TradeStation is a leading online broker that facilitates the trading of stocks, options and futures. Traditionally aimed at experienced traders, the broker offers a powerful trading platform and a range of advanced features. This review of Tradestation will examine all elements of their offering, including accounts, brokerage fees, mobile apps and customer support, before concluding with a final verdict.

 

 

Account Types

There are two types of retail brokerage accounts, US Stocks and Options, and Futures. You can apply for both account types, but you trade on the same advanced platform.

Opening a TradeStation account also gives you access to paper trading. This simulator allows you to develop and test strategies without risking your own capital.

Simple setup allows you to start trading quickly. Check their website to see if you meet the rules and regulations. For example, the options margin requirements will differ from the minimum balance rules for cash accounts.

A brief history

Early history

TradeStation was the brainchild of two brothers William and Rafael Cruz. They started the business because they wanted a way to design, test, optimize and automate their own trading strategies.

The TradeStation Group, Inc. is actually the parent company of the online bond and futures brokerage firm. The main office is in Florida. However, the company is now global in nature with offices and addresses in:

  • Chicago
  • New York
  • Richardson
  • Sydney
  • London
  • Costa Rica

Between 1997 and 2011, you would have found the TradeStation Group as a Nasdaq-listed company. However, the acquisition by the listed company Monex Group, Tokyo Stock Exchange, was a new beginning.

Last few years

In the past few years, the company has gained traction in various countries, from the US and Canada to Europe and Australia. As a result of this international success, TradeStation has won numerous awards, including:

  • 2013 – TradeStation is a ‘Top Five’ online broker by Investor Business Daily for the second consecutive year. Additionally, it was named ‘Best for Regular Traders’ by Barron’s for the third year in a row.
  • 2014 – The broker breaks into the Korean and Chinese markets after signing licensing agreements with Shinhan Investment Corp. He’s also launching his TradingApp store, which features hundreds of third-party custom products. In the same year, TradeStation is rated as ‘the best trading system’ for the 10th consecutive year by the technical analysis of the magazine Stocks & Commodities.
  • 2015 – TradeStation is again rated ‘Best for Regular Traders’ and ‘Best for International Traders’ by Barron’s. Technical analysis of the magazine Stocks & Commodities recognizes the ‘Best trading system’.

It is clear that the developers and CEO have brought in numerous updates over the years to attract traders. If they continue to support more casual investors, the net worth will rise even further.

Minimum initial deposit

Originally, TradeStation was aimed at high-quality professional investors, who required a minimum account of $5,000. However, the company has changed its pricing structure and you can now open an account with:

  • $500 for accounts with stock trading
  • Minimum futures of $5,000
  • Minimum account size of $2,000 for options trading
  • $30,000 for stock and options pattern day trader accounts

While this may still sound high, you get advanced trading tools for your money. In terms of value, TradeStation could probably feature other exchanges with lower fees and minimum deposit requirements.

Distributions and commissions

TradeStation charges simple rates compared to other brokers. For shares, they use three different structures:

  • Per share
  • Stipulated amount
  • unbundle

For options, TradeStation uses a per share and a fixed fee. The latter is the most popular pricing structure. Stock trading costs $5, while options trades cost $5 + $0.50. Reviews on these fees are relatively positive as you get real-time market data for free. Not to mention, there’s no $99.95 monthly account fee if you don’t meet the minimum activity levels. As a result, it is the most cost-effective option for non-professional traders.

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Choose a margin account, and you can essentially borrow capital from TradeStation to increase your position (buying power). Although trading on margin can help you boost profits, it does come with disadvantages. For example, there is the risk of margin calls losing more than your initial deposit.

Consult the official website for margin interest rates as it will depend on the instrument and account type.

