Published March 15, 2024
Fact Checked
Ashley Maready
TradeStation and Interactive Brokers are both highly-rated online brokers, especially designed for active investors and traders. Both offer high-powered trading platforms, lots of investment choices and account types, and reasonable fees. In this TradeStation vs. Interactive Brokers comparison, we'll take a side-by-side look to see which could be better for you.
TradeStation vs. Interactive Brokers: At a glance
| Offer |
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|---|---|---|
| Rating |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
$0 stock trades |
As low as $0 stock trades |
| Account Minimum | $0 | $0 |
| Next Steps |
TradeStation vs. Interactive Brokers: Commissions & fees
Both of these brokers offer $0 commission stock and ETF trades. Interactive Brokers has a volume-based options commission structure. On the other hand, TradeStation uses a flat rate that is in-line with peers.
TradeStation and Interactive Brokers have the same standard $14.95 mutual fund commission, but Interactive Brokers has thousands available on a no-transaction-fee (NTF) basis, while TradeStation does not. TradeStation's account transfer fee is one of the highest we've come across, making it rather costly to move your assets to another broker.
| TradeStation | Interactive Brokers | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0.60 per contract | $0.15 to $0.65 per contract |
| Crypto commissions | N/A | 0.12% to 0.18% |
| Mutual fund commissions | $14.95 | $0 to $14.95 |
| Account transfer fee | $125 | $0 |
| Account maintenance fee | $0 | $0 |
Data source: Tradestation and Interactive Brokers.
TradeStation vs. Interactive Brokers: Investments available
There are a few key differences between these two brokers for investment availability.
For starters, TradeStation doesn't facilitate fractional share trading, while Interactive Brokers does. The latter could also be the better choice for mutual fund investors. Not only does Interactive Brokers have thousands of fee-free mutual funds to choose from, but with more than 48,000 mutual funds on its platform, it has the best selection of any broker on our radar.
Another big difference is cryptocurrency trading. Not long ago, both of these brokers would have been on a level playing field. However, TradeStation decided to discontinue cryptocurrency trading in February 2024, so while Interactive Brokers only offers a few major cryptocurrencies on its platform, it's the only choice if that is going to be part of your strategy.
Both of these platforms offer futures and foreign currency (forex) trading, and both allow investors to buy fixed-income securities, or bonds.
| TradeStation | Interactive Brokers | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | Yes |
| Options | Yes | Yes |
| Mutual funds | Yes, over 2,000 | Yes, over 48,000 |
| CDs | No | No* |
| Bonds | Yes | Yes |
| Futures | Yes | Yes |
| Crypto | No | Yes |
| Currencies | Yes | Yes |
Data source: Tradestation and Interactive Brokers.
TradeStation vs. Interactive Brokers: Account types available
Both allow brokers for joint investment accounts, both offer margin privileges, and both have IRAs (including SEP IRA and SIMPLE IRA accounts) and custodial accounts available. And neither platform offers traditional banking products, such as savings or checking accounts.
There are two major differences to note. First, if you're looking for a robo-advisor, Interactive Brokers has one with its Interactive Advisors platform. TradeStation doesn't offer a comparable automated investing option.
Second, while neither broker offers savings accounts, it's important to mention that Interactive Brokers pays an APY on uninvested cash that is comparable to what you'd expect from a high-yield savings account. But TradeStation doesn't pay interest on cash balances.
| TradeStation | Interactive Brokers | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | No | Yes, Interactive Advisors |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | Yes, SEP IRA and SIMPLE IRA | Yes, SEP IRA and SIMPLE IRA |
| Custodial | Yes | Yes |
| Checking | No | No |
| Savings | No | No** |
| Credit card | No | No |
Data source: Tradestation and Interactive Brokers. **Interactive Brokers pays a highly competitive APY on uninvested cash balances.
TradeStation vs. Interactive Brokers: Mobile app and trading platforms
TradeStation offers three different platforms. Its TradeStation Web Trading is a browser-based platform that enables investors to simply log in and place trades, check prices, and more. The TradeStation 10 is the desktop trading platform with tons of charting tools, customizable indicators, and much more. And the TradeStation mobile app is designed to enable complex stock, options, and futures trades on the go.
Interactive Brokers offers two mobile and two desktop trading platforms. The IBKR Desktop platform is the newest one, and is designed to make it easy for beginners to buy and sell stocks, while still meeting the needs of experienced investors and traders. There's also the IB Trader Workstation (TWS), which is a high-powered platform for advanced stock, option, and futures traders.
On the mobile side, the IBKR GlobalTrader app is an extremely user-friendly platform for investors of all experience levels, while the IBKR Mobile app is better suited for experienced traders.
Final take
The bottom line is that both of these platforms offer quite a bit, and were both designed with active investors in mind. If you're a beginning investor, these are two highly functional platforms that could certainly work, but you might be better off with a platform that was designed with beginners in mind.
If you're an active investor or trader, either of these could be a good fit for you. Both brokers offer a demo, or play money, account mode, so the best course of action could be to test drive both platforms to see which is a better fit for you.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
| Account | Fees | Account Minimum | |
|---|---|---|---|
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Featured Offer
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold | $0 | |
|
$0 for stocks, $0 for options contracts | $0 | |
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 | $0 |
Our Brokerages Experts
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Matt Frankel has no position in any of the stocks mentioned. The Motley Fool recommends Interactive Brokers Group. The Motley Fool has a disclosure policy.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)