Interactive Brokers vs. TradeStation

If you are reading this article, you’re likely having trouble deciding whether TradeStation or Interactive Brokers is the better Forex trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.

In this Interactive Brokers vs. TradeStation review, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:

• Features and Platforms
• Available Markets
• Typical Spreads and Fees
• Security and Trust
• Interactive Brokers vs. TradeStation - Verdict

Headquarters	United States	United States
Tier 1 Regulator(s)?
Owned by Public Company?
Year Established	1982	1978
Execution Type(s)	ECN/STP, Market Maker	ECN/STP, No Dealing Desk
Minimum Deposit	N/A	$0
Negative Balance Protection	N/A
Trading Platform(s)	Proprietary platform	Proprietary platform
Average Trading Cost EUR/USD	N/A	0.2 pips ($2.00)
Average Trading Cost GBP/USD	N/A	0.4 pips ($4.00)
Average Trading Cost WTI Crude Oil	N/A	$0.01
Average Trading Cost Gold	N/A	$0.17
Minimum Commission for Forex	N/A	$1.00 - $2.00
Islamic Account
Signals
US Persons Accepted?
Managed Accounts
	Get Started	Get Started

Features and Platforms

MT4
MT5
MT4/MT5 Add-Ons	N/A
cTrader
Proprietary Platform
Automated Trading
Social/Copy Trading	N/A
DOM?
Guaranteed Stop Loss
Scalping
Hedging
One-Click Trading
OCO Orders
Interest on Margin
	Get Started	Get Started

TradeStation enjoys continued growth behind its innovative proprietary trading platform, supported by its Trading App Store. While it remains competitive, it cannot compete with Interactive Brokers, which presents a superior proprietary trading platform, and its Investor’s Marketplace features 1,500+ services. Both brokers support algorithmic trading and offer quality education to beginner traders. Interactive Brokers takes the lead with its extensive research. Cryptocurrency traders may earn up to 6% annual interest on eligible cryptocurrency assets at TradeStation. The core trading environment at both brokers presents identical features, with Interactive Brokers on top.

Available Markets

Currency Pairs	N/A
Cryptocurrencies	N/A
Commodities
Crude Oil
Gold
Metals
Equity Indices
Stocks (non-CFDs)
Bonds	N/A
ETFs
Options
Futures
Synthetics
	Get Started	Get Started

Clients at TradeStation have access to stocks, ETFs, IPOs, options, futures, futures options, cryptocurrencies, mutual funds, and bonds. One asset class notably missing is Forex trading. Therefore, TradeStation is a choice for equity portfolios and cryptocurrency investors. Interactive Brokers presents investors and traders with 135 markets across 33 countries in 23 currencies, one of the most in-depth choices of trading instruments industry wide. Neither broker maintains a detailed asset list, but TradeStation and Interactive Brokers offer clients a well-balanced choice of available markets. Interactive Brokers trumps TradeStation, as the overall asset selection beats in quantity and quality.

Typical Spreads and Fees

Average Trading Cost EUR/USD	N/A	0.2 pips ($2.00)
Average Trading Cost GBP/USD	N/A	0.4 pips ($4.00)
Average Trading Cost WTI Crude Oil	N/A	$0.01
Average Trading Cost Gold	N/A	$0.17
Average Trading Cost Bitcoin	N/A	$0.25
Minimum Commission for Forex	N/A	$1.00 - $2.00
Withdrawal Fee	N/A
	Get Started	Get Started

Equity and ETF trading in the TradeStation TS Select account remains commission-free. Stock options fees are $0.60 per contract, futures and micro futures $1.50 and $0.50 per side, respectively, and futures options $1.50. Traders in the TS Go pay an extra $10.00 fee for stocks and options and $1.40 for futures trading. Interactive Brokers features one of the best commission-based cost structures. Forex traders pay a spread of 0.1 pips for a commission of $2.00 per order or $3.00 per lot, and equity traders a commission of 0.05%. Margin trading also remains cheaper at Interactive Brokers.

Security and Trust

Country of the Regulator	United States	United Kingdom, United States
Regulatory License Number	39473, 8-48711	36418, 8-47257, 208159
Regulatory Tier	1	1, 1
	Get Started	Get Started

The ultimate regulator of TradeStation and Interactive Brokers is the US Securities and Exchange Commission (SEC). Both brokers are also members of the Financial Industry Regulatory Authority (FINRA), the self-regulatory organization with SEC oversight. Interactive Brokers also has oversight from the Commodity Futures Trading Commission (CFTC) and trusted international regulators. The Securities Investor Protection Corporation (SIPC) protects clients up to $500,000 per net equity or $250,000 for cash claims at both. TradeStation owner Monex Group is a publicly listed company in Japan, while Interactive Brokers remains listed in the US. Both brokers remain equally secure and trustworthy.

TradeStation vs Interactive Brokers – Verdict

Both brokers present investors and traders with an excellent core trading environment and the ultimate decision concerning the better choice between TradeStation and Interactive Brokers boils down to individual preferences. While similarities exist, Interactive Brokers trumps TradeStation across the board. Its proprietary trading platform and Investor’s Marketplace remain superior to TradeStation and its Trading App Store. The asset selection and trading costs are competitive at both, while Interactive Brokers pulls ahead once again. Quality market research and an excellent educational platform are available at TradeStation and Interactive Brokers alike, but the latter also maintains managed portfolios. The owner of TradeStation, Japanese financial behemoth Monex Group, is a publicly listed company in Japan, and Interactive Brokers is a US-listed company on the NASDAQ. Both maintain an equally secure and trustworthy trading environment. Active traders, especially those requiring margin portfolios, receive better overall trading conditions at Interactive Brokers.

Both brokers present clients with a competitive trading environment, but Interactive Brokers bests TradeStation across the board in the quantity and quality of its product and services portfolio.

The monthly trading costs depend on the requirements of the individual. There are numerous costs for market data packages, with discounts for active traders. Not all traders require them, and most retail traders will pay no monthly fees.

You might also be interested in reviewing the below broker comparisons:

• TradeStation vs eToro
• TradeStation vs AmeriTrade
• Interactive Brokers vs OandaFX
• Interactive Brokers vs QuesTrade

Read full TradeStation Review

Read full Interactive Brokers Review