Other Trading Fees

User reviews have quickly praised TradeStation for not having a range of hidden fees that can cut into your returns in the end. There are of course some of the industry standard brokerage and platform fees you would expect, such as:

  • $125 outgoing transfer fee
  • Annual account fee of 35 dollars
  • $50 IRA account termination fee
  • Annual inactivity fee of $50 for stock accounts that do not place five trades per year, or have an average monthly account balance of $2,000.
  • Monthly data fees range from $1 to $150 for different indexes, depending on your account type

In general, TradeStation’s stock and option fees are towards the higher end of the industry. Rates for future prices and requirements can also feel expensive. But as shown below, TradeStation offers a much more comprehensive and in-depth service than many other brokers, which probably justifies this cost.

TradeStation offers unique deals and promotions. For example, military veterans of the activity and first responders can all sign up for the TradeStation Salutes program. It gives you access to absolutely free stocks, ETFs and options. It also includes all the standard benefits that come with a standard fixed fee account, such as zero platform fees and free basic market data feed.

It’s also worth keeping an eye on the official website for current join offers, referral schemes and any other promotions.

 

 

Trading Platforms

Web trading platform

For those who do not have the required hardware systems for desktop download, you can use the web trading tool with just an internet connection. You get access to streaming realtime data plus fast execution speeds.

Additionally, a secure connection is guaranteed when accessing from a Mac, Linux or PC web browser. Overall reviews about web trading are positive, but they noted that experienced traders want the extensive features of the table platform.

Desktop platform

Although software reviews of the 9.5 download were popular, TradeStation 10 would be the new and improved platform. Some of the highlights on the platform include:

  • Customizable mapping
  • Automatic strategy trading
  • Impressive execution speeds
  • Quick tools for scanning markets
  • Volume and market profiles
  • Advanced order entry and management
  • A market depth window that can track the activity of certain market makers

Thus, users have extensive functionality and a variety of functions. Of course, you also get all the useful basics, such as news feeds, email alerts and direct map capability. It’s also simple to place trailing stops, find retesting strategies and track an interest in cryptocurrency. In addition, you can create your own indicators using the Easy language of TradeStation, where you can find tutorials on the online trading academy.

In particular, TradeStation.com’s retest reviews are positive, even against Multicharts. This means traders can test and replay a strategy with real data before risking their own capital.

Overall, the table platform is one of the best in the industry, including Metatrader.

TradeStation mobile apps

Mobile app reviews show that users are mostly satisfied with TradeStation’s offering. You can get iOS and Android trading apps from their respective app stores.

Once logged in, you’re met with watch lists, real-time quotes, and customization capabilities. The interface is clean, partly because the data displayed is kept to a minimum. Drawing tools, futures plus symbol lists and search are also easily accessible. You can also set helpful text alerts within the app.

In 2017, Matrix was added to iPhone and Android apps. It is a learning trading tool that allows you to buy and sell with one click from a realistic level 2 quote window. The implementation of limit orders is especially useful when day trading counts where every penny per share counts. While it’s worth noting that Tier 2 data isn’t part of the free package, it’s an $11 monthly fee.

In addition, you get:

  • 20 optional indicators
  • Visibility after hours
  • Manual tutorials and tips
  • Full chart types including Heikin-Ashi and renko bars

The biggest drawback is the limited indicator set. 20 is well below competitors, such as NinjaTrader. You also cannot compare the performance of multiple securities simultaneously.

Overall, the reviews of the iPad and Android app were satisfied with the presentation of TradeStation. The programs provide a smooth transition from the desktop based applications. It provides all the basic tools you need to generate income.

Methods of payment

Before you can start trading FX or speculating on Bitcoin (BTC), your account must be funded. Fortunately, deposits and withdrawals can be made in a variety of ways, including:

  • check
  • Electronic remittance
  • Online bank transfer

Consult the official website for more information on transferring funds, debit cards and wire instructions.

Demo account

Customer reviews of traders in forex, stocks and options are quick to point out disadvantages when it comes to the free download of TradeStation’s demo account. Mainly that such a practice account does not exist. Instead, virtual trading is only available once you have funded an account.

