TradeStation vs Interactive Brokers 2024

Jeremy Biberdorf
By: Jeremy Biberdorf
 

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Investing in stocks can be an overwhelming experience, especially when choosing a suitable trading platform.

It is crucial to entrust your hard-earned money to a reputable platform that guarantees the security of your investments.

This is where TradeStation and Interactive Brokers come in. These two trading platforms have established themselves as top players in the industry, providing traders with various tools and features to help them make informed investment decisions.

In this TradeStation vs Interactive Brokers review, we’ll look closely at TradeStation and Interactive Brokers, comparing them to help you decide which platform is best for your trading needs.

TradeStation is Better For: Interactive Brokers is Better For:
US-based assetsCost-effective trading
Analysis & AnalyticsAdvanced Forex trading
Automated tradingVarious market

When deciding between TradeStation and Interactive Brokers, it’s crucial to comprehend the distinct features of each platform.

While both platforms are online brokers, ensure you evaluate each option. Take the time to thoroughly assess the platform and determine which aligns best with your investment objectives.

TradeStation Interactive Brokers
Service Type Stocks, bonds, and mutual funds Forex trading and stocks
Fees $50 annual fee (N/A if account minimums are met) Minimum of $2 per order
Best Use Buy-and-hold trading Advanced Forex trading
Current Promotion

More Info

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Modest Money Overall Rating
4.8 rating based on 5 ratings
4.4 rating based on 5 ratings

Factor 1: Features

Interactive Brokers Cut Across Various Markets

  • Interactive Brokers covers 135 markets
  • TradeStation offers stock, options, and cryptocurrency
  • Interactive Brokers uses a web-based client portal

TradeStation

tradestation.com website

TradeStation offers a range of unique features that cater to different types of traders, including active and advanced traders, futures, stock, and options traders, traders interested in cryptocurrency trading, and traders focusing on U.S. markets.

It also offers commission-free stock, ETF, options trades, high-standard trading platforms, sophisticated tools, extensive research, and an active trader community.

TradeStation also provides affordable trading fees and high-quality research tools, making it an excellent choice for traders who value education and research.

Interactive Brokers

interactivebrokers.com website

Interactive Brokers offers access to 135 market centers across 33 countries and 23 currencies, making it a global platform. While retail spot forex trading is unavailable for U.S. residents, Interactive Brokers’ web-based Client Portal is easy to use and includes integrated news headlines and an economic calendar.

Its Trader Workstation (TWS) desktop platform offers a vast array of advanced trading tools that seasoned traders and professionals will appreciate.

Interactive Brokers also offers highly sophisticated order-type configurations, which can be a boon for advanced forex trading strategies.

Factor 2: Trading style

TradeStation Caters to Various Trading Style

  • TradeStation trading style doesn’t support Forex trading
  • Interactive Brokers’ style is highly sophisticated and ideal for advanced Forex trading
  • TradeStation provides active traders with community

TradeStation

TradeStation caters to a wide range of trading styles, making it an ideal platform for forex traders engaging in advanced trading and buying-and-hold investing. The platform offers sophisticated tools suitable for traders who value education and research.

The platform also provides an active trader community, an added advantage for traders who require support and guidance. TradeStation’s affordable trading fees make it an excellent choice for traders looking for a platform that provides value for their money.

I recommend you also read our TradeStation vs Thinkorswim review to see how this provider compares against other platforms.

Interactive Brokers

Interactive Brokers is a platform that caters to various trading styles, but it’s an excellent choice for experienced investors who require a vast array of advanced trading tools. The platform offers highly sophisticated order type configurations, making it ideal for advanced forex trading strategies.

However, retail spot forex trading is not available to U.S. residents, and its web-based Client Portal has integrated news headlines and an economic calendar. Overall, Interactive Brokers is an excellent choice for traders who require a global platform and advanced trading tools.

Factor 3: Subscription

Interactive Brokers Offers a Flexible Fee

  • Interactive Brokers offers competitive fee options.
  • TradeStation platform is almost free
  • Interactive Brokers offer cost-effective Forex trading fee

TradeStation

TradeStation offers a free-to-use platform for both desktop and mobile users. However, to enhance their trading experience, users can opt for add-ons that come with a fee. For instance, Level II data is an add-on that costs $11 per month.

While per-contract fees range from $0.60 to $1.50, cryptocurrency trades are charged by percentage rather than a flat fee per trade. Traders should assess their trading style and need to determine which fee structure is more suitable for them.

Interactive Brokers

Interactive Brokers offers a competitive commission structure that caters to different activity levels. The commission per side starts at 0.00002 (0.2 basis points) of the U.S. dollar trade value, with a minimum of $2 per order ($4 per round turn).

However, exceptionally active traders can enjoy even lower rates, dropping to 0.08 basis points. Interactive Brokers’ transparent fee structure makes it easy for traders to understand the costs associated with their subscription.

TradeStation vs Interactive Brokers: Our Summary

TradeStation and Interactive Brokers are popular online brokers with unique features catering to different types of traders.

TradeStation offers an excellent platform for active and advanced traders, futures, stock, and options traders, traders interested in cryptocurrency trading, and traders focusing on U.S. markets.

Click here to check out TradeStation.

Learn More About TradeStation

Interactive Brokers offers a range of advantages over TradeStation that cater to different trading styles and requirements. Interactive Brokers is a global platform ideal for traders requiring a comprehensive solution.

It also offers a range of advanced trading tools and highly sophisticated order-type configurations suitable for advanced forex trading strategies.

You can open an Interactive Brokers account by clicking here.

Learn More About Interactive Brokers