Paper Trading on thinkorswim: a Comprehensive Review

Looking for a complete breakdown of Thinkorswim’s demo account and features?

In this guide, we’ll cover everything you need to know about the Thinkorswim paper trading simulator, including:

  • How to open a Thinkorswim demo account and get started
  • How to navigate the dashboard and use key features
  • How to place trades
  • Managing and analyzing positions
  • Overall impression and review

Thinkorswim is an excellent choice for traders wanting to practice strategies in a risk-free simulator while exploring advanced tools. We’ve even ranked it as one of the best paper trading platforms to practice with.

Disclaimer

Trading carries significant risks, including the potential loss of your initial capital or more. Most traders lose money, and trading is not a guaranteed path to wealth. Products like FOREX and CFDs are complex and involve leverage, which can magnify gains and losses. CFD trading is banned in many countries, including the United States.

Getting started with thinkorswim paper trading platform


Thinkorswim is a US-based electronic trading platform designed for self-directed investors.

Originally developed as a standalone platform, it became part of Charles Schwab through the Ameritrade acquisition. Today, Thinkorswim is available to Schwab customers and offers a range of tools for trading stocks, options, and futures. For more on Schwab’s offerings, check out our Charles Schwab review.

How to Sign Up for Thinkorswim’s Paper Trading Simulator:

  1. Go to Schwab’s Thinkorswim Guest Pass.
    (Note: Schwab customers already have access and don’t need to sign up.)
    Click “Sign up for a Guest Pass.”
  2. Complete the form – in this case, you’ll need a valid email address
  3. You’re ready to begin!

Noteworthy

This review will focus on thinkorswim’s web app, which doesn’t require installation (although it does offer a desktop download if you’re interested in additional software).

Navigating thinkorswim’s Paper Trading Dashboard

Once your Guest Pass with Thinkorswim is set up, you’ll have 30 days of access to the platform.

The paper trading simulator provides two account types—a margin account and an IRA account—each starting with $100,000 in virtual buying power, giving you the flexibility to practice different trading scenarios. For this review, we’ll focus on the stock trading features.

Thinkorswim’s dashboard is divided into four main sections:

Positions, Trade, Charts, and Scans, all accessible from the left-hand menu. Your account summary and open positions are always visible on the right, ensuring you can track your trades at a glance.

The Charts section is the go-to area for analyzing price movements. You can display up to three charts simultaneously and customize them using Studies—thinkorswim’s term for technical indicators like simple moving averages or Bollinger Bands. Annotating charts is straightforward with the Drawings menu, where you can add trendlines, Fibonacci retracements, or price levels. Additionally, the platform automatically overlays helpful markers like dividends, earnings announcements, and options expirations, giving you a complete picture of key trading events.

In the Trade section, you’ll find a wealth of information beyond the charts. This includes real-time news and detailed stock data such as market cap, earnings per share (EPS), and 50-day average volume.

The Scan section features Thinkorswim’s powerful stock screener. It offers over 60 filters, with 30 focused on fundamentals like return on equity (ROE), price-to-earnings ratio (P/E), and dividend yield. This makes it ideal for narrowing down opportunities that align with your specific criteria.

Executing Trades with thinkorswim’s Paper Trading Account


Thinkorswim makes placing trades straightforward, but there are a few key points to keep in mind.

Trading indicators added in the ‘Chart’ tab, like a Simple Moving Average (SMA), won’t appear in the ‘Trade’ tab. For example, if you set up an SMA on Nvidia’s chart in the ‘Chart’ tab, it won’t carry over when you switch to the ‘Trade’ tab to view news or market data. To maintain consistency, stick to one tab if you rely on specific chart setups.

How to Place an Order on thinkorswim

  1. Select either the ‘Chart’ or ‘Trade’ tab.
  2. Use the search bar to find the stock or market you want to trade.
  3. Once the chart loads, you’ll see the deal ticket at the top of the chart. Click ‘Buy’ or ‘Sell’ to open it. Alternatively, right-click on the chart to access options for buying, selling, or setting an alert.

The deal ticket allows you to customize your trade by adjusting the order type (limit, market, etc.), choosing the trade direction (buy or sell), or enabling advanced options like:

‘Blast All’ to submit up to eight independent orders simultaneously.

Contingent orders to trigger trades based on specific conditions.

OCO (One Cancels the Other) to manage risk by linking two orders.

Adjusting Orders Directly on the Chart

Thinkorswim makes it easy to adjust orders visually. After placing an order, you can grab the price bubble on the chart and drag it to your desired price level. For example, if you’ve set an order at $62 but decide to lower it to $61.80, simply drag the bubble to the new price, release, and confirm the adjustment.

This feature allows for quick and precise changes without needing to reopen the deal ticket, streamlining the trading process.

Monitoring and Analyzing Trades with thinkorswim

Thinkorswim provides powerful tools to help you stay on top of your trades and make informed decisions.

Setting Alerts

With Thinkorswim, setting custom alerts on your chart is quick and intuitive. For example, if you’re monitoring a stock, simply click on the chart at the desired price level to create an alert. This allows you to stay updated on critical price movements without constantly watching the screen.

All your alerts can be managed in the ‘Alerts’ section of the platform. Here, you can modify or remove alerts as needed, ensuring you never miss important market activity.

Reviewing Open Positions

The dashboard offers a comprehensive view of your trades, making it easy to track performance in real time. Key metrics displayed include:

  • Profit and Loss: See exactly how much you’re gaining or losing on each trade.
  • Cost Basis: Keep track of your entry price to guide your decisions.
  • Percentage Changes: Quickly measure how your positions are performing.

These insights are updated in real-time, helping you evaluate your trades and decide whether to hold, exit, or adjust your strategy.

Our take on thinkorswim demo account

Thinkorswim is a feature-packed platform that excels in research and analysis. With tools like a robust stock screener, detailed market data, and customizable charts, it’s particularly well-suited for long-term investors, swing traders, and position traders who rely on fundamentals and deeper market insights.

However, for day traders looking for quick entries and exits during the intraday, Thinkorswim might feel less intuitive. While features like Level 2 market data and direct chart trading are available, the platform’s overall workflow leans more toward thoughtful planning than rapid-fire execution. It’s a great choice for those who prioritize depth over speed.

Best ALTERNATIVE
ProRealTime Paper Trading Simulator

The ProRealTime demo account is free and offers unlimited access through its web version. Known for powerful charting and technical analysis tools, it’s trusted by over a million users worldwide.

Pros
100% free and unlimited demo account
Powerful technical analysis tools
Great charting experience
Cons
Steep learning curve

author
Maxime Parra

Maxime holds two master’s degrees from the SKEMA Business School and FFBC: a Master of Management and a Master of International Financial Analysis. As founder and editor-in-chief of NewTrading.fr, he writes daily about financial trading.

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