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TradeStation Review 2023

Категорія — Учасники ринку
By Konstantin Vasilev Member of the Board of Directors of Cbonds, Ph.D. in Economics
Updated April 18, 2023

About the broker

TradeStation is a brokerage firm and web trading platform that allows traders and investors to buy and sell a wide range of financial instruments, including stocks, options, futures, mutual funds, bonds, ETFs, and cryptocurrencies. It was founded in 1982 and has traditionally focused on serving experienced, high-net-worth, and active traders. However, in recent years, TradeStation has expanded its services and removed its minimum funding requirements and platform fees, making it more accessible to traders of all levels.

The platform is known for its robust and customizable features, which include advanced charting, backtesting, automation, and order entry tools. Additionally, TradeStation offers a range of educational resources and a community for traders to learn and connect.

Key Features

TradeStation offers a variety of key features for traders and investors, including:

  1. Trading platform. TradeStation provides a powerful trading platform that offers advanced charting, backtesting, and automation tools, as well as customizable order types and direct-market access.

  2. Competitive pricing. TradeStation offers competitive pricing options, including commission-free trades for stocks and ETFs and low commissions for options and futures contracts trading.

  3. Options trading. TradeStation is known for its robust options trading capabilities, offering a range of advanced order types and risk management tools.

  4. Cryptocurrency trading. TradeStation Crypto helps users to trade 11 cryptocurrencies and offers a competitive fee structure, as well as the ability to earn interest on certain cryptocurrencies held in your account.

  5. Educational resources. TradeStation provides a variety of educational resources, including webinars, live trading events, and the YouCanTrade community, which offers educational content, mentorship, and community support.

  6. Retirement services. TradeStation offers traditional, Roth, and rollover IRAs, as well as other retirement planning tools and resources.

  7. Multiple platforms. TradeStation offers multiple platforms, including desktop, web-based, and mobile, allowing traders to access their accounts and trade from anywhere.

  8. Direct-market access. TradeStation has direct-market access, allowing traders to route orders to specific exchanges and access a wide range of trading opportunities.

Overall, TradeStation’s powerful trading platform, competitive pricing, advanced options trading tools, and educational resources make it a compelling choice for traders and investors looking to trade across multiple markets and asset classes.

Pros and cons

Pros

  • A professional-grade trading platform. TradeStation is a professional-grade trading platform with fast and reliable order execution, making it suitable for active traders.

  • Competitive pricing. The platform has competitive pricing for high-volume traders, with options for per-share or flat-rate commissions.

  • Flexibility and control for traders. The intuitive trading interfaces and advanced order types, such as bracket orders and trailing stops, provide flexibility and control for traders.

  • Find opportunities quickly. Dynamic symbol sorting and scanning tools help traders quickly find opportunities in the market.

  • Test strategies. The simulated trading environment allows traders to practice and test their trading strategies without risking their money.

  • Automated trading. Robust strategy development and automation capabilities enable traders to automate their trading based on custom rules and indicators.

Cons

  • Steep learning curve. The sophisticated interface and advanced features can be overwhelming for less experienced traders.

  • Zero no-transaction-fee mutual funds. They may be a drawback for investors looking for a low-cost way to invest in mutual funds.

  • Long wait for customer support. Due to its popularity, tech support may have potentially long hold times, which can be frustrating for traders in need of immediate assistance.

Account

TradeStation’s account opening process is straightforward and efficient, allowing customers to open and fund an account and start trading equities and options on the same day. The website is user-friendly and provides detailed information about pricing, platforms, and products, as well as educational resources.

TradeStation customers have access to multiple devices and platforms, including the flagship TradeStation 10 Desktop platform, a web-based platform with most of its functionality of the desktop version, and a full-featured mobile app for iOS and Android.

Regardless of the platform used, customers can access real-time streaming data, add technical indicators, and create custom watchlists. The same instruments are applicable across all platforms, and there are multiple ways to enter trade orders, with the option to use conditional orders, profit targets, and stop-loss orders.

Overall, TradeStation’s multiple platforms and intuitive interfaces make it easy for customers to trade and manage their investments. However, the platform’s sophisticated features may take some time to learn for less experienced traders.

Step-by-step registration

  1. Go to the TradeStation website at www.tradestation.com and click on the "Open an Account" button in the upper right corner of the homepage.

