TradeStation vs. E*Trade Introduction
E*Trade has more users than TradeStation. Does that make E*Trade the better brokerage?
There’s only one way to see.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Tradestation
|
$0
|
$14.95
|
$0.50 per contract
|
$120*
|
$35
|
|
Etrade
|
$0
|
$0
|
$0.65 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Tradestation
|
|
|
|
|
|
|
|
Etrade
|
|
|
|
|
|
|
Investment Lineups
TradeStation is a self-directed broker that provides access to these investments:
- Bonds and bond equivalents
- Stocks (including over-the-counter and foreign shares)
- Options
- Futures
- ETFs
- Mutual funds
- Closed-end funds
E*Trade doesn’t offer foreign stocks and has no substitute for them. But E*Trade has no inactivity fee, while TradeStation charges $50.
Only E*Trade has a managed investing service. It’s a robo program that costs just 0.30% yearly and needs a $500 minimum. It uses low-cost ETFs.
E*Trade’s self-directed side has Prebuilt Portfolios, which create a personalized group of mutual funds and ETFs at no extra cost. TradeStation doesn’t have this.
Winner: Fairly even overall
Margin
Except for E*Trade’s robo program, both brokers’ accounts can use margin. Borrowing money to trade costs you, of course. Here’s TradeStation’s margin schedule for securities accounts:
|
Debit Balance
|
TradeStation Margin Rate
|
|
under $25,000
|
12.5%
|
|
$25,000 - $49,999.99
|
12.5%
|
|
$50,000 - $499,999.99
|
11.5%
|
|
$500,000+
|
call 800-770-4049
|
E*Trade has more tiers:
|
Debit Balance
|
E*TRADE Margin Rates
|
|
$250,000 - $499,999.99
|
11.2%
|
|
$100,000 - $249,999.99
|
11.7%
|
|
$50,000 - $99,999.99
|
12.2%
|
|
$25,000 - $49,999.99
|
12.7%
|
|
$10,000 - $24,999.99
|
12.95%
|
|
$0 - $9,999.99
|
13.2%
|
E*Trade—unlike TradeStation—displays margin details for specific symbols on its platforms, including requirements in dollars and percentages.
Winner: Could go either way
Websites
A good starting point for trading is a firm’s website. E*Trade and TradeStation both have online tools that are user-friendly yet powerful. TradeStation’s website is pretty basic; it’s mainly for account management tasks like getting statements.
To place trades, TradeStation has a browser platform you can launch from its website. It comes packed with helpful features. When we tested it, we really liked:
- Simulated mode to practice
- Trading matrix with order form at the top
- News articles with thumbnail pictures
- Advanced trade ticket
- Full-screen charts with many tools
- Option chains with built-in spreads and small profit/loss graphs
- Custom multi-leg trade form
How does E*Trade compare? Very well, it turns out. Its website can handle both account management and trading, which sets it apart. Beyond that, E*Trade has Power, a separate platform that uses a more advanced order ticket than the website. It also provides strong charting.
There’s a Quick Trade ticket on Power for rapid order submission. You can disable the confirmation screen for even faster trades.
Winner: E*Trade
Mobile Apps
Now let’s look at phone and tablet apps. TradeStation has one app, E*Trade has two. TradeStation’s app includes a practice mode. One of E*Trade’s apps does, too. TradeStation’s app also offers:
- A price ladder with buy/sell buttons (under Matrix)
- Option chains with spreads and custom trades
- A hot list with many filters
- Alerts
- Watchlists
- An order ticket with account switching
E*Trade’s two apps together provide some tools missing on TradeStation’s app, like mobile check deposit and video news. One E*Trade app can place mutual fund trades, which TradeStation’s app cannot (they must be done on its website).
A feature we really appreciated on the main E*Trade app was a screener for stocks, mutual funds, and ETFs, with filters like industry, earnings, and volume.
Winner: E*Trade
Desktop Software
Both brokerages also provide computer-based programs. E*Trade calls its desktop system Pro, and it’s quite good. It has robust tools for both stocks and options (you must use Power for futures). A chart can fill the screen, and right-clicking opens many choices.
TradeStation 10 is the latest desktop platform from TradeStation. It also has a lot of great features, including:
- Advanced trade form
- TradeManager Analysis
- Market Depth
- OptionStation Pro for derivatives
- Trading algorithms via TSAlgos
Winner: Pretty close
Day Trading
Extended Hours: Both TradeStation and E*Trade have morning and evening stock sessions. E*Trade alone provides overnight trading in a few ETFs. Futures trade nearly 24 hours.
Direct Access to Venues: Found on Pro (not Power) at E*Trade. TradeStation allows direct routing on both its desktop and browser systems and has more routes.
Shorting: You can short at either broker. Only TradeStation has a short locate tool.
Routing Fees and Rebates: TradeStation supports them; E*Trade does not.
Level 2 Quotes: Both firms provide these.
Winner: TradeStation
Extra Services
Dividend Reinvesting: E*Trade offers DRIP service; TradeStation does not.
IRAs: Both brokers have IRAs, and both let you trade futures inside one. TradeStation charges $35 each year for a securities IRA plus a $50 closeout fee. E*Trade only has a $25 fee for early withdrawals.
Cash Management Tools: E*Trade owns a bank and has banking products, including lines of credit and ATM fee refunds. TradeStation does not.
IPOs: Both firms have new stock offerings. TradeStation investors can use ClickIPO. E*Trade investors can visit the IPO center (under Trading on the website).
Fractional-share Trading: Only E*Trade offers stock or ETF purchases in fractional amounts.
Auto Mutual Fund Purchases: Only E*Trade offers automatic fund investing. Thousands of funds are eligible.
Winner: E*Trade
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Updated on 1/26/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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