Investools

Investools provides investor education primarily in stock and currency markets through online courses, live workshops, trading tools, and coaching resources, based in Draper, Utah. The organization offers lifelong learning programs for self-directed individual investors to improve investment decisions, alongside additional non-core services such as investment research tools, advisory newsletters, customized marketing, and web hosting. With an estimated annual revenue varying from $1.1 million to $25.4 million and a workforce of 101-200 employees, Investools has historically graduated over 500,000 students. The company was formed in December 2001 through the merger of Telescan and ZiaSun Technologies, and was subsequently acquired by TD Ameritrade in June 2009 for over $600 million. Key contacts associated with the organization include Ray Kimbrell and Matt Kane.

Investools is a U.S. investor‑education company best known for running live and multimedia courses teaching a disciplined, rules‑based approach to stock and options investing; it later acquired thinkorswim and was itself acquired by TD Ameritrade in 2009. [3][1]

High‑Level Overview

• Concise summary: Investools built an integrated investor‑education business delivering live workshops, correspondence and web‑based courses that teach a repeatable investing method (the "Investools Method") for self‑directed retail investors; the company scaled through direct response marketing and partnerships and eventually merged with thinkorswim before being bought by TD Ameritrade/Charles Schwab via subsequent deals.[3][4][1]
• For an investment firm style view (applied to Investools as an operator):
• Mission: to “educate and empower individual investors to make their own financial decisions” through the Investools Method delivered live, by correspondence, or online.[3]
• Investment philosophy (translated to pedagogy): emphasis on a disciplined, rules‑based process, web tools and personalized instruction so learners can trade and manage positions themselves rather than rely on advisors.[3]
• Key sectors: retail investor education, online financial education platforms, direct‑to‑consumer financial services and trading tools integration via the later thinkorswim merger.[3][1]
• Impact on the startup/retail ecosystem: helped professionalize self‑directed retail trading education in the 2000s, demonstrated the scalability of DRTV/online marketing for fintech education, and its tie‑up with thinkorswim fed into brokerage product strategies that reached millions of retail accounts.[4][1]

Origin Story

• Founding and early evolution: Investools operated as a public company focused on investor education by the early 2000s and had built substantial course enrollment through live events, correspondence and online subscriptions (by the mid‑2000s it reported hundreds of thousands of course graduates and tens of thousands of website subscribers).[3][5]
• Key people and pivotal moments: the company aggressively used direct response TV and other direct marketing channels—an infomercial campaign in the mid‑2000s notably helped double revenue from roughly $100M to $250M in a year and drove stock appreciation, according to vendor case materials; in February 2007 Investools merged with options brokerage thinkorswim and in 2008 the combined group adopted the thinkorswim name; the group was acquired by TD Ameritrade in 2009 for roughly $600–750M depending on accounting of stock/cash consideration and later became part of Charles Schwab after TD Ameritrade’s 2020 acquisition.[4][1][2][3]

Core Differentiators

• Product/Instruction model: a structured "Investools Method" combining a disciplined investing process, web tools, and live/personalized instruction rather than purely passive courses.[3]
• Distribution and marketing: strong direct‑response marketing (infomercials, telesales, live events) that delivered rapid user acquisition and revenue growth in the 2000s.[4][3]
• Scale and reach: by mid‑2000s reported hundreds of thousands of graduates and substantial subscription customer bases, giving it a large retail education footprint.[3][5]
• Strategic pairing with trading tech: the 2007 merger with thinkorswim combined education with a sophisticated options trading platform, creating a complementary end‑to‑end proposition for active retail traders.[1][2]

Role in the Broader Tech/Finance Landscape

• Trend alignment: rode the 2000s trend of retail investors adopting online trading and self‑education, and the rise of integrated fintech experiences (education → platform) that empowers DIY trading.[3][1]
• Timing: consumer internet adoption, low‑cost trading and web tools made the Investools model scalable; its marketing model proved retail demand for structured, productized investing education.[4]
• Market forces working in their favor: growing retail participation in equity and options markets, improvements in trading platform UX (thinkorswim), and appetite for active self‑directed investing.[2][1]
• Influence: helped validate direct‑to‑consumer distribution for financial education and demonstrated value in bundling education with execution platforms, a pattern later seen across fintech offerings.[4][1]

Quick Take & Future Outlook

• What’s next (historical trajectory): Investools as an independent brand largely ended when the corporate group took the thinkorswim name and was acquired by TD Ameritrade in 2009; its legacy lives on in the integration of education and retail trading platforms at major brokerages (thinkorswim → TD Ameritrade → Charles Schwab).[1][2][3]
• Trends that would have shaped its journey: continued growth in retail trading, demand for on‑platform education, and regulatory scrutiny over investment education versus advice—each affects the viability and business model of companies like Investools.[3]
• How influence might evolve: the core idea—pairing actionable investor education with execution tools—remains influential and persists in modern fintechs that embed learning, coaching and community directly into trading platforms.[1][2][4]

Quick take: Investools demonstrated that scalable, marketed investor education can attract large retail audiences and that combining education with execution (through thinkorswim) creates strategic value for brokerages—its acquisition path reflects how education assets can be folded into platform strategies to acquire and engage active retail customers.[3][1][4]