TradeStation Review

Item: TradeStation
Rating: 3
Author: Chad Morris

TradeStation Pricing and Minimum Deposit

Investments	Commissions
Stocks and ETFs flat-rate plan	$0
Options	$0.60 per contract
Futures	$1.50 per contract
Mutual funds	$14.95
Bonds	$14.95 + $5 per bond
Forex	commission-free with tight spreads and fractional pips

Investments	stocks, options, mutual funds, bonds, futures, forex, ETFs
Tradestation minimum deposit to open account	$0 for cash account, and $2,000 for margin account
Fees	Tradestation fees
Promotion link	Tradestation promotions

Overview of Tradestation

Based in Florida, TradeStation has over 20 years of experience providing brokerage accounts and advanced trading software to clients worldwide. This review will evaluate the brokerage across several important areas.

Investment Lineup

TradeStation only offers self-directed services for both taxable and tax-deferred trading, with no investment advice or financial planning. The account types available include:

Trust
Individual
Joint
Corporation
IRA
Limited partnership
LLC

Regardless of the account type, investors have access to a broad range of investment products, including:

Stocks
Funds (closed-end, mutual, and exchange-traded)
Options
Futures and options on futures
Bonds

TradeStation serves U.S. residents and clients from many other countries, offering the same assets. Through a partnership with Interactive Brokers, TradeStation also provides access to foreign exchanges and additional assets like forex for both American and international clients.

Securities (but not other products) held at TradeStation are protected by SIPC up to $500,000, with an excess SIPC policy through Lloyd’s of London covering up to $24.5 million per customer and $300 million in total.

Minimums and Fees

TradeStation has separate pricing for U.S. and international residents. U.S. residents enjoy commission-free online trades of stocks and ETFs, subject to conditions such as:

- Stocks priced above $1
- $25 for broker-assisted trades
- 0.5¢ per share for orders over 10,000 shares or for direct-routed orders

Futures and options on futures cost $1.50 per contract, per side. Options are priced at $0.60 each, and Treasury trades are $50.

Non-U.S. residents follow the same fee structure, but with a base charge of $5 for stocks, ETFs, and options. No initial deposit is required, but funding is needed to access certain trading platforms.

TradeStation charges a $10 monthly inactivity fee, avoidable with a $5,000 balance or at least 10 trades every 90 days. There’s also a $35 annual IRA fee.

Level I real-time data for equities, futures, and options on futures, indexes, and equity options is free. Other data packages may have fees ranging from $0 to $131 monthly.

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Promotion to Open Account

Visit Tradestation Website

Margin Trading

TradeStation offers margin accounts, enabling trading with leverage. Day traders can get up to 4:1 leverage, with specific requirements posted on TradeStation’s website.

The margin interest rate is tiered: below $50,000, it’s 13% annually; between $50,000 and $500,000, it’s 12%; above that, rates are negotiable.

Website

TradeStation’s website is not the easiest to navigate. The Accounts tab allows management of balances, gains/losses, and positions.

tradestation reviews

The website lacks research and trading tools, accessible instead via a blue button for trade placement. The platforms available include securities and futures options, both in live and simulated modes, featuring:

- A vertical price ladder for quick trades
- An advanced horizontal trade ticket
- Full-screen charts with numerous tools
- An options window with various spreads
- News articles from Benzinga

Mobile App

TradeStation’s mobile app, recently updated, maintains most of its tools but has lost horizontal charting. It features options, news, and ladder windows on each security’s profile.

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The app allows for advanced order types found on the desktop platform, including bracket orders and OCO/OSO orders. It does not support mobile check deposits or live video news.

Desktop Program

TradeStation 10 is the firm’s flagship desktop trading software, offering professional-level tools and pre-built trading layouts. Users can customize these layouts, display multiple charts, and utilize a variety of trading tools.

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Day and Swing Trading

For day trading, securities accounts require a minimum balance of $25,001. TradeStation offers several direct-access routing choices, but these come with surcharges.

Banking Features

TradeStation’s major shortfall is its lack of banking features, offering no accounts or cash-management services beyond ACH and wire transfers.

Customer Support

Customer service is available through the Support tab, with phone support for trading desks and general account services during market hours and weekdays, respectively.

Other Services

TradeStation offers IPO access through ClickIPO but does not support fractional-share trading or dividend reinvestment. It does offer various types of IRAs but charges fees for them.

Our Recommendations

Mutual Fund Investors: TradeStation isn’t ideal for mutual fund investors due to a lack of a dedicated search engine and a fee per transaction. Firstrade would be a better option with its comprehensive search tools and no transaction fees.

Beginners: TradeStation’s complex platform is best suited for experienced traders. Beginners should consider a more user-friendly option like Robinhood.

Active Stock and ETF Trading: For frequent trading, TradeStation’s desktop platform is highly effective.

Long-Term Investors and Retirement Savers: While TradeStation offers IRAs, it lacks comprehensive long-term financial planning tools. Charles Schwab would be a better choice for these needs.

Small Accounts: Due to the inactivity fee, TradeStation is not recommended for small investors. Webull, which does not have such fees, would be a better fit.

Incentive to Open a Webull Account

Visit Webull Website