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

 

 

Types of Accounts

There are two types of retail brokerage accounts, US Equity & Options and Futures. You can apply for both account types, but you will do all your trading on the same advanced platform.

When you open a TradeStation account, you will also have access to paper trading. This simulator will allow you to develop and test strategies without risking your own capital.

Simple setup allows to start trading quickly. Just check on their website that you meet the rules and regulations. For example, the margin requirement will be different from the minimum balance rule of the cash account.

 

 

 

Brief history

Early history

TradeStation is the brainchild of 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. is actually the parent company of the online futures and stock brokerage company. Its headquarters are in Florida. However, the company is now global in nature with locations and office addresses at:

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

From 1997 to 2011, you’ll find TradeStation Group as a Nasdaq GS listed company. However, the acquisition by the Tokyo Stock Exchange-listed company Monex Group marked a fresh start.

Lately year

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 received numerous awards, including:

2013 – TradeStation was ranked by Business Investors as “Top Online Broker of the Year” for the second year in a row. Additionally, it was rated ‘Best for Regular Traders’ by Barron for the third year in a row.
2014 – The broker breaks into the Korean and Chinese markets after reaching a licensing agreement with Shinhan Investment Corp. The company also opened a TradingApp store, which features hundreds of custom products from third parties. In the same year, TradeStation was rated ‘Best Trading System’ by Stocks & Commodities Technical Analysis magazine for 10 consecutive years.
2015 – TradeStation is once again ranked ‘Best for Regular Traders’ and ‘Best for International Traders’ by Barron’s. Stocks & Commodities magazine technical analysis awards it the ‘Best Trading System’.

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

Minimum initial deposit

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

  • $500 for stock trading account
  • $5,000 minimum futures account
  • Minimum account size $2,000 for options trading
  • $30,000 for day and options trading accounts

While this may still sound high, you get advanced trading tools for your money. So in terms of value, TradeStation can also outperform other exchanges with lower fees and minimum deposit requirements.

 

Margins and commissions

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

  • Every share
  • Apartment fee
  • Solved

For options, TradeStation uses a fixed share and fee. The most common price structure is the latter. Equity trading would cost $5, while options trading would cost $5 + $0.50. Reviews of these fees are relatively positive, as you get basic real-time market data for free. Not to mention there’s no $99.95 monthly account service fee if you don’t hit the minimum activity level. Therefore, it is the most effective option for non-professional traders.

Use

Opt into a margin account and you can essentially borrow funds from TradeStation to increase position size (buying power). While margin trading can help you increase your profits, it comes with limitations. For example, there is a risk of margin calls and loss of more than your initial deposit. See the official website for margin rates, as they will depend on the instrument and account type.

Other transaction fees

User reviews were quick to commend TradeStation for not having a bunch of hidden fees that can seriously cut into your end-of-day profits. Of course, there are some standard brokerage and platform fees that you would expect, such as:

  • $125 delivery fee
  • $35 IRA annual account fee
  • $50 IRA account termination fee
  • $50 annual inactivity fee for stock accounts that don’t place 5 trades per year or keep an average monthly account balance of $2,000

Monthly data fees range from $1 to $150 for different metrics, depending on your account type

Overall, TradeStation’s equity and options fees point towards the higher end of the industry. Futures and asking prices can also feel expensive. But as will be shown below, TradeStation offers a much more comprehensive and in-depth service than many other brokers, arguably justifying these costs.

TradeStation does not offer special offers and promotions. For example, active veterans and first responders can apply for the TradeStation Salutes program. This gives you access to completely free stocks, ETFs and options trading. It also offers all the standard benefits that come with a standard flat fee account, such as zero platform fees and a free basic market feed.

It is also worth keeping an eye on the official website for current participation offers, referral programs and any other promotions.

Exchanges

Web trading platform

For those who lack the hardware system requirements for desktop download, you can use the Web Trading tool with just an internet connection. You’ll have access to real-time data transfers plus blazing fast execution speeds.

In addition, a secure connection is guaranteed when accessed from a Mac, Linux or PC web browser. Overall reviews of Web Trading are positive, but they have noted that experienced traders will want the comprehensive features of the desktop platform.

 

Desktop Platform

While the software reviews of the 9.5 download are universal, TradeStation 10 will be the new and improved platform. Some of the highlights of the platform include:

  • Custom chart
  • Automated Strategy Trading
  • Impressive execution speed
  • Quick market scanner
  • Volume and market profiles
  • Advanced order entry and management
  • The Market Depth window can track the activity of certain market makers

So users have extended functionality and a wide range of features. Of course, you also get all the useful basics, such as news feeds, email notifications, and the ability to trade live charts. Placing trailing stops, backtesting strategies, and trailing a cryptocurrency of interest is also very simple. On top of that, you can create your own indicators using TradeStation’s Easy language, instructions for which can be found on the online trading academy.

