When I receive emails promoting a product, I typically hit the delete button assuming that it's SPAM. This time though, the product was for a new discount brokerage offered in Canada, so I had to take a peak. Note that this is NOT a sponsored post and MDJ is not affiliated with Think or Swim in any way.
When I first heard of Think or Swim, I thought it was a book title. Do the words "Think or Swim" conjure up images of a discount brokerage to you?
This article will provide a preliminary view of the discount brokerage Think or Swim Canada. As I don't have an account with them, I can only go by what it stated on their website. I would be grateful if there are any users of Think or Swim to add their comments.
- thinkDesktop – a software based trading platform, I assume that it's the same idea as Interactive Brokers.
- webBasedTrading – their web based trading platform.
- thinkAnywhere – smartphone/pocketpc based trading platform.
- thinkMobile – regular cell phone trading for phones with mini browser capabilities.
Commissions/Fees for Trading Stocks (USD)
- $0.015/share ($5 min) or
- $9.95 / trade (5000 shares max).
- No Additional fees for calling trading desk to make trade.
Commissions/Fees for Trading Options (USD)
- $1.50 / contract with min of $7.50 / trade.
- All live data is free.
- Only USD is accepted with their accounts (What are they thinking? How can they open a Canadian version of their brokerage without letting Canadians hold their local currency?)
- Ability to call trading desk to make trades at no extra charge.
- The additional options in trading platforms. Although I wouldn't trade over my mobile browser, it is a nice option to have.
- Low commissions.
- Cannot hold Canadian currency within a Think or Swim Account.
- No RRSP's.
- No Canadian office. All paperwork/cheques need to be shipped to their head office in Chicago.
- No mutual funds.
As of right now, I don't think that Think or Swim is a particularly good choice as a Canadian discount brokerage. If you compare them with other discount brokerages that I've reviewed, you'll see that they are lacking in a couple key areas. The biggest being that the investor cannot hold Canadian cash within the account.If you would like to read more articles like this, you can sign up for my free newsletter service below (we will not spam you).