In a significant move, Charles Schwab has broadened its trading services by integrating futures and forex trading into its thinkorswim platform suite.
This introduction marks Schwab’s debut in offering forex trading capabilities and is a strategic step towards consolidating the services previously provided through Ameritrade’s thinkorswim.
The newly added features encompass portfolio margining, allowing eligible traders to utilize a risk-based margin system, thereby reducing the required capital compared to conventional methods. This enhancement is poised to attract traders seeking advanced risk management tools and leverage options.
Under Schwab Trading Powered by Ameritrade, Schwab has introduced over 65 tradable currency pairs since October 2023, alongside futures trading, which was previously exclusive to its StreetSmart platforms. These platforms now boast real-time charting, pre-defined watchlists, comprehensive research resources, and access to dedicated futures and forex specialists.
Schwab highlighted that venturing into global markets through forex trading equips customers with opportunities to hedge against international currency and interest rate risks, as well as geopolitical events. It also enables portfolio diversification by enabling trading in markets that remain active beyond standard stock market hours.
The rollout aligns with Schwab’s ongoing efforts to integrate Ameritrade’s capabilities into its own offerings, aiming to provide a unified trading experience to all clients. The full integration is slated for completion by May, with all Ameritrade clients transitioning to the Schwab platform. To facilitate this transition, Schwab offers a paperMoney® simulated trading environment, aiding new traders in familiarizing themselves with the tools and strategies pertinent to these markets.
James Kostulias, Managing Director and Head of Trading Services at Charles Schwab, remarked, “This rollout also represents our focus throughout the integration of Schwab and Ameritrade to deliver the best of what both firms provide to clients.” He emphasized that Schwab clients have already embraced thinkorswim since its availability last fall, and with the inclusion of futures and forex trading, alongside portfolio margin, the platform is well-positioned to welcome the final group of Ameritrade clients in May.
Read more: Real-time Forex News and the latest trading updates
TD Ameritrade’s thinkorswim Platform
In 2021, Charles Schwab announced plans to retain and integrate Ameritrade’s thinkorswim and thinkpipes trading platforms. The integration between the two leading publicly traded discount brokers was expected to take up to three years following the Ameritrade takeover.
The merger creates a dominant force in online brokerage, boasting nearly $7 trillion in client assets and over 30 million brokerage accounts. The integration process extends to educational offerings, tools, and TD Ameritrade’s institutional portfolio rebalancing solution, iRebal®.
