thinkorswim vs. E*Trade Introduction
If you want top trading software at low prices, you should look at E*Trade and thinkorswim from Charles Schwab. Our research will help you decide.
First, We’ll Look at Assets and Accounts
E*Trade lets you invest in many types of products, such as:
- Stocks
- OTC and penny stocks
- Bonds
- Mutual funds
- Exchange traded funds
- Closed end funds
- Futures contracts
- American Depository Receipts
- Real Estate Investment Trusts
On thinkorswim at Charles Schwab, you get almost the same choices, except that bonds and mutual funds must be traded on the Charles Schwab website. You can also trade forex on thinkorswim.
E*Trade offers managed portfolios through an automated service called Core Portfolios, which invests in low-cost ETFs for a 0.30% management fee.
thinkorswim is a self-directed platform and does not have any investment advisory service.
Both E*Trade and thinkorswim have a variety of account types for taxable and retirement investing, such as individual and joint accounts, education accounts, 401k plans for self-employed people, custodial accounts, and IRAs.
Overall, both are evenly matched in this category.
Second, It’s Customer Service
On the desktop version of thinkorswim, you’ll find a Support link in the upper-right. You can send a message to the thinkorswim help desk, which is open on weekdays.
Charles Schwab offers 24/7 phone support. There is also a messaging section on the website for less urgent matters or for sending documents.
Ted is Schwab’s virtual assistant and can answer some questions. If you need a human, just type “human” in Ted’s chat window.
E*Trade has an AI on its website, but it didn’t work as well as Ted during our test. Also, human agents aren’t always available.
E*Trade also has 24/7 phone support, but no secure messaging feature on the website.
thinkorswim users can visit any of Schwab’s 300+ branch locations. E*Trade only has a few open branches left.
Charles Schwab/thinkorswim is better for customer service.
Third, We’ll Inspect Web Trading
thinkorswim is available as a browser platform on the Schwab website. It has a few tools like watchlists, simulated trading, time & sales data, and a stock screener.
Charts in thinkorswim’s browser version have a few drawing tools and about 50 technical studies, which you can adjust. The order ticket supports many advanced order types. There’s also an Active Trader ticket that works like a price ladder. You can click on prices to enter orders or use big buttons to enter market orders quickly.
E*Trade’s browser trading platform is called Power. It has strong charting features and an advanced order ticket with many order and duration types.
Quick Trade is a vertical order form with large buttons for quick market orders, and there’s an auto send option to skip the confirmation.
Both platforms have practice (simulated) modes, which are very useful.
Since thinkorswim is simpler in web mode, E*Trade wins this round.
Fourth Is Mobile Apps
E*Trade’s Power app has powerful trading tools. It includes a multi-leg order ticket and conditional orders, like OCO and quote triggers.
Charting in Power starts simple but gets more advanced on the Chart tab, with technical studies, log scale, and different styles.
thinkorswim’s app offers even better charting with hundreds of technical studies. The trade ticket has many pro-level features, such as:
- Tax-lot options
- Advanced orders, like OCO and 1st triggers sequential
- Price slider toggle
- Conditional order submission
Both apps have simulated trading.
thinkorswim wins this round.
Fifth, E*Trade Pro vs Thinkorswim
E*Trade Pro is the desktop version of Power E*Trade. It continues the advanced features, such as:
- Multi-leg orders
- Time & sales
- Full-screen charts with many tools
- Margin calculator
- Profit/loss diagrams
- Account switching with a drop-down
- Live Bloomberg TV
thinkorswim desktop also focuses on high-level trading and streams CNBC video news. There are strong security screeners, advanced charting, and quick order buttons.
The plus sign icon in the bottom left brings up extra tools like a calculator.
thinkorswim wins this category.
Website Links
Thinkorswim: Get Thinkorswim platform and $0-fee trades at Charles Schwab.
E*Trade:
No commissions on stocks and ETFs.
Next Is Margin Trading
Both E*Trade and Charles Schwab offer margin accounts. You can use margin in IRAs at both.
E*Trade’s margin rates are 12.7% to 10.7%. thinkorswim’s rates are a little higher: 12.325% to 10.575%.
E*Trade wins for lower margin rates.
The Seventh Category Is Day Trading
Extended-hours Trading: Some ETFs can be traded 24 hours during the week at both thinkorswim and E*Trade. For most stocks and ETFs, both have pre-market and after-hours trading. Many futures trade 24/6.
Level II Quotes: Available at both brokers. E*Trade requires a $1,000 minimum.
Shorting: You can short at both. For HTB stocks, E*Trade requires signup.
Direct Access to Venues: Both allow it.
thinkorswim wins here.
Finally, It’s Additional Services
Initial Public Offerings: Both brokers offer IPOs.
Dividend Reinvestment Plan: Both offer DRIP service.
Banking Tools: Both have checks, debit cards, and FDIC insurance.
Fractional Shares: You can’t buy stocks or ETFs in whole dollars at either broker.
Individual Retirement Accounts: You can trade in IRAs on both platforms. Both have many IRA types. E*Trade charges $25 for early withdrawals (before age 59½).
Periodic Mutual Fund Investing: Both offer this feature.
Slight advantage to Charles Schwab and thinkorswim.
Recommendations
Beginning Investors: E*Trade’s robo account.
Mutual Fund Trading: Both are strong choices for mutual funds.
Small Accounts: Neither broker has fees or minimums for self-directed taxable accounts. Because E*Trade has some fees in other cases, we recommend thinkorswim/Charles Schwab.
Stock & ETF Trading: We recommend thinkorswim.
Retirement Planning & Long-Term Investing: Both have many tax-advantaged accounts and resources.
Website Links
Charles Schwab/Thinkorswim: Get Thinkorswim platform and $0-fee trades at Charles Schwab.
E*Trade:
No commissions on stocks and ETFs.
E*Trade vs Thinkorswim: Recommendation
thinkorswim from Charles Schwab is slightly better overall. E*Trade still does well and is the only one here offering investment management.
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Updated on 7/27/2025.