Vanguard vs. thinkorswim – A Detailed Comparison
Discover our detailed comparison of Vanguard and thinkorswim to help determine which is best for you. Whether you’re a seasoned trader or just starting out, choosing the right platform can significantly impact your trading experience.
To make your research easier, we manually found key data for Vanguard and thinkorswim across the internet and compiled it all in this article.
Overview of Vanguard
Vanguard was founded by the legendary investor John Bogle. Bogle is also credited with creating the first retail index fund, providing retail investors with a low-cost vehicle to invest in the broader stock market. Vanguard is known for offering low-cost mutual funds and ETFs with trillions of AUM.
✓ Best for investors
✓ Low-cost investing funds
✓ Retirement planning tools
Vanguard is Best For
Vanguard is best for long-term investors who want a low-cost set-it-and-forget-it investing approach. It is not great for active traders due to its lack of charting and trading tools. While Vanguard is an excellent and well-established brokerage, it is somewhat dated and not suitable for those who want a lot of control over their investments.
Overview of thinkorswim
thinkorswim was founded by Tom Sosnoff in the late 90s, and is one of the most popular trading platforms today. thinkorswim allows you to use advanced charting tools, custom indicators, screeners, trade options, and more! thinkorswim itself is not a brokerage, but is compatible with Schwab and TD Ameritrade customers.
✓ Customizable charting tools
✓ Paper trading features
✓ Free for Schwab accounts
thinkorswim is Best For
thinkorswim is best for traders who already use Schwab or TD Ameritrade, and want an excellent trading platform for technical analysis, options trading, news, and more!
Key Characteristics of Vanguard and thinkorswim
| Platform | Platform Type | Tradeable Assets | Charting Features | Data | Premium Pricing |
|---|---|---|---|---|---|
| Vanguard | Brokerage Platform | Stocks, ETFs, Mutual Funds, Options, Bonds | Price history for Vanguard funds | Real-time data with funded account | No premium features |
| thinkorswim | Trading Platform (Schwab) | Stocks, ETFs, Mutual Funds, Options, Index Options, Futures, Futures Options, Bonds | Downloadable desktop platform and web app | Real-time data with funded account | No premium features |
Trading Features and Tools
| Platform | DRIP | Margin Trading | Insurance | Mobile App |
|---|---|---|---|---|
| Vanguard | Yes, no fees | Yes | SIPC Insured | Yes |
| thinkorswim | Yes, no fees | Yes | Not a broker | Yes |
Trading Costs and Commissions Compared
| Fee Type | Vanguard | thinkorswim |
|---|---|---|
| Equity Commission | Free | Free |
| Option Commission | $0 + $1-per-contract fee | $0.65 per contract |
| Futures Commission | No futures | $2.25 per contract |
| Futures Options Commission | No futures options | $2.25 per contract |
| Option Exercise Fee | None | None |
Vanguard vs thinkorswim – Bottom Line
Choosing between Vanguard and thinkorswim depends on your specific trading needs, preferred trading tools, and the type of assets you’re interested in.
Both platforms offer distinct advantages, but by considering the detailed comparison above, you can select the one that aligns best with your trading strategy and goals.
For more detailed reviews and comparisons, continue exploring our other articles on brokerage platform comparisons.
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- TradingView has an excellent economic calendar and various screeners
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