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 will examine all elements of their offering, including accounts, broker fees, mobile apps and customer support, before coming to a final decision.

Account Type

There are two types of retail brokerage accounts, US Equity & Options, and Futures. You can apply for both account types, but you will be doing all your trading on the same advanced platform. When opening a TradeStation account, you will also get access to paper trading. This simulator will allow you to develop and test strategies without risking your own capital. Direct setup allows for a quick start to trading. Just check their website that you meet the rules and regulations. The preferred margin option will differ from the minimum cash balance rule of a cash account, for example.

Brief history

Early history

TradeStation is the brainchild of two brothers William and Rafael Cruz. They brought the company to life because they wanted a way to design, test, optimize and automate their own trading strategies. TradeStation Group, Inc. actually a holding company of online securities and futures brokerage firms. Its headquarters are in Florida. However, the company is now global with office locations and addresses in:

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

Between 1997 and 2011, you will find the TradeStation Group as a Nasdaq GS listed company. However, the acquisition by the Tokyo Stock Exchange-listed company marks a new beginning.

Recent Years

In recent years, the company has gained traction in many countries, from the United States and Canada to Europe and Australia. As a result of this international success, TradeStation has won numerous awards, including:

  • 2013 – TradeStation ranked ‘Top Five’ Online Broker by Business Daily Investor for the second consecutive year. In addition, it was rated ‘Best for Frequent Traders’ by Barron’s for the third consecutive year.
  • 2014 – The broker entered the Korean and Chinese markets after reaching a license agreement with Shinhan Investment Corp. It also launched the TradingApp store, which is home to hundreds of custom products from third parties. In the same year, TradeStation was rated ‘Best Trading System’ by Technical Analysis of Stocks & Commodities magazine for the 10th consecutive year.
  • 2015 – TradeStation was again ranked ‘Best for Traders Traders’ and ‘Best for International Traders’ by Barron’s. Stocks & Commodities Technical Analysis Magazine awarded it the ‘Best Trading System’.

It is clear that the developers and CEOs have brought many updates over the years to keep the traders enthralled. If they continue to support more casual investors, their net worth looks set to increase.

Minimum Initial Deposit

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

  • $500 for a stock trading account
  • Minimum $5,000 futures account
  • $2,000 minimum account size for options trading
  • $30,000 for equity and day trader account pattern options

While this may still be high, you are getting an advanced trading tool for your money. Therefore, in terms of value, TradeStation can compete with other exchanges that offer lower prices and minimum deposit requirements.

Spreads & Commissions

TradeStation charges easy rates compared to other brokers. For equity they use three different structures:

  • Per Share
  • Flat Pay
  • Unbundled

For options, TradeStation uses per share and flat fees. The most popular pricing structure is the last one. An equity trade will cost $5, while an option trade costs $5 + $0.50. Reviews of this fee are quite positive, as you get basic real-time market data for free. Not to mention there’s no $99.95 account service fee if you don’t reach a minimum activity level. As a result, this is the most cost-effective option for non-professional traders.

Leverage

Choose a margin account and you can basically borrow capital from TradeStation to increase your position size (buying power). Although trading on margin can help you increase profits, it comes with disadvantages. For example, there is the risk of a margin call and losing more than your initial deposit. See the official website for the margin interest rate, as it depends on the instrument and account type.

 

Other Trading Fees

User reviews are quick to praise TradeStation for not having various hidden fees that can seriously cut into your end of day. Of course, there are some brokerage standards and industry-standard platforms that you can expect, such as:

  • $125 exit transfer fee
  • $35 annual IRA account
  • $50 IRA account termination fee
  • $50 annual inactivity fee for equity accounts that do not place 5 trades per year or hold an average monthly account balance of $2,000
  • Monthly data fees range from $1 to $150 for different indexes, depending on your account type

Overall, TradeStation’s equity and options fees are towards the higher end of the industry. Futures prices and requirements can also feel expensive. But as will be shown below, TradeStation offers a much more comprehensive and in-depth service than many other brokers, which can justify the cost. TradeStation provides special offers and promotions. For example, active duty military veterans and first responders can sign up for the TradeStation Salutes program. This gives you access to completely independent stocks, ETFs and trading options. It also brings all the standard benefits that come with a standard flat fee account, such as zero platform fees and free basic market data feeds. It is also worth keeping an eye on the official website to participate in the offer,

Trading Platform

Web Trading Platform

For those who lack the hardware system requirements for desktop downloads, you can use the Web Trading tool with just an internet connection. You’ll get access to streaming real-time data as well as fast execution speeds. In addition, a secure connection is guaranteed when accessing from a Mac, Linux or PC web browser. The overall web trading outlook is positive, but they note experienced traders will want the comprehensive features of a desktop platform. 

