TradeStation Analysis and Trading Tools

TradeStation offers a comprehensive suite of analysis and trading tools that can help you make informed investment decisions.

The platform's Chart Analysis tool allows you to apply technical indicators and overlays to charts, providing valuable insights into market trends and patterns.

TradeStation's Backtesting feature enables you to test trading strategies on historical data, helping you refine and optimize your approach.

With TradeStation's Scanner, you can quickly identify trading opportunities based on specific criteria, such as moving averages or RSI levels.

TradeStation's Alerts system allows you to set up notifications for specific market conditions, ensuring you stay on top of trading opportunities.

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TradeStation was founded in 1982 by brothers William and Rafael Cruz, initially as Omega Research, Inc.

The company started out by developing next-generation trading tools, offering charting services and direct broker connections for executing trades across various markets.

TradeStation's flagship platform was launched in 1999, providing high-volume traders with advanced tools like excellent charting and extensive past market data for analysis.

TradeStation has continued to evolve, welcoming newer traders and investors with smaller account sizes while staying true to its core audience.

Today, TradeStation provides access to trading in over 150 markets, 34 countries, and 27 currencies, delivering custody, clearing, execution, and billing on behalf of registered advisors.

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TradeStation is a widely used online brokerage platform that supports trading in multiple asset classes.

It's available in various formats, including a desktop application, web-based application, and mobile apps for iPhone and Android.

You can trade stocks, ETFs, options, futures, and options on futures with TradeStation.

Bonds, mutual funds, and OTC securities are also supported by the platform.

TradeStation's versatility makes it a popular choice among traders.

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TradeStation offers customers free news from multiple sources, with Benzinga appearing to be a primary source for news provided on the platform.

This feature can be customized by the user, allowing them to filter based on individual stocks or news types.

Users can choose to view news specific to the stocks they're interested in, or browse through various news types to stay informed.

The news feature is a valuable tool for traders and investors, helping them stay up-to-date on market developments and trends.

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TradeStation has its roots in the early days of online trading, founded in 1982 by Ralph Acampora, a well-known market analyst. The company was initially called Omega Research.

The first version of TradeStation, called Omega, was released in 1991 and was a simple but powerful charting and analysis program. It quickly gained popularity among traders.

TradeStation's user-friendly interface made it easy for users to access a wide range of technical indicators and analysis tools. This allowed traders to make more informed decisions.

In 2007, TradeStation merged with Sierra Chart, a company that specialized in advanced charting and analysis tools. This acquisition expanded TradeStation's capabilities and solidified its position in the market.

Today, TradeStation is a leading provider of trading and analysis software, used by traders of all levels.

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TradeStation Group, Inc. is a complex organization with multiple subsidiaries. Its principal operating subsidiaries are TradeStation Securities, Inc. and TradeStation Technologies, Inc.

TradeStation Securities, Inc. is a member of several prestigious organizations, including the New York Stock Exchange (NYSE) and the National Futures Association (NFA).

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The company's technology subsidiary, TradeStation Technologies, Inc., develops and offers strategy trading software tools and subscription services. This subsidiary plays a crucial role in the company's operations.

TradeStation Securities, Inc. is also a licensed securities broker-dealer and a registered futures commission merchant. This allows the company to offer a wide range of financial services to its clients.

TradeStation Group is a wholly owned subsidiary of Monex Group, Inc., one of Japan's largest online financial services providers. This partnership has enabled TradeStation to expand its services globally.

Monex Group, Inc. has several subsidiaries, including Monex, Inc. in Japan, which provides financial services to nearly one million individual investors. This is a significant achievement for the company.

Monex Group's services also cover M&A advisory, debt and equity underwriting, asset management focusing on alternative investments, investment education, and other investment banking functions in Japan.

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TradeStation's analysis and trading platform is a professional electronic trading platform designed for financial market traders. It provides extensive functionality for receiving real-time data, displaying charts, entering orders, and managing outstanding orders and market positions.