  2. You will need to select the type of account you want to open. Choose the account that best suits your investment needs.

  3. Fill out the required personal and contact information, including your name, phone number, email address, and social security number.

  4. Next, you will need to provide your employment status and income information, including your employer’s name and your annual income.

  5. You will also need to provide your investment experience and objectives, including your trading experience, investment goals, and risk tolerance.

  6. Review and accept the TradeStation account agreement and disclosures, including the terms and conditions, fees and commissions, and other legal information.

  7. Verify your identity by uploading a government-issued ID and proof of address, like a utility bill or bank statement.

  8. Finally, fund your account by linking your bank account or transferring funds from another brokerage account.

  9. Once your account is verified and funded, you can start trading and investing through the TradeStation platform.

Account futures

TradeStation offers several types of futures accounts, including individual, joint, corporate, trust, and IRA accounts. Futures trading at TradeStation is available on the TradeStation 10 desktop platform, the web-based platform, and the mobile app.

To open a futures account with TradeStation, you will need to provide personal information, including your name, address, and social security number. You will need to provide information on your trading experience, risk tolerance, and investment goals.

TradeStation offers competitive pricing for futures trading, with commissions starting at $1.50 per contract. The broker also provides access to a wide range of futures markets and asset classes, including agricultural, energy, metals, and financial futures.

Futures trading has significant risk and is not suitable for all investors. It’s important to understand the risks involved and to have a solid understanding of futures trading before opening a futures account with TradeStation or any other broker.

Investment options

TradeStation provides its customers with a wide range of investment options, including stock, ETFs, futures, and options trading. The direct-market routing, advanced order types, and IPO access make it a compelling platform for traders. The availability of cryptocurrency trading through TradeStation Crypto is also noteworthy, and the broker has won recognition for its innovative web-based platform and detailed market-depth information.

However, TradeStation does have some drawbacks in terms of investment options. For instance, dividend reinvestment plans (DRIPs) are not available, and orders for mutual funds cannot be placed online. Additionally, the broker does not offer fractional shares or forex trading, nor is international trading available.

TradeStation does offer retirement services, including traditional, Roth, and rollover IRAs. However, to be aware of the annual administration fee of $35 per year for an IRA, as well as the $50 closure fee, which may be less common among other brokers.

Trading products

TradeStation provides access to a wide range of trading products, including:

  1. Stocks. TradeStation offers online trading in stocks and exchange-traded funds (ETFs) with $0 commissions through its TS Select pricing plan.

  2. Options. TradeStation provides access to a comprehensive suite of options trading tools, including advanced order types, direct market access, and powerful options analysis tools.

  3. Futures. TradeStation offers online trading in futures markets, including agricultural, energy, metals, and financial futures.

  4. Cryptocurrency. TradeStation Crypto allows users to trade 11 different cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, among others.

  5. Bonds. TradeStation provides access to a variety of fixed-income products, including U.S. Treasuries, corporate bonds, and municipal bonds.

  6. Mutual funds. TradeStation offers online trading in mutual funds, although the broker does not offer no-transaction-fee mutual funds.

Commission and Fees

TradeStation offers competitive pricing options, with the TS Select pricing plan being the most commonly used structure. The plan includes access to all three of TradeStation’s trading platforms, with $0 trades for all stocks and ETFs, options trades at $.60 per contract, and futures at $1.50 per contract (per side).

TradeStation also has unique pricing options, such as the TradeStation Salutes program, which offers free trades for active military personnel, veterans, and first responders.

Penny stocks trades under TS Select are $0 for the first 10,000 shares and $0.005 per share after that, with an extra $0.005 per share if you direct the order to a specific venue.

TradeStation Crypto offers competitive volume-based fees starting at $2 + 0.65% for trades up to $1,000 and shrinking from there, with the ability to earn interest on certain cryptocurrencies held in your account.

Be aware of incidental fees, which are charged by all brokers, and TradeStation’s fee schedule can be complicated. For example, transferring out all or some of your positions incurs a $125 fee. Review the fee schedule carefully before opening an account.

Mobile app

TradeStation offers a mobile app that is designed with the functionality that active and professional traders require to succeed. The app provides access to Matrix (ladder trading) and complex options trading, which can make it easier for day traders to trade quickly and efficiently. It is also possible to access a TradeStation Crypto account directly through the mobile app.

