October 3, 2019
Is TradeStation a reliable brokerage company for beginners or scammers?

TradeStation is a recognized and experienced American broker with more than 35 years of experience in the brokerage business. Its offices are located in the CIS countries and the European Union. Russian users cannot create an account on TradeStation. 

The company is regulated by world-renowned financial organizers. The broker states that its distinctive features are a great experience, reliability, transparency and a wide range of tools. 

Detailed description of the broker

The broker began operations in 1982 as a multifunctional platform providing access to the securities, futures and options market. 

The official office is located in the United States of America, and offices are located in many countries, such as Bulgaria, Czech Republic, Estonia, Lithuania, Latvia, Romania, Moldova, etc.

TradeStation offers many assets for trading, including currencies, stocks, commodities, indices, futures and bonds. The broker claims to be operating on the DMA model and offers low spreads, as well as charging commissions on certain trades. 

The broker's website is only available in English.

TradeStation License and Regulation

TradeStation is the property of an American eponymous company. In 2011, the broker was joined by IBFX Holdings, which led to the expansion of its capabilities and the provision of services on the world trade arena. 

The regulators of the brokerage company are three organizers: the National Futures Association, Securities Investor Protection Corporation and the Financial Industry Regulatory Authority. 

Complaints and claims from traders

The broker has been operating for more than 37 years, so it is not surprising that there are as many positive reviews. 

However, there are many claims from Russian-speaking users to the inconvenient English interface and the lack of Russian-language adaptation, which makes it difficult for the trader to work. Our review of tradeStation broker aims to test how efficient and honest the company is.

User reviews of the brokerage company

TradeStation is treated differently on the Internet: users' opinions are divided into two camps. Approximately 73% are positive and 27% are neutral and negative. 

Traders note the following advantages of the office: 

  • A high level of reliability
  • Timely withdrawals
  • The correct value of quotes
  • The ability to open joint accounts.

Among the disadvantages of the platform most often highlight:

  • Create a separate account for futures trading.
  • Higher trade commissions;
  • Suitable for more experienced players.

Also among the notable drawbacks are a limited number of options for input and withdrawal in comparison with other services.

TradeStation trading conditions

TradeStation trades currency pairs, indices and stocks, futures and options, ETFs and funds from 80 asset managers, as well as bonds and precious metals.

TradeStation uses U.S. bank transfers as a wired transfer. To deposit funds into an account, you need to transfer money from your bank account or send a check in the mail. 

Deposits with electronic checks, as well as credit and debit cards, Paypal services are not available. A domestic trader may be disappointed by this situation, but it is standard for American brokers. 

Spreads and commission from the broker

Spreads on currencies range from 1, maximum leverage 1: 50. The minimum rate is $1 and the minimum deposit is $2,000.

Account types

The broker provides many accounts based on the needs of the trader. There are two main accounts – cash (for trading shares, ETFs, bonds, funds, options, etc.), and futures. You can manage two accounts with one TradeStation window, but you still have to create a separate account to trade futures.

Also, such separate accounts are available for each type of asset:

  • It's individual.
  • It's collaborative.
  • A simple IRA
  • Corporate
  • For partnerships.
  • It's a trust.
  • For individual businesses
  • It's castodial.
  • Delivery or receipt against the transaction.

Individual accounts – traditional IRA, Roth IRA, Sep IRA – are available to American citizens.

Shares and bonuses from the broker

There are three tariff packages for customers: "per deal," "per share" and "unrelated." In each of them, the broker offers a fixed transaction price and additional privileges and bonuses. 

The most popular package is "for a bargain" and large volume traders often choose "unrelated." Before choosing a fare, it is best to contact the manager to clarify the conditions for receiving bonuses and privileges.

The broker also offers to take part in the partner program, which involves receiving passive income from the attracted client, who will open a new trading account.

Trade with TradeStation

The platform is mainly designed for experienced traders who know the product well and have made at least 100 trades before the creation of a TradeStation account.

The process of opening an account is quite complex, requiring a lot of time and additional collection of documents. For its clients, the brokerage company offers the creation of a global account, allowing to expand the set of tools and opportunities for trading. 

Trading platforms

TradeStation offers trading on the eponymous trading platform, which programmers have developed specifically for the broker. 

Traders can access a version for landline PCs, an online version without pre-installed, as well as a mobile version for Android and iOs users.

Only those users who have a verified account can start working with the trading terminal.

Learning for beginners

Everyone can be trained on the basis of training courses offered by TradeStation, as well as high-quality videos created specifically for traders with little experience in the market. 

All content is publicly available in English 

TradeStation Tech Support

Many users note the responsiveness and operational work of the technical support service, but there are also those who claim to be inactive. 

Conclusions 

A brokerage company has no way of being recognized as a scammer, despite having negative user reviews. A comprehensive review of the TradeStation broker found no significant irregularities or speculation in the platform.

It tends to have quite a large number of commissions and additional expenses, but, in general, the broker provides everything necessary for high-quality trading, and its services are controlled by international regulators.

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