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 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 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 | $0 per options trade, $0.60 per contract | Commission-free; other fees apply |
Account Minimum | $0 | $0 |
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.
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.
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 | |
---|---|---|---|
Featured Offer 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; $5 monthly for Robinhood Gold | $0 | Open Account for Robinhood |
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. | $0 per trade | $0 | Open Account for J.P. Morgan Self-Directed Investing |
Rating image, 5.0 out of 5 stars. 5.0/5Our 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. | $0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 | $0 | Open Account for Fidelity |
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
Our Brokerages Experts
By:Steven Porrello
Writer
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact CheckedEric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.