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ThinkorSwim Trading Platform Review

If you trade US Options, ThinkorSwim Offers a Superior Platform

SPECIAL NOTE:- Until recently, the ThinkorSwim trading platform and brokerage facility was unavailable in some countries such as Australia. But now, it can be accessed another way. See the bottom of this article for details.

The one thing I like most about ThinkorSwim is its spectacular trading platform. So far, I haven't seen anything like it with any other broker. Its best feature for options traders is the 'Analysis' tab. It's also the broker used for some courses that I recommend.

The platform allows you to immediately see a dynamic risk graph, which shows you exactly how any options trade setup will look. But more than that, it will also immediately show you the new risk graph for any proposed adjustments to existing trades that you might like to make.

This is the sort of stuff that normally comes with proprietary software costing thousands of dollars. Flexible risk graphs that immediately change with every variation you choose to add or subtract from a position are one big plus for this options broker. You can also select a beta-weighted risk graph of your entire portfolio for any given time.

Not only that, but the trading platform comes with an advanced charting and technical analysis package. If you're an options trader and into "the option Greeks" you can monitor your individual positions as well as your entire portfolio from the perspective of delta, gamma, theta, and vega.

Backtesting and Scanning for Strategies

The ThinkorSwim platform also includes the "ThinkBack" feature, which allows you to access historical options prices and backtest strategies. You can also do a probability analysis for any proposed or existing trades - for example, the likelihood of a range trading based position reaching one of your breakeven points.

Or, if you want to scan the markets for the right setups for other strategies, such as covered calls or straddles, you can use the scan feature along with the MarketWatch facility to access critical information, such as upcoming earnings reports and the like.

Here's an example of how the trading platform looks and the brilliant risk graph analysis feature that comes included:

Thinkorswim Trading Platform - User-Friendly Interface

Trades are easy to execute and you can line them up in an "Order Book" and analyze them before sending them to the market. Even the 'confirm and send' screen gives you a quick snapshot of the risks and potential profits, plus brokerage fees in your proposed trade.

The ThinkorSwim Trading Platform has recently been acquired by TD Ameritrade and has been highly rated by Barrons as one of the top online brokers. Opening an account with them is easy (I've done it myself), and most of it can be completed online.

Shortly afterwards, they will ask you to mail, fax or email their forms to them, as well as proof of identity. If you have access to a scanner, you can easily scan these documents as .pdf files and email to them.

ThinkorSwim Trading Platform - Brokerage Fee Options

Because ThinkorSwim are geared to frequent traders their brokerage fees are structured in a way that becomes a little more expensive for traders with smaller budgets or a more passive trading style but to me, their cutting edge trading technology is worth it.

Still, they aim to be competitive and even offer to mimic the rates of an existing list of other top brokers. You have the option to choose one of these in your account setup as an alternative to their advertised rates.

From what I've seen I cannot recommend this broker highly enough. The suite of facilities that they offer is just brilliant. The only downside is that they require a minimum $US2,000 to fund an account. You can still open one without the funds today though and start saving till you have the required amount.

In the meantime, you have access to their paper trading platform which gives you a "pretend" $100k to play with and test your strategies on actual live prices in real time.

The above video is taken from the very popular Trading Pro System series of options trading videos. This options income training system is very in-depth and teaches you how to consistently profit from options.

The later modules include some advanced strategies for building long-term wealth. The system advocates using ThinkorSwim because of its advanced analysis features.

On a final note, there are some countries, such as Australia, where you can no longer open a ThinkorSwim account. However, if you sign up with Charles Schwab International, then this usually won't be a problem.

Visit ThinkorSwim or Charles Schwab International to open an account.

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