data the platform offers makes thinkorswim a near semi-professional interface, but that comes with a cost. Newer, passive, or low-risk investors might find that the system is not suited to them.

Certain individuals might like thinkorswim’s overall functions but need something a little less complicated.

Who Should Use E*TRADE?

E*TRADE comes with a learning curve of its own, but the tools it offers are worth the time they take to understand. Their complexity makes them well-suited to experienced investors since that clientele is more likely to pursue complicated investment portfolios. In particular, the futures contracts might appeal to those looking for a sophisticated portfolio. Novice investors might not find the service too user-friendly. However, that’s not to say the platform’s tools aren’t worth learning. They might just require some patience.

Bottom Line

E*TRADE and thinkorswim are strong contenders for anyone looking for the right digital brokerage. However, E*TRADE’s interface is more forgiving for the beginner investor and might have a cost advantage. On the other hand, thinkorswim is a great platform for the investor interested in options and forex. Finding the trading platform that’s right for you takes research and time, but both E*TRADE and thinkorswim are both top-notch choices for active investors.

Investing Tips

If you’re not sure which trading platform to use consider working with a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now, get started now.
Neither E*TRADE nor thinkorswim can forecast future results, but there’s a tool that can give you a decent idea of how your portfolio will do, based on how much you invest and your time horizon. It’s an investment calculator, and it is free to use.