TradeStation vs Vanguard 2023

Comparing brokers side by side is no easy task. We spend hundreds of hours each year testing the platforms, mobile apps, trading tools and general ease of use among online brokerages, as well as comparing commissions and fees, to find the best online broker.

Though many U.S. brokers offer basic trading features, such as an app, charting tools, stock research and educational content, the depth of those features can vary widely. Let's compare TradeStation vs Vanguard.

In stock trading, the more you know, the better you’ll do. Taking advantage of resources like articles, webinars, videos and interactive elements is a great way to shorten the learning curve. In our analysis, we examine the availability of several different types of educational materials.

For 2023, our review finds that TradeStation offers more comprehensive new investor education for beginning investors than Vanguard. TradeStation offers investors access to Paper Trading, Videos, Education (Stocks) and Education (Options), while Vanguard offers investors access to Videos, Education (Stocks) and Education (Retirement). Neither have Education (ETFs), Education (Mutual Funds) and Education (Bonds).

TradeStation and Vanguard charge the same amount for regular stock trades, $0.00. Option contracts are pricier at Vanguard, costing $1.00 per contract versus $0.60 per contract at TradeStation. For futures, TradeStation charges $1.50 per contract and Vanguard charges (Not offered) per contract. For a deeper dive, see our best brokers for free stock trading guide.

Looking at a full range of investment options, including order types and international trading, our research has found that TradeStation offers a more comprehensive offering than Vanguard. TradeStation ranks #5 out of 17 brokers for our Investment Options category, while Vanguard ranks #10.

TradeStation offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds and Futures Trading, while Vanguard offers investors access to Stock Trading, Options Trading, OTC Stocks, Mutual Funds and Advisor Services. Neither have Fractional Shares and Forex Trading Looking at Mutual Funds, TradeStation and Vanguard both provide customers access to 0 no transaction fee (NTF) mutual funds.

In our analysis of top U.S. brokerages, we research whether each broker offers the ability to trade cash cryptocurrency, such as bitcoin and ethereum. Though crypto has risen steadily in popularity, availability still varies from broker to broker. Our review finds that neither TradeStation and Vanguard offer crypto trading.

To compare the day trading platforms of TradeStation and Vanguard, we focused on trading tools and functionality across both web and desktop-based platforms. Popular day trading platform tools include streaming real-time quotes, stock alerts, trading hotkeys, direct market routing, streaming time and sales, customizable watch lists, backtesting, and fully functional charting packages, among many others. For day trading, TradeStation offers a better experience.

After testing 25 features across the stock trading apps of TradeStation and Vanguard, we found TradeStation to be better overall. The best stock market apps are easy to use, have excellent design, and deliver a fully featured online trading experience. TradeStation ranks #10 out of 17 brokers, while Vanguard ranks #17.

TradeStation Trading App Gallery

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Vanguard Trading App Gallery

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For research, TradeStation offers superior market research than Vanguard. TradeStation ranks #11 and Vanguard ranks #13.

Over the years, we've found that the best brokers provide rich market commentary, a variety of third-party research reports, and thorough quote screens that are not just easy to navigate, but that also include a comprehensive selection of fundamental data. Robust stock, ETFs, and mutual fund screeners are also must-haves for trade idea generation.

TradeStation requires a minimum deposit of $0.00, while Vanguard requires a minimum deposit of $0.00. From our testing, we found that SoFi is the only broker that requires a minimum deposit.

TradeStation charges 13.50% for accounts under $25,000 while Vanguard charges a margin rate of 13.75%. The industry average of the 17 brokers we track is 11%.

Fractional shares are not offered by either broker. Our research has found that 41% of brokers offer fractional shares investing. Fractional shares allow traders to buy a part of a whole share of stock. For example, if Amazon is trading at $1,000, you could buy half a share for $500.

Both TradeStation and Vanguard allow you to trade penny stocks. TradeStation charges $0.00 per trade while Vanguard charges $0.00. Penny stocks are companies whose shares trade for under $5 and are listed over the counter (OTC). For brokers that do offer penny stock trades, the average commission is $3.

Online banking can be a benefit for investors, and some brokerages do provide banking services to customers. Neither TradeStation nor Vanguard offers Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans. Neither have Mortgage Loans.

StockBrokers.com partners with customer experience research group Confero to conduct phone tests from locations across the United States to thoroughly evaluate the quality and speed of brokerage customer service. (Read more about How We Test.) Here are the results of our current testing.

TradeStation was rated 10th out of 14 brokers, with an overall score of 7.5 out of 10.

Vanguard was rated 12th out of 14 brokers, with an overall score of 6.4 out of 10.

TradeStation supports casual traders through its web-based platform and active traders through its desktop platform. We like the web-based platform and mobile app, but the flagship desktop platform could use a refresh. TradeStation ranked among Best in Class in the Commissions and Fees and Investment Options categories in our 2023 Annual Review of online stockbrokers.

In the 2023 StockBrokers.com Annual Review, TradeStation ranked among Best in Class for Commission & Fees, Investment Options, Active Trading, Futures Trading, and Penny Stocks. TradeStation also won one StockBrokers.com Industry Award: No. 1 for Crypto Technology.

Vanguard is aimed squarely at buy-and-hold investors, and its platform reflects that focus. Vanguard is known for its low-cost funds, and the investment platform is really built for those looking to invest solely in mutual funds and ETFs.