Introduction

Are you looking for advanced software for futures and securities trading? If so, you really should check out tastytrade and thinkorswim.

Broker Fees

Services

Websites

tastytrade: Get $100 for signing up at Tastytrade with this referral link.

thinkorswim: Get thinkorswim platform and $0-fee trades at Charles Schwab.

Available Assets

Charles Schwab has created thinkorswim, which offers trading in the following asset classes:

- ETFs
- Closed-end funds
- Equities, including OTC stocks
- Options
- Forex
- Futures and futures options, including crypto futures

tastytrade hasn’t given a name to its software, which we’ll examine here shortly, but it does have some robust trading features. It can trade everything on thinkorswim’s list minus forex and over-the-counter stocks. tastytrade adds cryptocurrencies to the mix.

Winner: thinkorswim

Margin

Both thinkorswim and tastytrade can be used with cash, margin, or portfolio margin. thinkorswim requires $125,000 in assets to qualify for portfolio margin, while tastytrade requires $125,000 to activate portfolio margin and $100,000 to keep it active.

thinkorswim has stronger margin-analysis tools, although Charles Schwab customers can upgrade or downgrade a cash or margin account on the Charles Schwab website. tastytrade customers must apply and be approved for margin privileges.

But tastytrade has lower margin rates. They vary from 10.25% to 7.25%. Charles Schwab charges anywhere from 11.825% to 10.025%.

Winner: tastytrade

Websites

thinkorswim can be launched from the Charles Schwab site by hovering over the Trade tab in the top menu and clicking on the thinkorswim link in the drop-down window. On the next page, you’ll need to click on the green Launch button underneath the Web tab. This will generate a new tab within the browsing window with the thinkorswim web platform.

This one will be the simplest we will see. Charts, for example, have less than 100 technical studies, and there are only 7 drawing tools. Nevertheless, a graph can be displayed nearly full screen, and there are color-coded trade buttons at the top.





Speaking of trading, thinkorswim’s order ticket has some really nice features, including order rules that allow a trade to be submitted at a specific time in the future.

The tastytrade browser platform can be launched by clicking on the Trading Platform tab in the top menu. Like thinkorswim, its order ticket has some really useful features, including a table mode where multi-leg trades can be created.





But charting on the tastytrade web platform is very limited. A graph cannot be displayed full-screen, and there are only a few tools.

Winner: thinkorswim

Mobile Apps

On the tastytrade mobile app, it is possible to display a graph the full width of the mobile device in horizontal mode. However, there are still no tools.





This oversight is solved on the thinkorswim app. It has very powerful features, including twice the number of technical studies we saw on thinkorswim in web-browser version. The thinkorswim app has another really powerful trade ticket. We found several advanced orders, including:

- Blast all
- 1st triggers OCO
- Market on close





The tastytrade mobile platform has a good order form, although it’s not quite on the same level as thinkorswim’s trade ticket. The tastytrade ticket is the same one the website has with the addition of bracket orders.

tastytrade’s app streams live market news courtesy of tastylive, while the thinkorswim app has live CNBC.

Winner: thinkorswim

Desktop Programs

Now we come to where it really counts: desktop software. At both firms, the highest level of trading will be found here. The thinkorswim platform has a simulated mode, which really helps to learn the software. The tastytrade platform doesn’t incorporate this helpful feature.





But the tastytrade program does have pairs trading for simultaneous long and short trades. Other discrete tickets are available for multi-asset views and crypto trading. The tastytrade desktop platform also has good charting, making it the only tastytrade platform where advanced charting can be performed.





Although we do really like the charting tools on tastytrade’s desktop software, they are really no match for thinkorswim in desktop mode. During our test drive of the platform, we found over 400 technical studies and lots of graph styles, including Equivolume and Monkey Bars.

Winner: thinkorswim

Day/Swing Trading

Short Positions: Both broker-dealers permit shorting, although neither one has a short locate tool.

Level 2 Quotes: Available on thinkorswim; market-data rules and subscription requirements may apply.

Direct-Access Routing: Only available on thinkorswim (although not on the web-browser version).

Extended-hours Trading: thinkorswim and tastytrade both provide pre-market and after-hours trading sessions. Charles Schwab also offers 24/5 trading in more than 1,100 stocks and ETFs on thinkorswim. tastytrade offers 24-hour equities trading in select stocks and ETFs, and cryptocurrencies at tastytrade can be traded nearly around the clock.

Maker-Taker Fees: Not available through either broker here.

Winner: thinkorswim

Added Services

Banking Tools: thinkorswim users can sign up for free check writing and a Visa debit card through the Charles Schwab website. tastytrade offers no such services.

Initial Public Offerings: Available through Charles Schwab but not through tastytrade.

DRIP Service: Dividend reinvesting can be turned on inside a tastytrade or Charles Schwab account.

Fractional-share Trading: Charles Schwab offers it for most stocks and ETFs. tastytrade supports fractional-share trading with a small clearing fee per fractional-share transaction.

Individual Retirement Accounts: thinkorswim can be used with a wide variety of IRA versions, including SEP, SIMPLE, and Minor accounts. tastytrade only has the SEP account (plus the standard Roth and traditional accounts). Moreover, tastytrade charges a $60 fee to close an IRA. Charles Schwab does not, and it has much better IRA resources on its website.

Winner: thinkorswim/Charles Schwab

Recommendations

Beginners: thinkorswim is the harder platform to learn, at least in desktop version. The web-browser version of thinkorswim is pretty simple. Plus, it has a demo mode, which can be used with a practice currency. We suggest thinkorswim in a web browser.

Mutual Funds: Neither tastytrade nor thinkorswim offers trading in mutual funds. Charles Schwab’s website does, though.

Small Accounts: thinkorswim and tastytrade can be used with any amount. Because thinkorswim offers paper trading, it can be used with a $0 balance.

Frequent Stock Trading: thinkorswim offers the more advanced experience. Plus, it has better research tools (in desktop mode) than tastytrade’s platforms.

Long-Term Investors and Retirement Savers: thinkorswim can be used with an IRA, self-employed 401k, or other tax-advantaged account. Combined with multiple retirement tools on the Charles Schwab website, it would be a good choice.

thinkorswim vs tastytrade Summary

Although we do like tastytrade’s software, it doesn’t quite measure up to thinkorswim. tastytrade might be worth a go for crypto access or options and futures-focused trading, though.

Free thinkorswim Account

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Free tastytrade Account

Open tastytrade Account

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