What is TradeStation?
TradeStation is a trading platform for full-time as well as part-time traders. This is one of the major online brokerages, which has become practical for regular investors in recent years. They have recently introduced TSgo on web and mobile. TSgo is a service that will allow you to trade stocks, ETFs, and options without any commission fees. The catch is that this benefit is only available for new and existing clients in the U.S.
The founders of this company are William and Rafael Cruz. First, they started a trading software company by the name of Omega Research. In 2001, this company (Omega Research) was transformed into an online securities brokerage by the name of TradeStation. So, this is a company with a rich history and strong background.
In this TradeStation review, we will see how this broker helps the active traders.
Pros
Exceptional Tools: Their tools are simply amazing, and they are constantly trying to improve their tools. It could be daunting to use their tools as a beginner, but the pros will surely appreciate the benefits of these tools.
Solid Research: With their advanced tools, you can take your research to the next level. In addition to the large number of indicators that they provide, you can also create your own indicators and back-test them against their large historical database.
Education: You get a lot of education and training for free, but there are paid courses available if you need them. I am sure that a beginner will be satisfied with all of their training and education.
TSgo: I like the TSgo service as it tries to make it easier for people to trade and use their platform without worrying about paying any commissions.
Cons
Lack of Research: It can’t be denied that research for ETFs, mutual funds, and bonds is not on par with the research for other securities.
Pricing Confusion: There are different pricing plans, which could cause confusion. So, you need to take some time to look at the plans and see which one is suitable for you.
How does TradeStation work?
Two different options are offered by this brokerage, which are TSgo and the TradeStation’s downloadable windows platform. Those who go for TSgo won’t get access to TradeStation downloadable windows platform and vice versa. So, you must choose what suits you best.
Let us look at what they offer.
TradeStation Go or TSgo: TSgo is not just a service for commission-free trading as it also provides you the trading and analytical tools to trade well. In case you are wondering, you can trade penny stocks for free.
They have included their stock lending program in TSgo. This program will allow clients to share in the revenue that they generate from loaning stock to short sellers.
You can access various educational materials, and I am sure that you will be impressed by what they have to offer. TSgo doesn’t offer as much functionality as the downloadable windows platform because you are limited to web and mobile apps, but it could suit many people.
Windows Platform: The features that are included in the windows platform aren’t necessarily excluded from TSgo. There are a lot of features that overlap between the two.
You will be able to perform technical analysis by using historical data of more than 40 years. This should give you enough room to study any trends that you like.
You will get real-time market data and the ability to import your local and proprietary market data manually. They offer impressive tools such as RadarScreen and Matrix. RadarScreen will allow you to rank up to 1,000 symbols in real-time based on more than 180 technical indicators and your own custom criteria. It will give you a continuous flow of trade ideas.
You can build charts by using any time frame or market activity. You can create custom price-based charts with audio or video alerts, as well. In short, you will get exceptional charting abilities here.
They have OptionStation Pro, which is used for options analysis. It has features such as 3-D position graphs, integrated probability cones, and drag-and-drop position management.
These are only some of the features of their platform because this review would be very long if I mentioned all of them in detail.
How much does TradeStation cost?
Like I mentioned before, there are different plans for the same security. I will try to cover all plans related to security here.
Stocks and ETFs: $5 per trade under the Per-Trade plan, $0.01 per share for first 500 shares and then $0.006 per share under the Per-Share plan, and the base rate depends on the number of trades made during the previous month under the Unbundled plan with the minimum commission being $0.02
Options: $5 per trade plus $0.50 per contract under the Per-Trade plan and $1 per contract with no base fees or minimums under the Per-Contract plan
Futures: $1.50 per contract, per side and $0.50 per contract, per side for CME Micro e-mini index futures under the Single-Tier plan and the price depends on the monthly contracts under the Tiered plan
Mutual Funds: $14.95 per trade
Bonds: $14.95 plus $5 per bond
You can find more details about their pricing on their website.
Final Thoughts
TradeStation is not the cheapest trading platform, to be honest with you. You can consider their TSgo offering, but it will most likely fail to satisfy the advanced users. You need $500 to open an account with them, and their pricing structure can be confusing for sure. Still, they are one of the best trading platforms for active traders. With advanced tools and accurate research, an advanced trader will feel right at home. Beginners should try TSgo and see how it goes. In short, this brokerage can suit beginners as well as advanced traders. You need to choose the right service and trade actively to get the best results