Charles Schwab today announced the launch of futures and forex trading, as well as portfolio margin, on the thinkorswim suite of platforms, part of Schwab’s comprehensive trading offering, Schwab Trading Powered by Ameritrade.
The introduction of these advanced capabilities is the first time Schwab has enabled FX trading and, in addition to strengthening Schwab’s leadership in derivatives trading, marks a significant step in integrating the full range of trading capabilities previously available through thinkorswim at Ameritrade.
In October 2023, Schwab introduced Schwab Trading Powered by Ameritrade, a redesigned trading experience made possible by the combination of two of the industry’s most innovative companies, Charles Schwab and Ameritrade. Schwab Trading Powered by Ameritrade unites thinkorswim trading platforms with Schwab’s trading capabilities on Schwab.com and Schwab Mobile, along with extensive trading training and specialized services designed for traders of all types and skill levels to create an exceptional trading experience .
“The introduction of these latest capabilities reinforces our commitment to deliver a powerful, innovative and sophisticated trading experience through Schwab Trading Powered by Ameritrade,” said James Kostulias, CEO and Head of Trading Services at Charles Schwab. “The addition of these capabilities builds on an already strong offering for traders – and in particular, derivatives investors – that includes the thinkorswim platforms, Schwab’s trading capabilities on Schwab.com and Schwab Mobile, 24-hour trading five days a week , sophisticated tools and support for options traders, extensive educational trading content and specialized services designed for traders of all types and levels of expertise.”
In addition to forex trading, Schwab now offers futures trading on thinkorswim platforms. Previously only available through the StreetSmart platforms, futures contracts allow skilled traders to buy or sell a specific commodity asset or index at a specified future date for a specified price.
On Schwab’s thinkorswim platforms, approved futures clients have access to:
- Real-time futures charts
- Predefined futures watchlists and technical indicators
- In-depth research and commentary, all within thinkorswim
- Access to futures experts for clients seeking support
- Greater access to global markets with Forex
The introduction of foreign exchange trading at Schwab offers a new opportunity for investors to hedge the risks associated with international currencies and interest rates, potential geopolitical events and to diversify their portfolio and respond to changes even when the stock market is closed.
Today, Schwab offers more than 65 tradable currency pairs on thinkorswim. To help with these trades, Schwab offers expert forex support 24 hours a day, five days a week. Expert forex tools and training are also integrated directly into thinkorswim trading platforms and forex trading is offered commission-free, with trading costs reflected in the bid/ask spread.
Also now available through Schwab’s thinkorswim platform is Portfolio Margin, an alternative calculation based on the risk margin requirements of an entire portfolio rather than the sum of individual positions and strategies. For clients who qualify, Portfolio Margin often results in lower margin requirements and increased leverage. Schwab’s highly competitive, tiered interest rates mean that the more a customer borrows, the lower the margin lending rate can be.
“This disposition also represents our focus throughout the integration of Schwab and Ameritrade to bring the best of what both companies provide to clients,” Kostoulias said. “Schwab clients have already been deeply engaged with thinkorswim since it became available to them last fall, and with futures and forex trading along with portfolio margin now available on the platforms, we are ideally placed to welcome last group of Ameritrade clients at Schwab in May. .”