Thinkorswim for Scalping
If you want to scalp stocks and are not sure which broker to use, you may want to look at Charles Schwab’s Thinkorswim trading platform. Thinkorswim is well known for its many tools and features, and many of them are designed for active traders.
Whether you need up-to-date market data and news, fast order execution, depth of market, advanced charting, hotkey support, or scanning technology, Thinkorswim has tools to help you scalp stocks.
Thinkorswim Platforms for Scalping
Charles Schwab is a full-service broker with many services for its clients. The broker offers several trading platforms to choose from. For scalping stocks, each platform has its own pros and cons, but thinkorswim (TOS) is the most capable of them all.
At Charles Schwab, you can use the web platform, desktop trading software, thinkorswim web, or the mobile app to trade.
The desktop trading software has everything you need for scalping. It has built-in scanners, excellent charts, an active trader interface, a newsfeed, and more. Whether you want to scalp penny stocks, ETFs, FANG stocks, or any other liquid security, TOS helps you trade quickly.
The web platform is good for basic order entry. It is the main interface and includes your account info, research, tools, and education. You can also open accounts and manage security settings there. For scalping, the web platform is missing some important features.
Thinkorswim Web is a newer platform but may not be best for scalping. It can be used for active order entry but is slower than the desktop version and has fewer tools.
The Mobile App is good for trading on the go. Charting works well for a mobile app, you have advanced order entry, and making watchlists is easy.
Depending on your scalping style, the mobile app may or may not be right for you. There are no instant trade entry options, and moving from chart to order entry takes time, which can affect your trade prices. There is also no built-in scanner in the mobile app.
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Thinkorswim Tools for Scalping
To decide if Thinkorswim is the right choice for you, consider the available tools. Depending on how you scalp, you might prefer some tools over others.
Most features used by day traders and scalpers are available on TOS, which is why many active traders like it.
Let’s look at some key TOS features for scalping stocks.
- Hotkey Support
- Charting
- Custom Scans
- Direct Routing
- Level 2 Data
- Heatmap
- Newsfeed
- Indicator Support
Account Types for Scalping
Scalping means entering and exiting trades frequently. There are some important rules to know. The two main ones are the PDT (pattern day trader) rule and the GFV (good faith violation) rule. The PDT rule affects margin accounts; the GFV rule affects cash accounts.
The pattern day trader rule says you cannot make more than three day trades in a rolling five-day period unless you have at least $25,000 in your trading account.
The GFV rule means you cannot sell stocks you just bought until the money used to buy them has settled. Settlement usually takes about 2 days after a trade.
If you want to scalp stocks all day, you should plan around these rules.
If you open a margin account with Schwab and keep over $25,000 in it, you do not have to worry about the PDT rule. If your balance is below $25,000, you will need to look for other ways to trade. You might trade options, trade micro futures, or use multiple accounts.
To avoid the GFV rule, do not trade with unsettled funds. Many traders split up their cash to match the settlement period and how often they want to trade.
Fees and Commissions
Thinkorswim’s fee schedule is good for scalpers and high-frequency traders. The broker
does not charge a commission on stock transactions, and regulatory fees are very low.
Traders pay regulatory fees ($0.000166 per share), but these are small for most scalpers.
Market data for Nasdaq, OPRA, AMEX, and NYSE (Level I and II) is free for investors.
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Pros and Cons of Scalping Stocks at Thinkorswim
There are many things to like about Thinkorswim for scalping stocks, but there are also a few downsides.
Pros
- Desktop software has many helpful tools
- Charting is excellent
- Low-cost trading
- Direct order routing available
- Free market depth from major exchanges
- Multiple ways to enter orders and hotkey support
Cons
- Other platforms are not ideal for scalping
- Trading platform can be complex to learn
Scalping Stocks on Thinkorswim Summary
Overall, Thinkorswim gives investors a strong scalping experience with lots of tools and features. It is not ideal to scalp on the web or mobile versions, but the main Thinkorswim software has everything an active trader needs to profit from price changes during the day. The direct order routing, hotkey support, active trader window, screeners, and customizable charts make Schwab and Thinkorswim good choices for scalpers.
Updated on 8/3/2025.
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