TradeStation vs. E*Trade Introduction
E*Trade is more popular than TradeStation. Does that mean E*Trade is the better brokerage firm?
There’s only one way to find out.
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 firm that delivers access to the following investment vehicles:
- Bonds and bond equivalents
- Stocks (including over-the-counter and foreign stocks)
- Options
- Futures
- ETFs
- Mutual funds
- Closed-end funds
E*Trade drops the foreign stocks and replaces them with nothing. But E*Trade doesn’t have an inactivity fee. TradeStation does (it’s $50).
Only E*Trade has an investment-advisory service. Available in robo format only, the cost is very low (just 0.30% per annum) and comes with a $500 minimum investment amount. The program trades ETFs with low-expense ratios.
E*Trade’s self-directed accounts have a similar program called Prebuilt Portfolios. It will create a customized basket of mutual funds and ETFs. This setup is free of charge. TradeStation has no such offering.
Winner: Pretty even overall
Margin
Excluding robo accounts at E*Trade, investment accounts at both firms have access to leverage through margin. Using other people’s money to buy securities will, of course, come at a cost. Here’s TradeStation’s margin schedule for securities accounts:
|
Debit Balance
|
TradeStation Margin Rate
|
|
under $25,000
|
12%
|
|
$25,000 - $49,999.99
|
12%
|
|
$50,000 - $499,999.99
|
11%
|
|
$500,000+
|
call 800-770-4049
|
E*Trade has more tiers:
|
Debit Balance
|
E*TRADE Margin Rates
|
|
$250,000 - $499,999.99
|
10.7%
|
|
$100,000 - $249,999.99
|
11.2%
|
|
$50,000 - $99,999.99
|
11.7%
|
|
$25,000 - $49,999.99
|
12.2%
|
|
$10,000 - $24,999.99
|
12.45%
|
|
$0 - $9,999.99
|
12.7%
|
E*Trade, but not TradeStation, shows margin details on specific securities on its software. Particulars include margin requirements in dollar and percent terms.
Winner: Debatable
Websites
A good place to begin trading is on a broker’s website. E*Trade and TradeStation have digital tools that are easy to use but powerful. TradeStation’s site is actually quite simple; it is used primarily for account management tasks like downloading confirmations and statements.
For actual trading, there is a browser platform that is launched from TradeStation’s website. It has a lot of useful resources. During our test drive of the software, we particularly were impressed by:
- Simulated mode for extra practice
- Trading matrix with order ticket at the top
- News articles with thumbnails
- Advanced order form
- Full-screen charting with tools
- Option chains with integrated spreads and small P/L diagrams
- Custom multi-leg order ticket
And how does E*Trade compare? Remarkably well, as it turns out. Its website can be used for both account management and trading, which is the first major difference here. On top of the website trading tools, E*Trade also offers Power, a discrete platform. It has a more advanced order ticket than the website has, and charting is on a high level, too.
There is a Quick Trade order ticket on Power that, as the name suggests, can rapidly send an order to the exchanges. The usual confirmation pop-up window can be turned off, allowing for an even faster experience.
Winner: E*Trade
Mobile Apps
Next up is mobile apps. TradeStation has one, and E*Trade has two. TradeStation’s app has a demo mode. One of E*Trade’s apps has the same feature. TradeStation’s mobile software has other features worth mentioning, such as:
- Price ladder with trading buttons (look on the Matrix tab)
- Option chains with spreads and custom orders
- Hot list with all sorts of filters
- Alerts
- Watchlists
- Trade ticket with account switching
E*Trade’s two apps combined deliver several features that won’t be found on TradeStation’s app. These include mobile check deposit and video financial news. One of E*Trade’s apps can also trade mutual funds. This is not possible on the TradeStation app (they have to be traded on the website).
One feature we really liked on the main E*Trade app was a screener. It can search for stocks, mutual funds, and ETFs by a variety of criteria, such as market segment, earnings, and volume.
Winner: E*Trade
Desktop Software
Neither brokerage firm has stopped with websites or mobile apps. Desktop trading is possible at either
broker with advanced software. At E*Trade, the desktop platform is called Pro, and it does live up to its name. The program has some really good tools for both equities and options (futures need to be traded on Power). A graph can be expanded the full width of the screen, and there’s a right-click menu with lots of choices.
TradeStation 10 is TradeStation’s latest desktop program. It delivers many useful features, too, including:
- Advanced order ticket
- TradeManager Analysis tool
- Market Depth widget
- OptionStation Pro, an advanced derivative platform
- Trading algorithms through TSAlgos
Winner: Pretty even
Day Trading
Extended Hours: Morning and evening sessions are available at both TradeStation and E*Trade for equities. Only E*Trade has overnight trading in some ETFs. And of course, futures trade around the clock.
Direct Access to Venues: Available on Pro (but not Power) at E*Trade. TradeStation offers direct-access routing on both its desktop and browser platforms. It also has more venues.
Shorting: It’s possible to enter short positions at either broker-dealer. Only TradeStation has a short locate tool.
Routing Fees and Rebates: TradeStation has them. E*Trade does not.
Level 2 Quotes: Available at either firm.
Winner: TradeStation
Extra Services
Dividend Reinvesting: Available only at E*Trade.
IRAs: Both firms have Individual Retirement Accounts, and both firms permit the trading of futures contracts in an IRA. It has an annual $35 fee for a securities IRA plus a $50 termination fee. E*Trade only has a $25 early withdrawal fee.
Cash Management Tools: Only E*Trade has its own FDIC-insured bank. This entity offers a host of banking tools, including lines of credit and ATM-fee refunds.
IPOs: Stock launches are available at both firms. TradeStation customers need to use ClickIPO. E*Trade clients should head to the IPO center (found under the Trading tab on the website).
Fractional-share Trading: Only E*Trade offers whole-dollar investing in stocks and ETFs.
Auto Mutual Fund Purchases: Only available with an E*Trade account. Thousands of funds are available for systematic purchases.
Winner: E*Trade
Our Recommendations
Mutual Funds: E*Trade has much better fund tools. These include an actual mutual fund screener, All-Star funds, fund profiles, a fund comparison tool, category profiles, and the Prebuilt Portfolios already mentioned. None of these are available at TradeStation.
Beginning Investors: An automated account at E*Trade is the easiest way to start investing. TradeStation’s software does offer simulated trading, which E*Trade Pro doesn’t have (Power does have it).
Long-Term Investors & Retirement Planning: E*Trade has more retirement education on its website. Plus, we like its lineup of self-employed 401k plans and target-date mutual funds better.
Active Stock Trading: Ugghhh, this one is much more difficult. We lean toward TradeStation because its software is a little more advanced, at least in certain areas. E*Trade has better research tools, though.
Small Accounts: Because of TradeStation’s inactivity fee and IRA closeout fee, we defend E*Trade here (its robo service requires $500 to get started).
TradeStation vs E*Trade Judgement
Yes, E*Trade’s popularity does seem to translate into a better overall experience. For global stocks,
though, TradeStation is worth an account application.
|
Updated on 9/10/2025.
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.
|