The platform comes with a large number of pre-defined indicators, strategy components, and analysis tools, but individuals can also modify and customize existing indicators and strategies, as well as create their own indicators and strategies using TradeStation's proprietary object-oriented EasyLanguage programming language.

TradeStation supports the development, testing, optimizing, and automation of all aspects of trading. Trading strategies can be back-tested and refined against historical data in simulated trading before being traded "live". TradeStation can be used either as a research and testing tool or as a trading platform.

Here are some of the key features of TradeStation's analysis and trading platform:

The platform is designed to be easy to navigate and use intuitively, with a series of built-in apps that users can choose to utilize or not. TradeStation's apps include Chart Analysis, Hot List, Radar Screen, Matrix, Time and Sales, TradeManager, and OptionStation Pro, to name a few.

In backtests and QuantConnect Paper Trading, we fill market orders immediately and completely.

Market orders are filled according to what's available in the order book if the quantity exceeds the available amount at the top of the order book in live trading.

In live trading, partial fills occur when the quantity of your market orders exceeds the quantity available at the top of the order book.

For a more detailed explanation of how we model TradeStation order fills, you can refer to the "Fills" section.

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TradeStation's stock and ETF screeners are a powerful tool for traders. They can scan thousands of issues on over 175 technical and fundamental criteria.

The Scanner app is a great option, allowing users to quickly sort through large amounts of data. TradeStation's RadarScreen is another useful tool, enabling users to sort stocks and ETFs based on specific indicators.

RadarScreen can also provide alerts on hundreds of symbols at the same time, keeping traders informed and up-to-date. TradeStation's hotlist is another valuable feature, highlighting technically significant issues like breaking 52-week highs or lows.

TradeStation's screeners for stocks and ETFs are highly regarded, making it easier to find potential trading opportunities.

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TradeStation's charting functionality is excellent, offering many different technical studies available in real-time.

Traders can trade directly from charts on the desktop or mobile platform by moving the mouse on the background of a chart.

The charting toolbar is easy to use, allowing users to quickly change time frames, drawing tools, and more.

Users can also drag and drop target levels directly to charts.

TradeStation's charting integrates very well with the order entry system.

TradeStation's charting is one of the best online broker charting systems available.

Portfolio analysis is a crucial aspect of trading and investing. It helps you evaluate the performance of your portfolio and make informed decisions.

Portfolio Maestro, a free feature of the TradeStation platform, allows you to backtest and examine the performance of a group of strategies applied to a basket of symbols in a portfolio. This feature is particularly useful for rebalancing the allocation of your portfolio assets and optimizing your portfolio's performance.

PortfolioAnalyst, offered by Interactive Brokers, provides a comprehensive portfolio management system. It allows investors to consolidate, track, and analyze their portfolios in real-time, with advanced reporting and global support.

Interactive Brokers' ability to link external accounts and provide an overall financial picture gives the company a clear advantage in portfolio analysis. This feature is particularly useful for getting an overall comprehensive picture of your financial situation.

IBKR's PortfolioAnalyst also offers powerful on-the-go analytics, benchmarks, and risk metrics. This information can help you make informed decisions about your portfolio.

Here are the trading hours for stocks and options:

TradeStation offers a variety of tradable assets, including stocks, options, futures, forex, and cryptocurrencies.

They offer over 400 stocks, including popular ones like Apple and Amazon, as well as international stocks.

Their options platform allows for trading of options on stocks, ETFs, and indexes.

TradeStation's futures platform offers trading of futures contracts on popular indices, commodities, and currencies.

Their forex platform provides trading of major and minor currency pairs.

TradeStation also allows trading of cryptocurrencies, including Bitcoin and Ethereum.

Their platforms are available on desktop, web, and mobile devices.

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TradeStation offers extensive functionality for receiving real-time data, displaying charts, and managing outstanding orders and market positions.