Desktop Platform

While 9.5 download software reviews have been popular, TradeStation 10 is a new and improved platform. Some of the important events include:

  • Customizable charts
  • Automated trading strategies
  • Impressive execution speed
  • A fast market scanning tool
  • Volume and market profile
  • Detailed order entry and management
  • Market Depth Window that can track the activity of specific market makers

So the user has a wide range of functions and features. Of course, you also get all the useful basics, such as news feeds, email alerts and live chart trading capabilities. Placing trailing stops, backtesting strategies and tracking cryptocurrency interest are also easy. In addition, you can create your own indicators with TradeStation’s Easy language, tutorials available in the online trading academy. In particular, BackStage.com reviews are positive even vs Multicharts. This means traders can test and replay strategies with real data before risking their own capital. Overall, the desktop platform is one of the best in the industry, including Metatrader.

AppsStop MobileStation

Mobile app surveys show users are mostly satisfied with TradeStation’s offerings. You can get iOS and Android trading apps from their respective app stores. Once you’re in, you’re filled with watchlists, real-time quotes and customization capabilities. The interface is clean, partly because the displayed data is reduced. Drawing tools, futures data and symbol lists and searches are also easily accessible. You can also set up helpful text alerts from within the app. In 2017 Matrix was added to iPhone and Android apps. This is a ladder trading tool that allows you to one click buy and sell from a real level 2 quote window. Executing limit orders is especially useful when day trading where every penny per share counts. In addition, you get:

  • 20 optional indicators
  • Vision after time
  • Trading tutorials and tips
  • Full chart types, including Heikin-Ashi and renko bars

The main disadvantage is the limited set of indicators. 20 is well below competitors, such as NinjaTrader. You also cannot compare the performance of several securities at once. Overall, iPad and Android app reviews have been filled with TradeStation offerings. The application makes a seamless transition from a desktop-based application. They provide all the basic tools you need to generate income.

Payment method

Before you can start trading FX or speculating on Bitcoin (BTC), your account needs funding. Fortunately, making deposits and withdrawals can be done through a number of methods, including:

  • Check
  • Wire transfers
  • Online bank transfer

For more details on fund transfer, debit card and wire instructions, see the official website.

 

Demo Account

Customer reviews from forex, equity and options traders quickly show the downside when it comes to TradeStation demo account downloads. Mainly such accounts do not exist. On the other hand, virtual trading is only available once you fund the account. Having said that, the simulation account is good. For example, once you complete the platform download and login, you will have access to almost all the same features and functions that live traders do. It’s the perfect place to perfect a strategy. If you contact TradeStation, you can also reset your simulation account. However, the fact that there is no free trial option for public use can seriously deter new traders. This means potential customers have no way to test-drive the platform. The only option is to watch a demo video, which will not give many customers a good feel for the platform. Having said that, it is worth keeping an eye on their official website, at times TradeStation has been running a 60-day free trial download.

Additional TradeStation features

Education

Equity and forex studies rarely find many additional resources. First, there is a wealth of educational resources from the TradeStation university, from new platform training to useful webinars. There is also a PDF manual to ensure installation and startup is made easy. User guides and e-books can also be found when you go to the customer center so you can set up and get to work. Finally, TradeStation Labs helps you apply the new trading knowledge you discover.

WebAPI

The WebAPI application programming interface helps run many applications. It also means that third-party developers can create and integrate applications using programming languages ​​that make and receive HTTP requests and responses.

Automated Trading

It is not a secret number of users who are now taking advantage of genetic algorithm trading capabilities. Automation allows you to enter and exit more trades than you could manually. It is also easy to implement on TradeStation. You only:

  • Activate the Chart Analysis window containing the strategy.
  • Choose a strategy that has an ‘on’ display.
  • Under Automation, hit Create strategy order for display in TradeManager’s Strategy Order tab.
  • Click on Automatic execution using account [account number] with the confirmation checkbox.
  • Click I Agree.
  • Check the information is correct and then press Close to apply the changes.

Automated trading rates TradeStation service rates very. It’s just so quick and easy to set up. However, high frequency trading is not a shortcut to riches. You still need to monitor your strategy carefully.

RadarScreen

Part of your platform software download will give you access to the RadarScreen feature. Instead of scrolling through historical options data and penny stock quotes, you can easily identify potential opportunities. You can also adjust the scanner according to market charts and trends.

Hot list

This helps flag unusual activity. More than 100 hot lists will help you see the picker index and futures symbol might break through the 52-week high. You can immediately see the bitcoin futures symbol should open in the open, for example.

