thinkorswim paper trading is free. Charles Schwab calls its simulator paperMoney, and Schwab clients can use it at no extra cost through thinkorswim desktop, web, or mobile. PaperMoney uses virtual funds, so you can practise trading without risking real money.
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thinkorswim Paper Trading at a Glance
| Feature | Details |
|---|---|
| Cost | Free for Schwab clients |
| Simulator | thinkorswim paperMoney |
| Virtual buying power | $100,000 |
| Products available | Stocks, options, futures and forex, subject to platform availability |
| Real money required to practise? | No |
| Schwab account required? | Yes, for ongoing paperMoney access |
| Alternative without a Schwab account | 30-day thinkorswim Guest Pass |
Schwab says paperMoney is built into the thinkorswim platform suite and provides $100,000 in virtual buying power for simulated trading.
Do You Need a Schwab Account to Use paperMoney?
A Schwab brokerage account is required for regular, ongoing access to thinkorswim paperMoney. Schwab clients can log in to thinkorswim and switch between live trading and simulated trading.
If you do not have a Schwab account, you can use the thinkorswim Guest Pass. It provides access to the simulated environment for 30 days. The Guest Pass credentials expire after that period.
What Can You Practise With thinkorswim paperMoney?
You can practise several trading activities with thinkorswim paperMoney, including:
- Buying and selling stocks
- Trading options
- Testing futures strategies
- Simulating forex trades
- Using charts, watchlists and technical studies
- Reviewing simulated profit and loss
- Testing different order types and trading workflows
Schwab describes paperMoney as a live-market simulation with virtual buying power. Its educational materials also warn that simulated orders, transaction costs, market activity and execution may differ from live trading.
Is the thinkorswim Platform Itself Free?
Schwab clients can use the thinkorswim platform suite without paying a platform subscription fee. Live trades may still be subject to Schwab's standard pricing, fees and regulatory charges. PaperMoney trades use simulated funds, so they do not create real investment gains or losses.
Limits of Free Paper Trading
PaperMoney is useful for learning the platform and testing trading ideas, but simulated trading does not reproduce every part of live trading.
- Simulated profits cannot be withdrawn. PaperMoney gains and losses have no cash value.
- Execution can differ from live trading. Fill prices, liquidity, slippage and order handling may not match real-market results.
- The financial pressure is different. A simulated $10,000 loss does not create the same emotional or financial consequences as losing real money.
- Margin features may differ. Schwab notes that paperMoney may not reflect every intraday margin feature or the buying power available in a live account.
Bottom Line
PaperMoney is a practical way to learn thinkorswim, test order workflows and practise strategies without putting cash at risk. Treat the results as training data, not evidence that a strategy will make money in a live account.