TradeStation Review

Broker Review

 

Likes - Unique trade tools and an open platform allows for 3rd party platform development; supports automated trading.

Dislikes - Pricey platform fees charged if monthly minimums are not met; tools not new investor friendly.

Bottom Line - TradeStation is a broker designed only for the tech hungry trader who trades actively, can meet the monthly minimums, and seeks to create their own trading strategies.

TradeStation is an online broker well respected for its proprietary rules based fully automated trading platform. They provide stock, option, mutual fund, bond, future, and forex trade execution for their users. TradeStation offers a complete trade simulator so its clients can create, test, and then implement custom trading strategies.

Our TradeStation review provides trade platform screenshots, detailed commissions information, and online broker ratings. Also discover how TradeStation placed in the most recent StockBrokers.com 2011 Review of Online Brokers as well as the 2011 Barron’s Review of Online Brokers**.

Commission Notes

Before reading through the commission notes below for TradeStation, it is important to note that the broker charges a base platform fee of $99.95 per month alongside $59.95 for the RadarScreen tool unless you reach any of the following trading activity minimums during the preceding month:

A. Stocks - Trade 5,000 shares.
B. Options - Trade 50 contracts.
C. Forex - trade 10 round-turn lots or 100 round-turn mini lots.
D. Futures - Trade 10 round-turn futures or futures option contracts or 50 round-turn single stock.
E. Other - Have atleast $1 million in account balance on the last day of the previous calender month.

If you are not a brokerage client then you can still gain access to the platform for a fee of $249.95 per month. Other additional features can be added to the platform including RadarScreen for $59.95 per month and OptionStation for $59.95 per month.

The broker offers two commission plans. For simplicity we utilized the Flat-Fee plan throughout the site. Full commissions schedule including both plans are broken down below.

Stock Trades - TradeStation offers two commission plans: Per-Share and Flat-Fee.
  • Per-Share pricing: First 500 shares are $.01 per share, $.006 per share all shares thereafter. There is a $1 minimum per order. For example a 500 share trade would be $5 total and a 1000 share trade would be $8 (500x.01 + 500x.06).
  • Flat-Fee pricing: If making 1 - 9 trades per month the rate is $9.99 per trade. For 10 - 29 trades per month the rate is $7.99 per trade. Lastly, if making 30 or more trades per month the rate is $6.99 per trade.
Customers much choose one commission plan per account. All phone orders cost $20 extra per trade. Pink sheet stocks (OTCBB) are also available to be trades for $9.99 per trade (up to 100,000 share positions only)

Options Trades - Options trades 1.00 per contract with no base fee and no minimums.

Mutual Funds - Mutual funds cost $14.95 per trade. Other fees may apply depending on the fund.

Other Investments - TradeStation also offers futures, forex, bonds, and t-bills.
 
TradeStation was reviewed by StockBrokers.com on 2012-01-25 with an overall rating of 3 Stars.

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