The mobile app also offers watch lists and hot lists. Although mobile watch lists automatically sync with the web-based trading platform, they do not sync with the TradeStation desktop platform. However, there are predefined screeners available in the Hot Lists section to scan the market.

Charting on TradeStation mobile is well-equipped, with full chart and date range flexibility, after-hours visibility, active order visibility, and 45 optional indicators available. Drawing tools are also included, allowing traders to add trend lines or Fibonacci retracements to their charts. However, the charting functionality may feel cramped on smaller phone screens, and the horizontal view can compress the chart area too much.

Overall, TradeStation’s mobile app is suitable for active traders who require advanced functionality and access to multiple markets and asset classes. However, the charting functionality may be difficult to use on smaller phone screens.

Step-by-step registration

  1. Go to the App Store for iOS or Google Play Store for Android devices and search for the TradeStation app.

  2. Download and install the application on your mobile device.

  3. Once the app is installed, open it and tap on the "Create New Account" button.

  4. You will be prompted to choose the type of account you want to open. Choose the account that best suits your investment needs.

  5. Fill out the required personal and contact information, including your name, phone number, email address, and social security number.

  6. Next, provide your employment status and income information, including your employer’s name and your annual income.

  7. You will also need to provide your investment experience and objectives, including your trading experience, investment goals, and risk tolerance.

  8. Review and accept the TradeStation account agreement and disclosures, including the terms and conditions, fees and commissions, and other legal information.

  9. Verify your identity by uploading a government-issued ID and proof of address, such as a utility bill or bank statement.

  10. Once your TradeStation account is approved and funded, you can start trading and managing your investments through the TradeStation mobile app.

Note: If you already have a TradeStation account, you can log in to the app using your existing username and password.

Research and education

TradeStation’s research and education offerings are relatively limited compared to other brokers in the industry. The platform provides access to basic research tools such as screeners and reports, but it does not offer an in-depth market analysis of historical market data or research reports.

TradeStation does offer educational resources through its YouCanTrade service, which includes webinars, live trading events, and a community of traders who share insights and knowledge. However, these resources may not be as comprehensive as what other brokers offer, particularly for newer investors who may need more guidance.

Overall, TradeStation’s research and education offerings may be suitable for advanced or professional investors who have already developed their own resources and knowledge base. However, newer investors may need to look elsewhere for more comprehensive educational resources and research tools.

Alternatives to TradeStation

There are several alternatives to TradeStation that investors and traders may consider, depending on their specific needs and preferences. Here are some examples:

  1. TD Ameritrade. It offers a robust trading platform, a wide range of investment products, and educational resources. The broker offers $0 commissions for online stock, ETF, and option trades.

  2. ETRADE. It is another popular online brokerage that offers a range of investment products, including trade stocks, options, ETFs, mutual funds, and bonds. The platform also offers a variety of educational resources for investors.

  3. Fidelity. It offers a comprehensive suite of investment products and services, including stocks, options, ETFs, mutual funds, and bonds. The broker also offers a range of educational resources and tools for investors.

  4. Robinhood. It is a commission-free trading platform that offers stocks, ETFs, options, and cryptocurrencies. The platform is popular with younger investors due to its user-friendly interface and accessibility.

  5. Interactive Brokers. It offers a comprehensive trading platform with access to a wide range of markets and asset classes. The broker offers competitive pricing, with low commissions and margin rates, making it a popular choice for active traders.

Ultimately, the best alternative to TradeStation will depend on your investment goals, trading ideas, and preferences. Compare the features, pricing, and services offered by each platform before making a decision.

Editorial opinion

TradeStation is best for active traders who require an advanced trading platform with a variety of technical tools. The platform offers low commissions on stock, ETF, and options trades, making it an attractive choice for high-volume traders. Additionally, options trading is a particular strength of TradeStation, with a range of advanced order types available.

However, TradeStation may not be the best option for novice investors or those seeking to invest in mutual funds, as the platform does not offer fractional shares, and fees for mutual fund trades are relatively high compared to industry leaders. There are also several account fees to be aware of. Furthermore, the platform’s research resources are limited, which may be a drawback for some traders.

Contacts of TradeStation:

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вивчити найповнішу базу даних

800 000

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Більше 400

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80 000

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9 000

ETF

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