Thinkorswim

Thinkorswim (often stylized and officially branded as thinkorswim, lacking capitalization) is an electronic trading platform used to trade financial assets. It is geared for self-directed stock, options and futures traders and is offered by Charles Schwab Corporation, a stockbroker.

Thinkorswim
Available inEnglish
TypeElectronic trading platform
Websitewww.schwab.com/learn/story/introduction-to-thinkorswim-desktop-platform

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 Richard Carlin in Houston, Texas.[1]
  • In 1997, Online Investors Advantage, an investor education company, was founded.[2]
  • In 1999, Thinkorswim, Inc., was founded as an online brokerage specializing in options by Tom Sosnoff and Scott Sheridan.[3]
  • In 2000, an international investor education company, ZiaSun, acquired Online Investors Advantage.[2]
  • On December 6, 2001, ZiaSun merged with Telescan to form Investools.[4][5]
  • In January 2005, Investools acquired Prophet Financial Systems, Inc., for $7.9 million in cash.[6] Prophet's founder, Tim Knight, was made the Senior Vice President of Technology. In May 2005, Investools common stock was listed on NASDAQ in May 2006.
  • In February 2007, Investools company completed a merger with Thinkorswim.[7] At the time of the transaction, Thinkorswim had been a portfolio investment of Technology Crossover Ventures.[8][9]
  • 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.[10]
  • In January 2009, TD Ameritrade Holdings, Inc. acquired Thinkorswim Group, Inc., (including its INVESTools division) in a cash and stock deal valued around $606 million.[11][12]
  • In October 2022, Charles Schwab Corporation acquired TD Ameritrade Holdings, Inc., along with Thinkorswim Trading Platform., in a deal valued at approximately $26 billion. The thinkorswim platform became available for Charles Schwab customers.[13]

S.E.C. investigation & penalties

On December 10, 2009, the U.S. Securities and Exchange Commission began an investigation into Investools' (purchased by thinkorswim) use of misleading sales practices in which two named defendants, Michael J. Drew ("Drew") and Eben D. Miller ("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.[14] Among the allegations by the S.E.C. was that "Investools Did Not Prevent its Speakers from Misleading Investors about a Survey of its Customers' Trading Success."[14]

References
  1. "Derek J. HOGGETT and Investa, Inc, Appellants, v. David L. BROWN, individually; David L. Brown, Trustee; Richard K. Carlin; Roger C. Wadsworth; W.K. Group Holdings; D.B. Technology, Inc., f/k/a, Max Ret, Inc., successor in interest to, D.B. Technology, Inc.; Scott Brown; AND Jeff Brown, Appellees".
  2. "ZIASUN TECHNOLOGIES, INC. FORM 10-Q for the quarter ended September 30, 2000". U.S. Securities and Exchange Commission.
  3. "Thinkorswim founders bring new online brokerage". Chicago Tribune. January 6, 2017.
  4. "ZiaSun, Telescan to merge, creating INVESTools Inc". Deseret News. May 4, 2001.
  5. "Telescan, ZiaSun to merge". American City Business Journals. May 3, 2001.
  6. "InvesTools Inc. acquires a software company". Deseret News. January 28, 2005.
  7. "Investools Inc. Completes Merger with thinkorswim Group Inc., Announces Upcoming Ticker Symbol Change to 'SWIM'" (Press release). marketscreener.com. February 15, 2007.
  8. "Technology Crossover Ventures: thinkorswim". Technology Crossover Ventures.
  9. "THINKORSWIM TO MERGE WITH INVESTOOLS". Archived from the original on October 11, 2011.
  10. Nair, Dinesh; Pilakkott, Vinu (May 1, 2008). "Investools says SEC conducts informal inquiry". Reuters.
  11. Ortega, Edgar (January 8, 2009). "TD Ameritrade Buys Thinkorswim to Expand in Options". Bloomberg News.
  12. "TD Ameritrade to buy thinkorswim for $606 million". Pittsburgh Post-Gazette. Associated Press. January 8, 2009.
  13. "What Will Happen to ThinkorSwim After Schwab Merger in 2023?". February 8, 2023.
  14. (United States District Court for the District of Columbia).Text
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