That said, the simulated account is good. For example, once you have completed the download and installation of the platform, you will have access to almost the same functions and features that live traders do. This is the perfect place to refine a strategy. If you contact TradeStation, you may even be able to reset your simulated account.

The fact that there is no free trial for public use can seriously deter novice traders. This means that potential customers cannot test the platform. The only option is to watch demo videos, which will not make many customers feel enough about the platform.

Having said that, it’s worth keeping an eye on their official website as TradeStation has at times offered a 60 day free trial.

 

 

Additional TradeStation Features

Education

Stock and forex reviews rarely come across such extensive additional sources. First, there is the wealth of educational resources from TradeStation University, from new platform training to helpful webinars. There are also manual PDFs to ensure that installation and getting started is made easy. User guides and e-books can also be found when you arrive at the customer center, so you can get set up and running straight away. Finally, TradeStation Labs helps you apply your newfound trading knowledge.

WebAPI

The application programming layer WebAPI helps to run numerous applications. It also means that third-party developers can create and integrate applications using a programming language that composes and receives HTTP requests and responses.

Automatic trading

It is no secret that large numbers of users are now taking advantage of the capabilities of genetic algorithmic trading. Automation allows you to enter far more trades than you ever could manually. It is also simple to implement on TradeStation. You simply:

  • Activate a Chart Analysis window containing a strategy.
  • Select a strategy with the display ‘on’.
  • Under Automation, hit Generate strategy orders for display on the Strategy Orders tab of TradeManager.
  • Click on the automatic execution using the [account number] account with confirmation checkbox.
  • Click I agree.
  • Check that the information is correct and then click Close to apply the changes.

Automated trading reviews rate TradeStation’s service highly. It is simply so quick and easy to set up. However, high frequency trading is not a shortcut to riches. You still need to monitor your strategy closely.

RadarScreen

Part of your download of your platform software gives you access to the RadarScreen feature. Rather than sifting through historical option data and quote shortfalls, you can easily identify potential opportunities. You can also customize the scanner according to maps and market trends.

Hot lists

It helps to flag unusual activities. More than 100 charts will help you see which ticker index and futures symbols can break above the 52-week high. You can immediately see that the Bitcoin futures contract is about to open, for example.

EasyLanguage

Forget API-python, the EasyLanguage feature lets you create custom analytics tools and strategies. You can build and modify indicators on your trading platform. It is ideal for traders with minimal coding knowledge.

Regulation and License

User forums demonstrate the demand for reliable and regulated brokers. Fortunately, TradeStation is one of the most trusted online brokers in the world. The broker is registered with SEC and has good relations with FIRA.

Users can relax with the knowledge that their accounts are protected in a variety of scenarios, such as bankruptcy or failure. This is because TradeStation is a member of the Securities Investor Protection Corporation (SIPC). Therefore, accounts are guaranteed for up to $500,000, including $250,000 in cash.

Advantages

There are several good reasons why prospective traders should consider TradeStation, including:

  • Accessibility – TradeStation is continuously improving their global accessibility and community. Non-US citizens from the UK, Germany, India, Japan, Israel and many more are welcome.
  • EasyLanguage – Blogs and forums are quick to point out how fantastic the Easy Language system is for merchants with little coding experience who want third-party development. There are also numerous Easy Language manuals and examples there to help users.
  • Powerful Platform – After the platform overhaul, the TradeStation 10 platform promises all the tools traders need to trade effectively. In fact take their own platform vs Metatrader 4 and make a worthy contender for the gold standard in the industry. In addition, the Web Trading system briefly compliments the desktop platform.
  • Easy to use – Using TradeStation vs eSignal, Robinhood, FXCM and Interactive Brokers, reviews show that new traders immediately market first time trading services.
  • Historical data export – Securities brokers often fall short in terms of market data, but customer reviews show that TradeStation has exceeded with large amounts of historical data that can be downloaded. It allows users to test and optimize strategies.
  • Customer Support – Reviews of stocks and futures show that customer service representatives can solve most problems when a platform stops working. You also have a choice between contact options, from phone support to live chat and email.

