TradeStation and E*TRADE are both hugely popular brokers with powerful investment platforms that give investors a lot of vroom behind the wheel. And while they have many things in common -- like commission-free stock and ETFs -- they also have major differences that could make one more well-suited than the other for certain investors. Below, we'll delve deeper into these similarities and differences to help you decide which is the best platform for you.
TradeStation vs. E*TRADE: At a glance
| Offer | TradeStation | E*TRADE |
|---|---|---|
| Rating | Rating Rating image, 4.0 out of 5 stars. 4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
| Commissions | Commissions | Commissions |
| Account Minimum | Account Minimum | Account Minimum |
| Next Steps | Open Account for TradeStation Read Full Review | Open Account for E*TRADE Read Full Review |
TradeStation vs. E*TRADE: Commissions & fees
Both E*TRADE and TradeStation are surprisingly cheap. That is, unless you want to trade mutual funds.
Neither broker charges commissions for stocks or ETFs. But whereas mutual fund trades are free on E*TRADE, TradeStation charges a $14.95 commission. While that's pretty standard for mutual fund trading (many brokers, in fact, charge more), it's still a big fee compared to $0.
With options trading, TradeStation has a cheaper per-contract fee, but E*TRADE isn't too far behind: $0.60 vs. $0.65. And if you make at least 30 trades a quarter, E*TRADE's per-contract fee becomes cheaper than TradeStation ($0.50), unless you have the TS SELECT plan, which would then make them both equal.
| TradeStation | E*TRADE | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0 + $0.60 per contract ($0.50 per contract with TS SELECT) | $0 + $0.65 per contract, or $0.50 with 30 or more trades per quarter |
| Crypto commissions | $0 | N/A |
| Mutual fund commissions | $14.95 | $0 |
| Account transfer fee | $125 | $75 (full transfer) |
| Account maintenance fee | $0 but charges $10 inactivity fee | $0 |
Data source: TradeStation and E*TRADE.
TradeStation vs. E*TRADE: Investments available
TradeStation has fewer investment choices than E*TRADE. For example, you can buy brokered CDs through E*TRADE and it offers 6,000 mutual funds. TradeStation doesn't sell brokered CDs, and its mutual fund selection is only a third of E*TRADE's.
As of writing this, neither E*TRADE nor TradeStation offer direct exposure to cryptocurrencies. While this could change in the future for E*TRADE, it appears as if TradeStation has exited the crypto market indefinitely. On Feb. 22, 2024, it discontinued its crypto services. If you're interested in direct exposure to crypto, you'll have to buy it through a crypto exchange or app.
| TradeStation | E*TRADE | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | No |
| Options | Yes | Yes |
| Mutual funds | More than 2,000 | More than 6,000 |
| CDs | No | Yes |
| Bonds | Yes | Yes |
| Futures | Yes | Yes |
| Crypto | No | No |
| Currencies | No | No |
Data source: TradeStation and E*TRADE.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
| Account | Fees | Account Minimum | |
|---|---|---|---|
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, $0 for options contracts | $0 | Open Account for SoFi Active Investing |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold | $0 | Open Account for Robinhood |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Commission-free; other fees apply | $0 | Open Account for E*TRADE |
TradeStation vs. E*TRADE: Account types available
When it comes to account types, E*TRADE again trumps TradeStation. That's mainly because of Morgan Stanley's takeover of E*TRADE, which has made the former's checking and savings accounts accessible to those with an E*TRADE account. It also offers robo-advising, which is missing from TradeStation.
| TradeStation | E*TRADE | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | No | Yes |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | SEP, SIMPLE | SEP |
| Custodial | UGMA/UTMA | Yes |
| Checking | No | Yes |
| Savings | No | Yes |
| Credit card | No | Yes |
Data source: TradeStation and E*TRADE.
TradeStation vs. E*TRADE: Mobile app and trading platforms
Both TradeStation and E*TRADE have powerful trading platforms and apps with robust tools, research, and market commentary. In a head-on-head comparison, you're basically watching Godzilla wrestle with King Kong.
TradeStation has a feature-rich trading platform known for its complex charting capabilities. For example, you can overlay over 120 technical indicators to help you analyze market volatility or give you a sense of how the market might be trending. These tools might be overwhelming for beginners, but for advanced and experienced investors, it can give you multiple ways to analyze an investment.
E*TRADE isn't far behind. Its web-based platform has impressive charting capabilities and highly rated options trading features. It's also highly customizable, too, allowing you to modify charts in whatever way helps you spot potential opportunities. It also has numerous screeners for stocks, ETFs, mutual funds, and option trading.
Final take
All in all, these are two goliath platforms with a lot of firepower in their tools and charting capabilities. However, if you want to trade mutual funds, or you're interested in robo-advising, E*TRADE may be better suited for you. Otherwise, you might want to watch videos of both platforms in action -- neither one offers a free trial -- or take a look at other top brokerages to see if another one better suits your needs.
Open Account for TradeStation
OnTradeStation'sSecure Website.
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- TradeStation
- E*TRADE
Ratings Methodology
Our Rating:
Rating image, 4.0 out of 5 stars.
4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
A discount broker that's designed for active traders and cost-sensitive investors. You can often spend less than with other platforms.
Read Full Review
Fees:
$0 stock trades
Account Minimum:
$0
Special Offer
New accounts with qualifying assets earn $50 to $5,000 using code FOOLAFYJ
Open Account for TradeStation
OnTradeStation'sSecure Website.
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.
Read Full Review
Fees:
Commission-free; other fees apply
Account Minimum:
$0
Special OfferOpen a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash bonus of up to $1,000, depending on the size of your deposit. Offer good for one use per customer, on a single account.
Open and fund and get up to $1,000
Open Account for E*TRADE
OnE*TRADE'sSecure Website.
FAQs
You'll pay an annual fee of 0.30% of your initial investment, for a minimum investment of $500.
There is no account service fee for TS Select plan holders. Per-trade, per-share plans charge $149.95 per month unless the account meets certain minimum activity requirements, which include:
- 10 round-turn futures and/or futures options contracts, or
- 50 options contracts traded, or
- 5,000 shares traded, or
- $100,000 account balance
