TradeStation vs. E*Trade Introduction
E*Trade is more popular than TradeStation. But does that make E*Trade the better brokerage?
The only way to know is to compare them.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Tradestation
|
$0
|
$14.95
|
$0.50 per contract
|
$120*
|
$35
|
|
Etrade
|
$0
|
$0
|
$0.65 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Tradestation
|
|
|
|
|
|
|
|
Etrade
|
|
|
|
|
|
|
Investment Lineups
TradeStation is a self-directed brokerage that lets you invest in:
- Bonds and similar investments
- Stocks (including OTC and foreign stocks)
- Options
- Futures
- ETFs
- Mutual funds
- Closed-end funds
E*Trade does not offer foreign stocks. But E*Trade does not have an inactivity fee. TradeStation charges $50 if your account is inactive.
Only E*Trade has an investment-advisory program. It is robo-only, costs just 0.30% per year, and has a $500 minimum. It invests in low-cost ETFs.
E*Trade’s self-directed accounts can also use Prebuilt Portfolios. This will build a group of mutual funds and ETFs for you, and it is free. TradeStation does not have this feature.
Winner: Pretty even overall
Margin
Except for robo accounts at E*Trade, both companies let you trade on margin. Borrowing money to buy investments costs money. Here is TradeStation’s margin schedule:
|
Debit Balance
|
TradeStation Margin Rate
|
|
under $25,000
|
12.5%
|
|
$25,000 - $49,999.99
|
12.5%
|
|
$50,000 - $499,999.99
|
11.5%
|
|
$500,000+
|
call 800-770-4049
|
E*Trade offers more margin tiers:
|
Debit Balance
|
E*TRADE Margin Rates
|
|
$250,000 - $499,999.99
|
11.2%
|
|
$100,000 - $249,999.99
|
11.7%
|
|
$50,000 - $99,999.99
|
12.2%
|
|
$25,000 - $49,999.99
|
12.7%
|
|
$10,000 - $24,999.99
|
12.95%
|
|
$0 - $9,999.99
|
13.2%
|
E*Trade, but not TradeStation, shows margin details for specific investments on its platforms. You can see margin requirements in both dollar and percent terms.
Winner: Debatable
Websites
You can start trading on either broker’s website. E*Trade and TradeStation both have digital tools that are easy to use and powerful. TradeStation’s site is very simple and is mostly used for account management, like downloading statements and confirmations.
For trading, TradeStation has a browser platform that you can open from its website. It has many useful features. In our test, we especially liked:
- Simulated mode for practice
- Trading matrix with an order ticket at the top
- News articles with pictures
- Advanced order form
- Full-screen charting with tools
- Option chains with spreads and small P/L diagrams
- Custom multi-leg order ticket
E*Trade also does very well. Its website can be used for both managing your account and for trading, which is different from TradeStation. E*Trade also offers Power, a separate platform. It has a better order ticket than the main website and strong charting.
The Power platform has a Quick Trade order ticket that can send orders to the market very quickly. You can turn off the normal confirmation window to make trading even faster.
Winner: E*Trade
Mobile Apps
Now let’s look at mobile apps. TradeStation has one, and E*Trade has two. TradeStation’s app has a demo mode, and so does one of E*Trade’s apps. TradeStation’s app has other helpful tools, such as:
- Price ladder with trading buttons (see the Matrix tab)
- Option chains with spreads and custom orders
- Hot list with different filters
- Alerts
- Watchlists
- Trade ticket with account switching
E*Trade’s two apps together have features that TradeStation’s app does not have, like mobile check deposit and video financial news. One of E*Trade’s apps also lets you trade mutual funds, which is not possible on the TradeStation app (they must be traded on the website).
One feature we liked on E*Trade’s main app is a screener. It can find stocks, mutual funds, and ETFs using different filters, like market segment, earnings, and volume.
Winner: E*Trade
Desktop Software
Both brokers offer more than just websites or mobile apps. You can use desktop trading software at either company. At E*Trade, the desktop platform is called Pro, and it lives up to its name. The program has good tools for trading stocks and options (futures have to be traded on Power). You can make a chart full-screen, and there’s a right-click menu with many options.
TradeStation 10 is the newest desktop program from TradeStation. It also has many useful features, including:
- Advanced order ticket
- TradeManager Analysis tool
- Market Depth widget
- OptionStation Pro, an advanced platform for options
- Trading algorithms with TSAlgos
Winner: Pretty even
Day Trading
Extended Hours: Both TradeStation and E*Trade offer morning and evening trading for stocks. Only E*Trade has overnight trading in some ETFs. Futures can be traded all day at both brokers.
Direct Access to Venues: Pro at E*Trade (not Power) allows direct-access routing. TradeStation has direct-access routing on both its desktop and browser platforms and offers more venues.
Shorting: Both brokers let you short stocks. Only TradeStation has a short locate tool.
Routing Fees and Rebates: Available at TradeStation but not at E*Trade.
Level 2 Quotes: Available at both brokers.
Winner: TradeStation
Extra Services
Dividend Reinvesting: Only at E*Trade.
IRAs: Both companies offer Individual Retirement Accounts. Both let you trade futures in an IRA. TradeStation charges a $35 yearly fee for a securities IRA and a $50 fee if you close the account. E*Trade charges $25 for early withdrawals.
Cash Management Tools: Only E*Trade has its own FDIC-insured bank. This bank gives customers access to banking features, including credit lines and ATM-fee refunds.
IPOs: Both brokers offer new stock launches. TradeStation customers use ClickIPO, while E*Trade customers can go to the IPO center on the website under the Trading tab.
Fractional-share Trading: Only E*Trade lets you buy stocks and ETFs in whole-dollar amounts.
Auto Mutual Fund Purchases: Only available at E*Trade. Thousands of funds can be set up for automatic purchases.
Winner: E*Trade
Our Recommendations
Mutual Funds: E*Trade has better mutual fund tools. These include a mutual fund screener, All-Star funds, fund profiles, a fund comparison tool, category profiles, and Prebuilt Portfolios. None of these are found at TradeStation.
Beginning Investors: The easiest way to start investing is with E*Trade’s automated account. TradeStation offers a demo account, which E*Trade Pro does not have (Power does).
Long-Term Investors & Retirement Planning: E*Trade has more retirement education and better choices for self-employed 401k plans and target-date funds.
Active Stock Trading: This is a tough call. TradeStation’s software is a bit more advanced in some areas, but E*Trade has better research tools.
Small Accounts: Because TradeStation has an inactivity fee and an IRA closeout fee, E*Trade is better for small accounts (its robo service needs $500 to start).
TradeStation vs E*Trade Judgement
E*Trade’s popularity does mean a better overall experience. But for global stocks,
TradeStation is a good choice, too.
|
Updated on 5/30/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
|