Specifically, TradeStation.com’s backtesting reviews are positive even compared to Multicharts. This means that traders can test and replay a strategy with real data before risking their own capital.

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

 

TradeStation mobile application

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

Once you log in, you’ll see watch lists, real-time quotes, and customization capabilities. The interface is clean, in part because the data on the screen is kept to a minimum. Drawing tools, future data plus symbol lists and lookups are also easily accessible. You can also set up helpful text alerts from within the app.

In 2017 Matrix was added to the iPhone and Android apps. This is a ladder trading tool that allows you to click and buy from a real time 2nd level quote window. Executing limit orders is especially useful when trading during the day where every penny per share counts. Although it’s worth noting that tier 2 data is not part of the free plan and comes with a monthly fee of $11.

 

On top of that, you get:

  • 20 optional stats
  • After-hours vision
  • Trading guide and tips
  • Full chart types, including Heikin-Ashi and renko . bars

The main limitation is the limited set of indicators. 20 is much lower than competitors, such as NinjaTrader. You also cannot compare the performance of multiple securities at the same time. Overall, iPad and Android app reviews are content with TradeStation’s offer. Apps that make a smooth transition from desktop-based apps. They provide all the basic tools you need to generate revenue.

Payment methods

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

  • Check
  • Transfer
  • Online bank transfer

For more details on money transfers, debit cards and transfer instructions, check out the official website.

Demo account

Customer reviews from forex, stocks, and options traders are quick to point out the downside to downloading TradeStation’s free demo account. Mostly such a practice account does not exist. Instead, virtual trading is only available once you have funded an account. Having said that, the simulation account is good. For example, once you’ve finished downloading and logging into the platform, you’ll have access to virtually all of the same features and functions that live traders do. It’s the perfect place to fine-tune a strategy. If you contact TradeStation, you can even reset your demo account. However, the fact that there is no free trial option for public use can seriously discourage novice traders. It means potential customers have no way to test drive the platform. The only option is to watch a demo video, which won’t give many customers a sufficient feel for the platform. Having said that, it’s worth keeping an eye on their official website, as TradeStation sometimes runs a 60-day free trial download.

Additional Features of TradeStation

Education

Stock and forex reviews rarely come across such extensive additional sources. First, there are countless educational resources from TradeStation university, from new grounding training to helpful webinars. There are also manual PDFs to make sure installation and getting started are easy. User manuals and e-books can also be found when you visit the customer center so you can get up and running. Finally, TradeStation Labs helps you apply your newfound trading knowledge.

WebAPI

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

Automated trading

It’s no secret that large numbers of users are now taking advantage of the capabilities of genetic algorithm trading. Automation allows you to enter and exit more trades than ever before manually. This is also simple to do on TradeStation. You simply:

  • Activate the Chart Analysis window containing the strategy.
  • Choose a strategy with ‘on’ display.
  • In the Automation section, tap Create Strategic Orders to display in the Manager’s Strategic Orders tab.
  • Click Automate by account [account number] with the confirmation check box.
  • Click I agree.
  • Check the information is correct and then press Close to apply the changes.

Automated trading reviews appreciate TradeStation’s service. It is simply very quick and easy to set up. However, high frequency trading is not a shortcut to get rich. You still need to carefully monitor your strategy.

Radar screen

A partial download of your platform software will grant you access to the RadarScreen feature. Instead of scrolling through historical options data and penny stock quotes, you can identify potential opportunities easily. You can also customize the scanner to match the  charts and market trends.

Hot List

This helps flag unusual activity. Over 100 hotlists will help you see which ticker and symbol futures can break through the 52-week high. You can instantly see a bitcoin futures symbol that is about to open, for example.

Easy language

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

Regulations & Licenses

User forums demonstrate the need for trusted and regulated brokers. Fortunately, TradeStation is one of the most reputable online brokers in the world. The broker is registered with the SEC and has a good relationship with FIRA. Users can relax in the knowledge that their accounts have protection in a variety of situations, such as bankruptcy or failure. This is because TradeStation is a member of the Securities Investor Protection Corporation (SIPC). As a result, accounts are guaranteed up to $500,000, including $250,000 in cash.