TradeStation's proprietary object-oriented EasyLanguage programming language allows individuals to modify and customize existing indicators and strategies, or create their own indicators and strategies.

Users can access hundreds of TradeStation-compatible products created by independent third-party developers through the TradeStation TradingApp Store.

TradeStation supports the development, testing, optimizing, and automation of all aspects of trading, including back-testing and refining trading strategies against historical data in simulated trading.

TradeStation's order routing technology improved price per share by an average of $1.99 per share filled for all market equity orders, and $5.0786 per order for options.

TradeStation offers a trading journal, but does not support dividend reinvestment plans (DRIPs) or fractional share trading.

TradeStation's intelligent order routing technology automatically chooses the best route for you when you place an order, ensuring you receive the best price available.

TradeStation offers a trading simulator tool, allowing investors to try out investment strategies and ideas using simulated virtual currency.

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TradeStation supports multiple order types, including market, limit, stop market, stop limit, and trailing stops orders, as well as one-cancels-the-other (OCO), and order-sends-order (OSO).

These order types are available on all TradeStation platforms, giving users a high degree of flexibility and control over their trades.

The specific order types available vary by asset class, but TradeStation's integration supports market, limit, stop market, stop limit, market on open, market on close, combo market, and combo limit orders for equity, equity options, index options, and futures.

Here's a breakdown of the available order types by asset class:

Scripts are a powerful feature in TradeStation, allowing you to create and customize your own trading strategies.

You can use scripts to analyze price direction, such as with the MACD, which is a bullish signal when the oscillator is positive, and a bearish signal when it's falling.

Stochastics are also used in scripts as an overbought/oversold indicator, helping you identify potential price reversals.

Moving average crosses are another common signal used in scripts, where a faster-moving average crossing above a slower-moving line can be a bullish signal.

The Relative Strength Index (RSI) is also used in scripts to measure overbought and oversold conditions, and can be a useful tool for identifying trend changes.

Scripts can be used to anticipate trend reversals, such as by counting the number of bars since a moving average cross, or by using the RSI to identify overbought conditions.

The passage of time can also be a useful indicator of a trend reversal, as bull markets don't last forever.

TradeStation's EasyLanguage programming language makes it easy to create and customize your own scripts, and you can even access hundreds of pre-defined indicators and strategies through the TradeStation TradingApp Store.

Scripts can be back-tested and refined against historical data in simulated trading, allowing you to fine-tune your strategy before trading it live.

By using scripts, you can automate your trading strategies and make more informed decisions based on real-time data.

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TradeStation's Trading Idea Generator is a powerful tool for identifying potential trading opportunities.

The platform's various filtering and lookup criteria can help traders narrow down their search and find relevant trades.

TradeStation customers can also access VectorVest, which provides simple buy, sell, or hold ratings for over 16,000 stocks and ETFs.

This feature is available via API directly from the TradeStation website, but it comes with a fee.

TradeStation is easy to get up and running on, and the account opening process can be completed in a single day.

The platform offers multiple platforms, including its flagship TradeStation 10 desktop platform, a web-based platform, and a full-featured mobile app for iOS and Android. All platforms provide real-time news and streaming data, support drawing tools on charts, and allow the creation of custom watchlists.

TradeStation's platforms are designed to be relatively straightforward to navigate, even though the platform has many bells and whistles.

TradeStation's usability is designed with the day trader in mind. The platform's complexity may be an issue for certain traders.

The TradeStation API supports various Time In Force instructions, making it easier to manage trades. These instructions include Day, GoodTilCanceled, and GoodTilDate.

TradeStation offers a professional trading platform with excellent charting and order entry tools. This makes it a great choice for traders who want to automate their trades based on technical and fundamental factors.

Here are the Time In Force instructions supported by the TradeStation API:

Slippage is a reality in live trading, but it's not a concern in backtesting or paper trading. Orders through TradeStation may experience slippage in live trading.

TradeStation models their slippage in a way that's worth checking out, so be sure to see their Slippage page for more information.

