Tradestation: Best Broker for Scalping
If you’re searching for a brokerage with solid scalping tools, TradeStation is worth considering. We’ve gathered all the information you need.
Fees and Minimums on Scalping at TradeStation
Scalping is a fast-paced form of day trading involving multiple trades throughout the day to earn small profits. Even though it requires many transactions, TradeStation supports scalpers with $0 commissions on most stock trades.
For trades over 10,000 shares, there’s a half-cent fee per extra share. Another half-cent per share is added to directly-routed trades. International stocks have different fees depending on the exchange.
Options and futures come with per-contract fees. Options cost 60¢ per contract, while futures are $1.50 each, though TradeStation offers a 50% lifetime discount on futures commissions.
Crypto trade fees vary by account type (taxable or IRA) and trade volume. The highest charge is $2 plus 0.60%.
TradeStation’s taxable accounts have no monthly fees or minimums, but there’s a yearly inactivity fee. Active scalpers can avoid this by making five trades a year.
IRAs, which are helpful for managing taxes during trading, do come with fees. A standard IRA costs $35 annually, with a $50 closing fee. Crypto IRAs carry a $100 yearly charge. Futures IRAs also have fees.
However, TradeStation offers its trading software without extra charges, adding value for scalpers. Like other brokers in the U.S., TradeStation requires $25,000 for pattern day trading accounts.
Margin
TradeStation offers margin accounts as well. IRAs can access limited margin, allowing trades with unsettled (but not borrowed) funds.
Most stocks offer 4:1 leverage for day trading, but some stocks have stricter limits. TradeStation provides a webpage listing these special requirements and stocks available for easy borrowing.
The platform also lists threshold securities, which are restricted for short selling by market centers.
Margin trading fees at TradeStation follow a tiered pricing model:
Debit Balance
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TradeStation Margin Rate
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under $25,000
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13%
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$25,000 - $49,999.99
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13%
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$50,000 - $499,999.99
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12%
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$500,000+
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call 800-770-4049
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Market Data
TradeStation offers several data packages. Non-professional traders generally get real-time data for stocks, options, futures, indices, and crypto for free. However, Level II data packages may have additional costs. Here are some sample packages:
Package | Non-pro | Pro |
ARCA Book Data | $11 | $61 |
Nasdaq, Level II | $11 | $112 |
OTC Markets, Level I | $6 | $36 |
CBOT Floor-Traded, Level 1 | $131 | $131 |
It’s simple to add or cancel data packages. Just log in to your TradeStation account, click the Customer Profile tab, and navigate to the software & data packages section.
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Scalping on the Tradestation Platform
After opening and funding an account, users can explore TradeStation 10, the company’s latest desktop software.
TradeStation 10 provides tools essential for scalpers, including a right-click menu with trading tools, drawing options, technical indicators, and plot styles. Over 20 drawing tools are available, such as:
- Arrow down
- Rectangle
- Horizontal line
- Fibonacci Cycles
It also offers over 150 technical studies, including:
- TRIX
- Moving average – 3 lines
- Bollinger Bandwidth
- Chaikin Volatility
The platform includes multiple order tickets. The Quick Trade Bar, accessible from the Apps menu, functions like a forex dealing box, enabling quick trades with a click. Advanced orders, like bracket and OCO, are also available.
A day-trading workspace is pre-installed. You can find it by clicking the TS Today tab and browsing the available workspaces.
The Apps menu houses additional tools like a time & sales widget, TSAlgos (algorithmic trading), and the Matrix price ladder.
Scalping on the Tradestation Website
TradeStation offers three web platforms ideal for scalping: the main platform, a crypto platform, and FuturesPlus, which focuses on futures options.
The main platform supports various order types, such as:
- Exit – 1 limit and 1 stop market level
- OSO - Entry short – with exit – stop limit only
- Trailing stop
A trading matrix is on the right side of the screen. You can place stop or limit orders by clicking on bid or ask prices.
Although the website’s charting tools are not as advanced as TradeStation 10’s, they include drawing tools and 1-minute candlestick intervals. The chart updates instantly, and a basic order ticket sits at the top.
Futures scalping is available, including trading the E-mini contract (ticker: 'ES').
The crypto platform includes large order buttons and customizable settings for faster trades. Scalpers can disable trade confirmations and enable hotkeys for speed.
Scalping on the Tradestation Mobile App
TradeStation’s mobile app supports scalping, including crypto trading through a mobile-friendly site.
The app includes tools for trading stocks, options, and futures, with advanced order types and a price ladder.
While charting tools are simpler than on the desktop version, the app features an OHLC pop-up window for easy trade access.
Paper Trading
Scalpers can practice on the web platform, mobile app, and TradeStation 10. Learning the order ticket system is highly recommended due to its complexity.
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Best Broker for Scalping Final Thoughts
TradeStation offers many scalping resources, but some fees apply. Traders should understand these fees before starting.
Updated on 8/19/2024.
I work in investment analytics and have been investing in the market since I was in high school. I enjoy anything that involves lots of strategy (i.e. a good game of chess), which is why I was naturally drawn to investing and researching companies. Outside of investing, I’m a big fan of the outdoors. In summer, you’re most likely to find me kayaking, camping, and hiking in the mountains.
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