Disadvantages

Despite the advantages above, there are also several disadvantages to the TradeStation offering, including:

  • Watchlists – you cannot sync watchlists across platforms. Instead, you have to keep them separate, which detracts from the overall user experience.
  • Free data limitations – as data overviews frequently highlight, the free data you receive with a flat-fee account does not include Dow Jones Industrials and Russell 2000 index statements.
  • ETF and Mutual Fund Limitations – While TradeStation does offer a range of ETFs, there are no commission-free ETFs. Furthermore, there is a lack of in-depth research. It is the same with mutual funds. Although they offer about 4,900, there are no funds with no transaction fees, and research is minimal. That said, if you take TradeStation vs Fidelity, TD Ameritrade and Etrade, the fund commission of $14.95 is about the industry average.
  • Additional Fees – TradeStation has lowered some fees, such as the monthly base platform fee of $99.95 for real-time access to market data from the Nasdaq, OPRA and Amex exchanges and the New York Stock Exchange. However, many features still require an expensive subscription for those who do not meet account and trading minimums.
  • Disadvantages of less active traders – While many brokers, such as Oanda, create a level playing field for all traders, TradeStation’s per share / per contract commission plan benefits active traders at the expense of more casual investors.

Trade hours

Trading times are mostly the same regardless of the location of users. However, TradeStation also offers after-hours trading. So, while the normal trading day is between 9:30am ET to 4:00pm ET Monday through Friday, you can actually trade from 8:00am ET to 8:00pm ET.

Users can trade automatically during long hours. You do not need any additional documentation. TradeStation also charges no extra commissions or fees for trading long hours.

Check the official website for upcoming holiday times.

Contact and customer service

There are a number of ways to get support from TradeStation for help, issues, complaints and any other issues. Reviews often praise the high level of customer service offered.

You can contact us by phone Monday through Thursday from 8:00 AM ET to 8:00 PM ET regarding new accounts, between 8:00 AM and 6:00 PM. Consult the website for the phone number in your location and time zone.

You can also email TradeStation at [email protected]. This can help you if your account is not working or you want to close your account. They can also walk you through the initial margin requirements for your brokerage account and much more.

Technical support is available 24 hours a day from Sunday 3:30 PM ET to Friday 8:00 PM ET. Reviews show that customer assistants were very knowledgeable and could help if platforms were not loading or connecting. They may also help when order types are rejected, as well as decipher notifications for you.

You can also use their live chat feature to get support. User reviews show that wait times were low

Finally, you can go to their website and FAQ page for support. With answers given in detail, many users will be able to fix problems themselves. You can also find useful information about shortcuts, training videos and unpaid funds.

Safety and Security

Events of the past year highlight the need for a legitimate broker. Untrustworthy brokers as well as false promises of wealth by untrustworthy brokers have led to an erosion of public confidence. So is TradeStation a good broker in terms of user security? There is no doubt that they go above and beyond to keep personal information and information safe. They do this in the following ways:

  • Monitoring – Sophisticated technologies are used by anti-fraud and money laundering specialists.
  • Encryption – Applications use 128-bit data encryption (TLS / SSL) to protect your account and personal information. Hardware and software firewalls also keep intruders at bay.
  • Alerts – you will receive an alert when material changes are made to your profile, including login credentials and contact information.
  • Privacy Policy – The TradeStation Group will not share your public information with third parties without their consent, without your consent.

Tradestation verdict

TradeStation is one of the best brokers with direct access. Users rate the comprehensive trading platform and the support for third-party add-ons. There are also extensive additional resources, as well as customer service staff who can answer any questions. The only downside is the relatively expensive fees that penalize less active traders.

Overall, TradeStation remains a worthy choice for experienced traders. However, beginners may be better off elsewhere, where they can find lower minimum requirements and a free demo account.

Accepted countries

TradeStation only accepts traders from the United States.