Thinkorswim by TD Ameritrade is an electronic trading platform by TD Ameritrade used to trade financial assets. It is geared for self-directed stock, options and futures traders. It was previously offered by ThinkorSwim Group, Inc., which was purchased by TD Ameritrade in 2009. TD Ameritrade provides services for self-directed option traders and institutional users who invest in equities, exchange-traded funds, futures, mutual funds and bonds. Thinkorswim provides financial literacy services for self-directed investors including trading tools and analytics. It offers a range of investor education products in a variety of interactive delivery formats, including instructor-led synchronous and asynchronous online courses, in-person workshops, one-on-one and one-to-many online coaching programs and telephone, live-chat and email support. Thinkorswim is used in conjunction with trades of equity securities, fixed income, index products, options, futures, other derivatives and foreign exchange. The Thinkorswim software is provided free for account holders of TD Ameritrade and trades via the TD Ameritrade platform are free.
History
Thinkorswim, Inc., was formed through multiple company mergers and acquisitions:
In 1982, Telescan, a provider of stock charting and screening tools, was founded by Dr. Richard Carlin in Houston, Texas.
In 1997, Online Investors Advantage, an investor education company, was founded.
In February 2007, Investools company completed the merger with Thinkorswim and its ticker symbol was changed to SWIM. In June 2008, the group adopted the name of its brokerage subsidiary, Thinkorswim, for its corporate identity, changing the listed holding company's name from Investools, Inc., to Thinkorswim Group Inc. At the time of the transaction, Thinkorswim had been a portfolio investment of Technology Crossover Ventures.
In May 2008, the company announced that it was cooperating with an informal U.S. Securities and Exchange Commission investigation into presentations used during sales meetings.
In January 2009, TD Ameritrade Holdings, Inc., acquired Thinkorswim Group, Inc., in a cash and stock deal valued around $606 million.
S.E.C. investigation & penalties
On December 10, 2009, the U.S. Securities and Exchange Commission began an investigation into Investools' use of misleading sales practices in which two named defendants, Michael J. Drew and Eben D. Miller, were giving trading workshops under the guise of being full-time investors by trade, having made their fortunes in this manner as well as assuring students they would achieve the same results by following the Investools method. Among the allegations by the S.E.C. "Investools Did Not Prevent its Speakers from Misleading Investors about a Survey of its Customers' Trading Success"