Benefits

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

  • Accessibility – TradeStation continuously improves their reach and global community. Already non-US citizens from UK, Germany, India, Japan, Israel and full load more are welcome.
  • EasyLanguage – Blogs and forums quickly highlight how great the Easy Language system is for traders with little coding experience looking to third party development. Furthermore, there are lots of Easy Language tutorials and examples to assist users.
  • Powerful Platform – After a platform overhaul, the TradeStation 10 platform promises all the tools that avid traders need to trade efficiently. In fact, take their proprietary platform against Metatrader 4 and they make a worthy contender for the industry gold standard. On top of that, the Web Trading system compliments the desktop platform very much.
  • Ease of Use – When you put TradeStation against eSignal, Robinhood, FXCM and Interactive Broker, reviews show that new traders quickly get to grips with the stylist’s trading offerings.
  • Historical Data Export – Stockbrokers are often short on market data, however, customer reviews show TradeStation above and beyond with large amounts of downloadable historical data . This allows users to back-test and optimize strategies.
  • Customer Support – Stock and future reviews show that customer service representatives can fix most issues when a platform is down. You also have a choice of communication options, from phone support to live chat and email.

Limit

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

  • Watchlists – You cannot sync watch lists across platforms. Instead, you have to keep them separate which reduces the overall user experience.
  • Free Data Limits – As regular data reviews highlight, the free data you get with flat fee accounts does not include Dow Jones and Russell 2000 Index data.
  • ETFs and Mutual Fund Restrictions – Although TradeStation offers a wide range of ETFs, there aren’t any free ETFs. Furthermore, there is a lack of in-depth research. This is similar with mutual funds. Despite offering around 4,900, there is no fund that does not have minimal transaction and research fees. Having said that, when you join TradeStation vs Fidelity, TD Ameritrade and Etrade, the $14.95 fund commission is well within the industry average.
  • Additional Fees – TradeStation has reduced a number of fees, such as a monthly base platform fee of $99.95 for accessing real-time market data from the Nasdada , OPRA and Amex exchanges, and the Department of Commerce. New York Stock Exchange. However, many features still require expensive subscriptions for those who do not meet account and trading minimums.
  • Cons of Inactive Traders – While many brokers, such as Oanda, create a level playing field for all traders, commission per share / per contract plan of TradeStation benefits active traders at the expense of more casual investors.

Trading hours

Trading hours are mostly the same regardless of user location. However, TradeStation also offers after-hours trading. So while the normal trading day is from 09:30 ET to 16:00 ET Monday through Friday, you can actually trade from 08:00 ET until 20:00 ET. Users can automatically trade in the long run. You do not need additional documents. In addition, TradeStation does not charge any additional commissions or fees for long trading hours. See official website for upcoming holiday hours.

Contact Customer Support

For help, problems, complaints and any other matter, there are several ways to get support from TradeStation. Reviews often commend the high level of customer service provided. You can be reached by phone from 08:00 ET to 20:00 ET Monday through Thursday and from 08:00 to 18:00 on Friday regarding new accounts. See 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 inactive or you want to close your account. They can also guide you through the initial margin requirements for your brokerage account and full load more. Technical support is available 24 hours a day from Sunday 15:30 ET to Friday 20:00 ET. Reviews show that the customer assistants are very knowledgeable and can help when platforms don’t load or connect. They can also assist when different types of orders are declined, as well as decode the messages for you. You can also use their live chat feature for support. User reviews indicate that wait times are low. Finally, you can also visit 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 hotkeys, training videos, and unhandled amounts.

Safety & Security

Events in recent years emphasize the need for a legit broker. Both hacks and false promises of wealth by unreliable brokers have led to an erosion of public trust. 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 ways:

  • Monitoring – Sophisticated technologies used by anti-fraud and anti-money laundering experts.
  • Encryption – The app uses 128-bit data encryption (TLS/SSL) to protect your account and personal information. Hardware and software firewalls also keep intruders out.
  • Alerts – You will receive an alert every time there is a significant change to your profile, including login and contact information.
  • Privacy Policy – TradeStation Group will not share non-public information with third parties other than their affiliates without your consent.

Traditional Judgment

TradeStation is one of the best direct access brokers. Users appreciate the comprehensive trading platform and support for third-party add-ons. There are also many additional resources as well as customer support staff who can answer any questions. The only downside is the relatively expensive fees that penalize less active traders. Overall, TradeStation is still a worthy choice for experienced traders. However, beginners may be better off elsewhere, where they can find lower minimum requirements and free demo accounts.

Accepted countries

TradeStation only accepts traders from the United States.