TradeStation vs. E*TRADE: Which Broker Is Right for You?

TradeStation and E*TRADE are both hugely popular brokers with powerful investment platforms that give investors a lot of vroom behind the wheel. And while they have many things in common -- like commission-free stock and ETFs -- they also have major differences that could make one more well-suited than the other for certain investors. Below, we'll delve deeper into these similarities and differences to help you decide which is the best platform for you.

Both E*TRADE and TradeStation are surprisingly cheap. That is, unless you want to trade mutual funds.

Neither broker charges commissions for stocks or ETFs. But whereas mutual fund trades are free on E*TRADE, TradeStation charges a $14.95 commission. While that's pretty standard for mutual fund trading (many brokers, in fact, charge more), it's still a big fee compared to $0.

With options trading, TradeStation has a cheaper per-contract fee, but E*TRADE isn't too far behind: $0.60 vs. $0.65. And if you make at least 30 trades a quarter, E*TRADE's per-contract fee becomes cheaper than TradeStation ($0.50), unless you have the TS SELECT plan, which would then make them both equal.

TradeStation has fewer investment choices than E*TRADE. For example, you can buy brokered CDs through E*TRADE and it offers 6,000 mutual funds. TradeStation doesn't sell brokered CDs, and its mutual fund selection is only a third of E*TRADE's.

As of writing this, neither E*TRADE nor TradeStation offer direct exposure to cryptocurrencies. While this could change in the future for E*TRADE, it appears as if TradeStation has exited the crypto market indefinitely. On Feb. 22, 2024, it discontinued its crypto services. If you're interested in direct exposure to crypto, you'll have to buy it through a crypto exchange or app.

When it comes to account types, E*TRADE again trumps TradeStation. That's mainly because of Morgan Stanley's takeover of E*TRADE, which has made the former's checking and savings accounts accessible to those with an E*TRADE account. It also offers robo-advising, which is missing from TradeStation.

Both TradeStation and E*TRADE have powerful trading platforms and apps with robust tools, research, and market commentary. In a head-on-head comparison, you're basically watching Godzilla wrestle with King Kong.

TradeStation has a feature-rich trading platform known for its complex charting capabilities. For example, you can overlay over 120 technical indicators to help you analyze market volatility or give you a sense of how the market might be trending. These tools might be overwhelming for beginners, but for advanced and experienced investors, it can give you multiple ways to analyze an investment.

E*TRADE isn't far behind. Its web-based platform has impressive charting capabilities and highly rated options trading features. It's also highly customizable, too, allowing you to modify charts in whatever way helps you spot potential opportunities. It also has numerous screeners for stocks, ETFs, mutual funds, and option trading.

All in all, these are two goliath platforms with a lot of firepower in their tools and charting capabilities. However, if you want to trade mutual funds, or you're interested in robo-advising, E*TRADE may be better suited for you. Otherwise, you might want to watch videos of both platforms in action -- neither one offers a free trial -- or take a look at other top brokerages to see if another one better suits your needs.