Online brokerage services have existed for over 20 years. Trading investments today has never been cheaper. So while the race towards cheap trades (in some cases free) is happening, other functionality is becoming more important when selecting a stock broker.
For this review, I compare E*TRADE and TradeStation. Which one is better depends on your needs? So let's examine the major features first.
We've determined with online brokerages the most critical feature customers care about is the
cost per trade. The second most important feature is the minimum deposit, and the last is if the broker
offers mutual funds. Let's look at how E*TRADE and TradeStation
stack up against each other on these points.
To start, we will consider the minimum investment required for both applications. In
how much does one need to invest to use the service?
Both E*TRADE and TradeStation have the same minimum of $500. So they are equal in this requirement.
Next I'll consider cost per trade for both brokers.
Out of the two, TradeStation is cheaper per trade at $5.00 than E*TRADE at $6.95/trade.
Both E*TRADE and TradeStation offer mutual funds. So this feature isn't a clear difference between the stock brokers.
|Review||E*TRADE Review||TradeStation Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Amount of Deals|
|Stock Trades||$6.95/trade ($4.95/trade for 30+ trades/quarter)||$5.00/trade|
|Options Trades||$6.95/trade + $0.75/contract ($4.95 + $0.50/contract for 30+ trades/quarter)||$5.00/trade + $0.50/contract|
|Investment Types||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX, Futures||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, Futures|
|Access||Website, iOS App, Apple Watch, Android App||Website, iOS App, Android App|
|Broker Assisted Trade|
|No Fee ETFs|
|Sign Up||Sign Up|
E*TRADE, the grandaddy of online discount brokers, is still a good choice for active investors. Its platforms are easy to use, customer service is responsive, and trades execute quickly. However, there are now many less expensive rivals on the market.
With TradeStation, you can get access to an excellent platform for serious and active traders that was previously available only to brokers. The downsides are that it can be too expensive for some traders, and the service's mobile app is inferior to others.