TradeStation's usability is one of its strongest features. The account opening process can be completed in a single day, making it easy to get started.

The company offers multiple platforms, including a desktop platform, a web-based platform, and a full-featured mobile app for both iOS and Android. These platforms provide real-time news and streaming data, support drawing tools on charts, and allow the creation of custom watchlists.

Navigating the various platforms is relatively straightforward, even with many bells and whistles. Investors can view charts with real-time streaming data and news, add technical indicators, and create custom watchlists, regardless of the platform they use.

TradeStation's platforms offer unrivaled access to 150 markets in 200 countries, with support for trading stocks, ETFs, options, futures, currencies, bonds, mutual funds, and cryptocurrencies.

TradeStation takes security seriously, offering a range of features to protect your account. Two-factor authentication, including biometric fingerprint or facial recognition for mobile apps, is available to add an extra layer of security.

The platform also carries Lloyd’s of London insurance, which goes beyond SIPC insurance protection, insuring each account up to $24.5 million, subject to a $900,000 per account maximum for cash, with an aggregate firm limit of $200 million.

TradeStation offers account monitoring and alerts when changes are made to account profiles, as well as encrypted communications and website.

Here are some of the key security features offered by TradeStation:

TradeStation's legitimacy is a valid concern for some investors.

The company has made significant efforts to improve its platforms' user-friendliness, making them more accessible to a broader range of customers.

However, the initial complexity of TradeStation's platforms may still make it less ideal for beginning traders and investors.

TradeStation's educational materials, while improved, are not as strong as those available at other online brokerage platforms.

Handling Splits can be a bit of a challenge, but fortunately, our system automatically adjusts certain properties of your orders to reflect a stock split.

If you're using raw data normalization and you have active orders with a limit, stop, or trigger price in the market for a US Equity when a stock split occurs, the following properties of your orders automatically adjust: Quantity, Limit price, Stop price, and Trigger price.

These adjustments ensure that your orders remain active and effective even after a stock split.

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TradeStation and Interactive Brokers take the security of their users' accounts very seriously. Both companies have implemented robust security measures to protect against unauthorized access.

Two-factor authentication is a key feature of both platforms, requiring users to provide a second form of verification in addition to their password. This can be done through biometric login on mobile devices, such as face or fingerprint recognition.

Security features include encrypted communications and websites, as well as advanced firewalls to prevent unauthorized access. TradeStation's websites and applications use 256-bit data encryption, while Interactive Brokers' internet-facing servers are protected by firewalls and other security devices.

Both companies offer excess SIPC insurance, which provides additional protection beyond the standard SIPC coverage. TradeStation's excess SIPC coverage has an aggregate limit of $200 million, while Interactive Brokers' has an aggregate limit of $30 million.

Here's a summary of the security features offered by both platforms:

In addition to these security features, both companies offer account monitoring and alerts when changes are made to account profiles. This helps users stay on top of their accounts and detect any suspicious activity.

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TradeStation offers a variety of account types to suit different trading styles and needs.

You can choose from a cash account, margin account, or an IRA account, each with its own set of features and benefits. The minimum deposit for a TradeStation account is $1,000, which is a relatively low barrier to entry.

TradeStation charges a base commission of $0.01 per share, with a minimum of $1.50 per trade. This fee structure is competitive with other online brokerages.

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TradeStation offers a range of account amenities that make trading easier and more efficient.

One of the key features is the ability to access research information on the platform, which includes fundamental and technical data that can be used for trading.

TradeStation also provides a variety of research tools, such as screeners and charting, that can help traders make informed decisions.

These tools are designed to be user-friendly, making it easy for traders to navigate and find the information they need.

The platform's news feed is another valuable resource, providing up-to-date information on market trends and events.

TradeStation's calculators are also a useful feature, allowing traders to quickly and easily calculate key metrics such as profit and loss.