EasyLanguage

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

 

Rules & Licenses

User forums indicate requests for trusted and regulated brokers. Fortunately, TradeStation is one of the most famous online brokers in the world. The brokerage is registered with the SEC and is in good standing with FIRA. Users can rest in the knowledge that their account is protected in various scenarios, such as bankruptcy or failure. This is because TradeStation is a member of the Securities Investor Protection Corporation (SIPC). Therefore, the account is guaranteed up to $500,000, including $250,000 in cash.

Benefits

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

  • Accessibility – TradeStation continues to improve accessibility and their global community. Already non-US citizens from the UK, Germany, India, Japan, Israel and loads more are welcome.
  • EasyLanguage – A quick blog and forum to highlight how great the EasyLanguage system is for merchants with little coding experience who want third-party development. Also, there are many language guides and simple examples there to help users.
  • A powerful platform – Following a platform overhaul, the TradeStation 10 platform promises all the tools traders want to trade effectively. In fact, they took a proprietary platform vs Metatrader 4 and they made a worthy competitor to the gold standard of the industry. In addition, the Web Trading system simply compliments the desktop platform.
  • Ease of use – When you put TradeStation vs eSignal, Robinhood, FXCM and Interactive Brokers, surveys show new traders can bond with the former’s trading services immediately.
  • Exporting historical data – Often securities brokers fall short in the form of market data, however, customer surveys show TradeStation goes above and beyond with tons of downloadable historical data. This allows users to test and optimize strategies.
  • Customer support – Equity and futures studies show that customer service representatives can resolve most issues when the platform stops working. You also have a choice of contact options, from phone support to live chat and email.

Weakness

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

  • Watchlists – You cannot sync watchlists across platforms. Instead you have to save separately which can reduce the overall user experience.
  • Free data limitations – As data reviews often highlight, the free data you get with a flat fee account does not include the Dow Jones Industrial Average and Russell 2000 index data.
  • ETFs and mutual fund limitations – While TradeStation offers a variety of ETFs, there are no commission-free ETFs. Moreover, there is a lack of in-depth research. This is similar to mutual funds. Despite offering about 4,900, there are no transaction fees and research funds are minimal. Having said that, when you take TradeStation vs Fidelity, TD Ameritrade and Etrade, the $14.95 fund commission is around the industry average.
  • Add-on Fees – TradeStation has dropped some fees, such as the basic $99.95 monthly platform fee for real-time market data access from the Nasdaq, OPRA and Amex exchanges and the New York Stock Exchange. However, many features still require expensive subscriptions for those who do not meet account and trade minimums.
  • Less losses of 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.

Trading Hours

Trading hours are mostly the same regardless of the user’s location. However, TradeStation also offers after-hours trading. So while normal trading days are between 09:30 ET to 16:00 ET Monday to Friday, you can actually trade from 08:00 ET to 20:00 ET. Users can automatically trade during extended hours. You do not need additional documentation. Also, TradeStation does not charge any additional commissions or fees for extended hours trading. Check the official website for the upcoming holidays.

Contact & Customer Support

For help, problems, complaints and any other issues, there are several ways to get support from TradeStation. Reviews often praise the high level of customer service offered. You can call between 08:00 ET to 20:00 ET Monday through Thursday and between 08:00 and 18:00 on Friday about new accounts. Check the website for phone numbers in your location and time zone. You can also email TradeStation at [email protected]. They 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 overall load. Technical support is available 24 hours a day from Sunday 15:30 ET to Friday 20:00 ET. Reviews show the customer assistant is very knowledgeable and can help when the platform won’t load or connect. They can also help when an order type is rejected, as well as interpret notifications for you. You can also use their live chat feature for support. User reviews indicate wait times are low. Finally, you can also go to their website and FAQ page for support. With the answers given in detail, many users will be able to fix the problem themselves.

Safety & Security

Events in recent years have shown the need for legitimate brokers. Both hacking and false promises of wealth by untrustworthy brokers have caused an erosion in public confidence. So, is TradeStation a good broker in terms of user security? No doubt they go above and beyond to keep data and personal information safe. In fact, they do so in the following way:

  • Monitoring – Advanced technology is used by anti-fraud and anti-money laundering experts.
  • Encryption – The application uses 128-bit data encryption (TLS / SSL) to protect your account and personal information. Hardware and software firewalls also keep attackers at bay.
  • Alerts – You will receive alerts when major changes are made to your profile, including login credentials and contact information.
  • Privacy policy – ​​TradeStation Group will not share non-public information with third parties other than their affiliates, without your consent.

Consultation Results

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