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Overview of Paper Trading on Thinkorswim
Charles Schwab’s trading platform, thinkorswim, is one of the most popular places to practice trading. There are several versions to choose from, many tools, and you can access all of Charles Schwab’s assets. This makes thinkorswim a great place to learn and practice trading.
Can You Use Thinkorswim Without an Account?
You can use thinkorswim without having an account at Charles Schwab. But it’s simple and free to
open a Charles Schwab account, and you do not have to deposit any money to keep it.
Getting Started
It’s easy to start using thinkorswim’s paper trading service.
Charles Schwab offers one of the best paper trading platforms. They also allow anyone to try out their software, even if you don’t have a brokerage account.
To sign up for paper trading and download the software, you just
create a free Charles Schwab account.
Charles Schwab will collect some basic information from new users before letting them download the platform.
If you already have a brokerage account, you do not need to do anything extra—paper trading comes with every account.
To use the paper trading mode in thinkorswim, you simply select paper trading when you log in.
Thinkorswim Paper Trading Platforms
Since Charles Schwab’s paper trading is part of thinkorswim, you’ll need to download and install thinkorswim on your computer or phone.
After downloading, use the login information you created. You can also use your Charles Schwab login if you already have an account.
There are three versions of thinkorswim: a mobile app, a browser-based platform, and the main desktop platform.
Which version you use depends on what you want to practice. If you want advanced charting tools and all of Schwab’s services, use the desktop version.
Get Free Thinkorswim Platform
Get Thinkorswim platform and $0-fee trades at Charles Schwab.
Open Thinkorswim Account
TOS Paper Trading Cost and Fees
One big reason paper trading is popular on thinkorswim is that it’s free. You don’t have to pay to use the software or the paper trading service.
There are no minimum account requirements. There are also no membership fees.
Thinkorswim Demo Account Market Data
Live market data at Charles Schwab is always free. Thinkorswim gives you all the data you need to make decisions using the latest information. This is very useful for paper trading.
You also get NASDAQ Level II data included for free. You do not need extra subscriptions for things like Depth of Market or other advanced trading tools.
If you want Charles Schwab’s special market insight services, like Market Edge Daily, there is an extra charge. But these are not needed for paper trading.
Benefits of Paper Trading on Thinkorswim
There are many reasons to use thinkorswim’s paper trading. Some people use it to get used to the platform, some to practice live trading, and others to improve their trading skills.
Here are some ways thinkorswim’s paper trading can help you as an investor.
Strategy Testing (Backward and Forward)
To be successful at trading, you need to be consistent. Many say trading is about probabilities.
It’s important to know if a trading idea has a good chance to work. Paper trading is a safe way to test your ideas.
Thinkorswim has a built-in tool for backtesting, so you can see how your strategy would have done in the past.
Backtesting is a good start.
You also need to act on trading signals as they happen. Paper trading with thinkorswim helps you practice this.
Traded Many Asset Classes
Another benefit of thinkorswim’s paper trading is that you can trade all types of assets that Charles Schwab offers.
You are not limited to stocks. With thinkorswim, you can practice trading stocks, futures, Forex, commodities, and derivatives. You can even practice more advanced strategies like trading Forex pairs and futures spreads.
Practice Scalping on Thinkorswim
Some trading styles, like scalping, take a lot of practice.
If you don’t have experience, you can easily make mistakes and lose money. Whether you want to practice scalping stocks, ETFs, futures, or Forex, having a paper trading account is a great way to learn.
Research Tools
Thinkorswim also offers many education and research tools.
There is a full education section that covers topics like margin trading, position management, and understanding the markets.
You also get research tools such as analyst reports, sector comparisons, live news feeds, and tools for analyzing risk.
Screeners
Screeners are another helpful tool. You can search for trading ideas using specific rules. Then, you can test your ideas using paper trading.
Account Types
Thinkorswim paper trading lets you practice with different account types. You can set up standard brokerage or retirement accounts to see what types of trades are allowed for each.
Thinkorswim’s Paper Trading Pros and Cons
Thinkorswim has many good points for paper trading, but it’s important to know about the downsides too.
Pros
- Free platforms for practice
- Free live market data
- Many research tools
- Professional charting tools
- Tools to measure risk and reward
- Customizable screeners
- Full-featured mobile app
Cons
- The desktop software takes time to learn
- The position manager looks a bit old
- The browser version of thinkorswim can be slow
Get Free Thinkorswim Platform
Get Thinkorswim platform and $0-fee trades at Charles Schwab.
Open Thinkorswim Account
Updated on 7/30/2025.
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