TradeStation's fees can be a bit complicated, but let's break it down. The company offers a hybrid approach to its cost structure, which means you'll need to pay attention to the fees for trading and services.

One of the main fees to consider is the trading cost. For U.S. stocks, ETFs, and OTC stocks, TradeStation charges zero commission for up to 10,000 shares traded if the trading price is above $1.00 per share. If more than 10,000 shares are traded under this plan, there is a commission of $0.005 per share, with no maximum.

Options trading also comes with a fee of $0.60 per option for stocks and ETFs, plus an additional $0.50 per contract for directly routed orders. Futures trading costs $1.50 per contract, per side, while micro futures cost $0.50 per contract, per side.

Mutual funds and fixed income securities have separate fees, with mutual funds costing $14.95 per trade and fixed income securities costing $50 per trade for U.S. Treasury securities or $14.95 per trade for corporate and municipal bonds, plus $5 per bond.

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Here's a breakdown of the fees for different market vehicles at TradeStation:

In addition to trading fees, TradeStation also charges miscellaneous fees, including an outgoing wire fee of $25, an outgoing account transfer fee of $125, and an early assignment/early exercises fee of $1.50 per contract, with a $5.95 minimum.

It's worth noting that TradeStation's fees can be negotiable for accounts over $500,000, and the company offers customized pricing plans for high-volume traders.

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TradeStation generates revenue through various methods, some of which benefit customers as well. Here are the ways TradeStation makes money from and for you:

TradeStation earns interest on cash by investing excess customer balances at a higher rate than it pays customers, who receive just 0.15% interest.

TradeStation also generates income through payment for order flow (PFOF), which occurs when customers don't specify routing instructions for their trades. This allows TradeStation to earn commission revenue.

One way TradeStation improves the trading experience is by offering price improvement, which is the difference between the price at which the order was executed and the price at which the customer would have paid if they had executed the trade themselves. In the first quarter of 2024, TradeStation improved the price per share by an average of $1.99 for all market equity orders.

TradeStation offers a stock loan program, which allows investors to lend their stocks to others with short positions. If you participate in this program, you'll receive 30% of the revenue generated, while TradeStation keeps 70%.

TradeStation charges commissions to customers who exceed certain trading sizes or want to route their own orders. It also generates commissions on futures, options on futures, options on stocks and ETFs, bonds, and mutual fund transactions.

TradeStation offers a range of mobile and account types to suit different needs and preferences.

You can access your account on the go with TradeStation's mobile app, available for both iOS and Android devices. The app offers a streamlined trading experience, allowing you to monitor your positions, check market news, and execute trades from your mobile device.

TradeStation provides three main account types: paper trading, live trading, and managed accounts.

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TradeStation's mobile app is available for both iOS and Android phones and supports trading in stocks, options, futures, and options on futures.

The mobile app also provides streaming quotes and news by Benzinga, and supports biometric screening by fingerprint or facial recognition.

You can share watchlists across different platforms, making it easy to keep track of your investments on the go.

The home screen can be customized to show the information you want to see, such as balances, positions, hotlists, a watchlist, or alerts.

Clicking on any symbol allows you to see charts and access order entries directly from charts or by clicking on the green trading button at the top of the screen.

Both TradeStation and Interactive Brokers offer similar mobile experiences for active traders, with comparable trading options, order executions, and research capacity.

However, Interactive Brokers offers additional apps for international trading and ESG investing, giving it an edge in this category.

TradeStation offers a variety of account types to suit different needs and preferences. You can open an individual account or a joint account with right of survivorship, which means that if one account holder passes away, the remaining account holder will have full control over the account.

TradeStation also supports joint tenants in common, custodial accounts, and trusts. These account types can be beneficial for families or businesses with multiple owners.

Here is a list of account types available on TradeStation:

TradeStation also offers cash and margin accounts, which can be set up through the account creation wizard on their website.

TradeStation's user interface is relatively intuitive, making it easy for beginners to get started with technical analysis and trading. However, some users may find the platform's layout overwhelming at first.

