A fluid coupling is a two element drive that is incapable of multiplying torque, while a torque converter has at least one extra element—the stator—which alters the drive's characteristics during periods of high slippage, producing an increase in output torque.

In a torque converter there are at least three rotating elements: the pump, which is mechanically driven by the prime mover; the turbine, which drives the load; and the stator, which is interposed between the pump and turbine so that it can alter oil flow returning from the turbine to the pump. The classic torque converter design dictates that the stator be prevented from rotating under any condition, hence the term stator. In practice, however, the stator is mounted on an overrunning clutch, which prevents the stator from counter-rotating the prime mover but allows for forward rotation.

Modifications to the basic three element design have been periodically incorporated, especially in applications where higher than normal torque mutiplication is required. Most commonly, these have taken the form of multiple turbines and stators, each set being designed to produce differing amounts of torque multiplication. For example, the Buick Dynaflow automatic transmission was a non-shifting design and, under normal conditions, relied solely upon the converter to multiply torque. The Dynaflow used a five element converter to produce the wide range of torque multiplication needed to propel a heavy vehicle.

Although not strictly a part of classic torque converter design, many automotive converters include a lock-up clutch to improve cruising power transmission efficiency. The application of the clutch locks the turbine to the pump, causing all power transmission to be mechanical, thus eliminating losses associated with fluid drive.