Comparison of Interactive Brokers vs TradeStation
| Feature | Interactive Brokers | TradeStation |
| Commission for stocks and ETFs | 0.005% to 0.01% of trade value; $1 minimum per order | £0.01 per share, £1 minimum per order |
| Commission for futures | $0.25 per contract; varies by exchange | £1.50 per contract; varies by exchange |
| Commission for options | $0.25 per contract; varies by exchange | £1.50 per contract; varies by exchange |
| Commission for forex | Bid-ask spread; financing charges | Bid-ask spread |
| Trading platforms | Web, desktop, mobile, API | Web, desktop, mobile, API |
| Markets available | Stocks, ETFs, futures, options, forex, bonds, CFDs | Stocks, ETFs, futures, options |
| Minimum deposit | £0 for IBKR Lite account; £1,000 for IBKR Pro account | £500 |
| Account fees | £0 for IBKR Lite account; £10/month minimum commission for IBKR Pro account | £0 |
| Customer support | Phone, email, chat, knowledge base, local offices | Phone, email, chat, knowledge base |
Overall, both Interactive Brokers and TradeStation are well-regarded online brokers with competitive pricing and advanced trading platforms. Interactive Brokers is known for its low commissions and wide range of tradable assets, while TradeStation is popular among active traders for its customisable trading platform and extensive charting tools. Investors should consider their own needs and preferences before choosing between these two brokers.
Assets Offered
Interactive Brokers and TradeStation are known for their diverse offerings, but what sets them apart from each other?
TradeStation is an excellent choice for investors who want to trade stocks, ETFs, options, futures and IPOs from desktop or mobile platforms. However, it’s important to note that ‘equities account’ must be selected from the dropdown menu before placing trades since equities, crypto and futures trade on separate platforms.
On the other hand, Interactive Brokers allows investors to fund their accounts with one of 24 currencies and trade any product in a different currency. IBKR also supports trading in fractional shares which can be very useful when investing smaller amounts.
Customers can trade nearly 46k mutual funds through either platform; about 18k are no-transaction-fee funds. Additionally, both TradeStation and Interactive Brokers offer an all-in-one integrated account option for flexibility.
When comparing these two trading giants side by side it is clear that Interactive Brokers has an edge due to its expansive range of offerings.
| Criteria | Interactive Brokers | TradeStation |
| Short Sales | Yes | Yes |
| Assets Available to Trade on Website | Stocks, Mutual funds, ETFs, Bonds, CDs, Options, Futures, Currencies, Cryptocurrencies (asset only) | Stocks, Mutual Funds, ETFs, Options online, Fixed Income by phone |
| Assets Available to Trade on Desktop | Stocks, Mutual funds, ETFs, Bonds, CDs, Options, Futures, Currencies, Cryptocurrencies (asset only) | Stocks, Mutual Funds, ETFs, Options online, Fixed Income by phone |
| Assets Available to Trade on Mobile | Stocks, Mutual funds, ETFs, Bonds, CDs, Options, Futures, Currencies, Cryptocurrencies (asset only) | Stocks, Mutual Funds, ETFs, Options online, Fixed Income by phone |
| Max # of Options Legs | 6 | 2 |
| Robo Advisory | Yes | Yes |
| # of International Exchanges | 95 | 0 |
| Fractional Share Trading | Yes | No |
| Fractional Dividend Reinvestments | No | No |
Fees and Commissions
When it comes to choosing a brokerage firm, one of the most important factors that traders consider is cost. After all, every penny saved on fees and commissions can add up over time and significantly impact profitability. In this section, we’ll compare TradeStation and Interactive Brokers, in terms of their pricing structure.
TradeStation offers commission-free trading on all accounts, including stocks and ETFs with £0 commission.
On the other hand, Interactive Brokers’ commissions vary depending on the type of account and country from which the client is trading but offer low commissions with no added spreads or platform fees across 150 global markets.
So which broker wins when it comes to costs? It seems like Interactive Brokers takes home the prize due to lower starting ranges and margin rates compared to TradeStation’s higher percentages charged on smaller amounts.
Overall, both brokers have their own unique advantages when it comes to pricing structure but it ultimately depends on individual trader preferences based on their investment goals.
Regulation and Security
One of the most important elements within both brokers is the regulations and security measures. Both companies have implemented advanced security measures to ensure their clients’ investments are safe from unauthorised access.
TradeStation has recently implemented two-factor authentication through Auth0 Guardian app, Google Authenticator app, and SMS text messaging. This means that users must provide an additional layer of verification before accessing their accounts. Additionally, biometric login is available for mobile devices which allows users to log in using face or fingerprint recognition or passcode.
To protect websites and applications from cyber threats, TradeStation uses 256-bit data encryption technology which makes it virtually impossible for hackers to break into their systems. They also have advanced hardware and software firewalls in place to prevent unauthorised access.
Interactive Brokers (IBKR) requires all users to be two-factor authenticated as well as offering biometric login options on its mobile apps just like TradeStation does. Their internet-facing servers are protected from access through firewalls and/or other security devices while critical servers reside on isolated networks that have no direct internet access.
Overall, both TradeStation and Interactive Brokers have excellent security measures that go above industry standards. Investors can rest assured that their investments are safe and secure with these two companies.
Customer Support
When it comes to trading, having access to reliable customer service is crucial. Both TradeStation and Interactive Brokers (IBKR) offer various forms of client services and technical support, but how do they compare? Let’s take a closer look.
TradeStation provides phone or live chat support from Monday to Friday, 8 a.m. to 5 p.m. Eastern Time (ET). While this may not be ideal for traders who work outside these hours, there is access to TSbot – an online chat bot that can provide pre-programmed answers to basic questions.
On the other hand, IBKR offers 24-hour customer service each business day via regional Client Services Centers located throughout Europe, America and Asia. Quick Tips are also available through a chat bot designed to answer basic client questions with guidance towards resources if needed.
Both companies have limitations when it comes to inbound communications sent via commercial email due to security concerns; however, formal inquiries submitted via Message Center or email link on the support page are supported by both companies.
Lastly, IBKR offers live online chat services for current and prospective clients around-the-clock from Monday through Friday as well as Sundays.
Overall, while both companies offer some form of customer service around-the-clock; TradeStation’s scope of service during traditional business hours compared with IBKR providing broader coverage in this category makes them stand out differently depending on your needs as a trader.
Conclusion
Both Interactive Brokers and TradeStation are elite companies in the online brokerage world. While TradeStation is more of a pure technical trading platform, Interactive Brokers gives you the fundamental tools with the technical ones. When it comes to technical trading, they are very evenly matched. Ultimately, it comes down to what you’re looking for in a trading platform and your personal preferences
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