The platform's advanced features, such as its automated trading system and backtesting capabilities, are particularly useful for experienced traders. For example, TradeStation's EasyLanguage programming language allows users to create custom trading strategies.

TradeStation's customer support is also noteworthy, with multiple channels available for assistance, including phone, email, and live chat. This level of support is a significant advantage for traders who may need help navigating the platform or resolving issues.

If you're looking for alternative brokers to TradeStation, let's take a look at Interactive Brokers and Charles Schwab. Interactive Brokers has a 4.7-star rating, requires no minimum deposit, and charges $0.00 for stock trades.

Interactive Brokers also offers six option legs, 19,000+ no-load mutual funds, and fractional share trading of stocks. Additionally, it provides new spot Bitcoin and Ethereum ETFs.

Charles Schwab, on the other hand, has the same 4.7-star rating and no minimum deposit requirement. It charges $0.00 for stock trades and $0.65 per contract options.

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In the end, both TradeStation and Interactive Brokers are geared towards active traders, but they cater to different needs. TradeStation is a pure technical trading platform.

Interactive Brokers edges out TradeStation in many areas, thanks to its all-in-one platform that allows users to link external accounts for a more comprehensive portfolio analysis. This feature is a game-changer for traders who want a complete picture of their investments.

TradeStation, on the other hand, outperforms Interactive Brokers in trade automation and backtesting. For traders who rely heavily on these features, TradeStation is the better choice.

Interactive Brokers offers an unparalleled range of markets and tradable assets, with over 90 order types and the ability to buy fractional shares. This makes it a top choice for sophisticated traders who want to diversify their portfolios.

TradeStation's focus on technical trading is unmatched, but Interactive Brokers' all-in-one platform and vast educational resources give it a slight edge.

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TradeStation has a lot to offer, but it's not without its drawbacks. Here are the pros and cons to consider.

TradeStation's professional trading platform is a major advantage, allowing for backtesting, automation, and simulation. This means you can test and refine your trading strategies without risking real money.

The platform's good trade execution and order routing control are also notable benefits. This can help you get the best possible prices for your trades.

Here are some key pros and cons to consider:

On the other hand, TradeStation can be intimidating to new users. It's also worth noting that the platform lacks more advanced account features and no-transaction mutual funds. Additionally, there's no cryptocurrency trading available. And if you have excess cash, you might be disappointed to know that the return is paltry.

TradeStation's professional trading platform is a game-changer for serious traders. It features excellent order routing, allowing customers to route their own orders, and advanced orders, all on a very intuitive platform.

TradeStation's backtesting, automation, and simulation capabilities are top-notch. It was one of the earliest brokers to offer backtesting strategies, and you can automate trading strategies using over 175 technical and fundamental criteria.

TradeStation's order routing system is popular with high-volume traders, offering good execution and control over orders. This is especially useful for traders who need to manage large volumes of trades.

TradeStation's pricing is competitive, with commission-free stock and ETF trading, and reasonable rates and fees for higher-volume traders. Options prices are still $0.60 per contract, which is a reasonable fee for many traders.

Here are some key features of TradeStation's professional trading platform:

TradeStation's platform can be overwhelming for new users, requiring a learning curve to set up and use the system.

The good news is that the system is still pretty intuitive, especially for basic trading.

One major drawback is that TradeStation is not a great option for mutual fund investing, as it's geared more towards traders.

This means that there are no no-fee funds available, and trades need to be made with a broker.

Cryptocurrency trading is also no longer supported by TradeStation, following its settlement with the U.S. Securities and Exchange Commission in February 2024.

If you're looking for advanced account features, you'll be disappointed to know that TradeStation lacks features like dividend reinvestment programs (DRIPs), fractional share trading, and cash management features.

Additionally, TradeStation pays a paltry 0.15% interest on cash balances of $100,000 or more, which is low compared to what other brokers offer.

Here's a summary of the key cons to keep in mind: