Intro
The services of Interactive Brokers (IBKR) and TradeStation are of similar quality, but IBKR has a slightly better overall score; in fact, BrokerChooser named it as Best online broker for 2022.
Here's a summary of how IBKR and TradeStation compare in some important categories:
| Interactive Brokers | TradeStation | |
|---|---|---|
| Overall score | 4.9 stars | 4.7 stars |
| Recommended for | Traders looking for broad market access and a professional trading environment | Traders focusing on US markets and buy-and-hold investing |
| Fees score | 4.5 stars | 4.2 stars |
| Account opening score | 3.2 stars | 5.0 stars |
| Deposit and withdrawal score | 3.0 stars | 2.2 stars |
| Markets and products score | 5.0 stars | 3.2 stars |
Interactive Brokers vs TradeStation
Fees and funding
Fees
In terms of fees, little separates the two brokers. Both have low trading fees in general and offer free stock and ETF trading for US customers. However, TradeStation charges an inactivity fee while IBKR does not, so IBKR wins this category.
Deposit and withdrawal
You can use only bank transfer to deposit and withdraw money at both brokers. The process is more convenient at Interactive Brokers as it offers a large selection of account base currencies (23); although withdrawals are a bit slow, taking about two days. At TradeStation, the withdrawal time is just one day, but USD is the only base currency available for equity accounts, and overseas withdrawals are costly.
Interactive Brokers vs TradeStation
Platforms and products
Account opening
Account opening is a lot easier and faster at TradeStation, with account approval taking only one day; versus up to three days and significantly more hassle at IBKR. You can open an account fully online at both brokers, and neither demands a minimum deposit for standard cash/equity accounts, though both require a $2,000 deposit for margin trading.
Trading platforms
TradeStation and Interactive Brokers both offer mobile, web and desktop platforms. TradeStation's mobile trading app is more user-friendly than IBKR's, but IBKR has a better desktop platform. Both brokers offer complex desktop platforms that are not very well suited for beginner investors.
Markets and products
IBKR wins this category hands down both in terms of product availability and market coverage. It offers virtually all asset types and provides access to many international markets, whereas TradeStation focuses on US markets only and - partly as a consequence - doesn't offer forex or CFDs.
Interactive Brokers vs TradeStation
Research, education and support
Research and education
Research and education tools are excellent at both Interactive Brokers and TradeStation. Both offer great analysis, sophisticated charting, plenty of learning materials and a demo account. TradeStation's research tools are slightly more user-friendly, but some of them are available for a paid subscription only.
Customer service
When it comes to customer service, you can contact both IBKR and TradeStation via phone, live chat and email. However, neither offers 24/7 support.
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