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ESG investing at TradeStation

Your expert
Adam N.
Fact checked by
Updated
Jan 2024
Personally tested Personally tested
Data-driven Data-driven
Independent Independent

ESG investing at TradeStation as of January 2024

If you're investing for the long-term and can afford to look beyond simple profits and fees, ESG (environmental, social and corporate governance) investing is a great way to contribute to a more sustainable future.

TradeStation has some ESG-focused products and tools on offer, but maybe not the best on the market. See below if you can find a better alternative.

My key findings in a nutshell
Adam
Adam Nasli
Financial Wizard | Trading • Safety • Market Analysis

I've thoroughly tested TradeStation services with our analyst team by opening a real-money account and these are my most important findings:

  • ESG investing focuses on companies' environmental and social practices and impact
  • TradeStation offers a decent number of ESG-themed assets to invest in
  • TradeStation provides OK tools to find and learn about ESG investments
TradeStation ESG services
Overall score
4.4 stars
ESG score
2.8 stars
ESG research quality
-
ESG ETFs
130
ESG funds
160
ESG education quality
Poor

Data updated on January 29, 2024

BrokerChooser score
4.4 4.4 /5
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What is ESG investing?

Are you a long-term investor? Then you probably care deeply about what the world will look like in 20 or 30 years. If you want to help bring about a future that is environmentally sustainable and socially inclusive - and can afford to set aside some or all of your savings for this purpose - we suggest you turn your attention to ESG investing.

What is ESG investing? It is an increasingly popular investment trend that involves taking into account environmental, social and corporate governance factors when deciding what sectors or companies to invest in.

  • Environmental criteria include companies' contribution to (or its efforts to prevent) climate change, pollution or biodiversity loss
  • Social criteria focus on treating employees, customers and suppliers fairly; involvement in armed conflict or humanitarian crises; or efforts to tackle public health issues such as those related to smoking or alcohol consumption
  • Corporate governance criteria involve transparency, protecting shareholders' rights, and leadership quality

The good news is that returns on ESG-focused investments are not necessarily inferior to those on non-ESG investments, although fees may be higher.

If you need more information, read our comprehensive introduction to ESG investing, or check out some helpful ESG investing strategies.

ESG assets at TradeStation

You can always make your own judgment whether a specific stock is ESG-compatible, but ESG investing is easiest via special ESG-themed ETFs (exchange-traded funds) or mutual funds. These are often special versions of popular index funds (such as those tracking the S&P 500) that give a larger weight to ESG-friendly stocks within the index or drop companies that engage in environmentally or socially harmful practices.

Here's what TradeStation and its closest competitors have to offer when it comes to ESG-themed instruments:

TradeStation and competitors ESG product selection
ESG ETFs
130 130 700
ESG funds
160 - 800
Stock and ETF fee scores
3.7 stars 5.0 stars 4.6 stars
Mutual fund fee scores
3.2 stars 0.0 stars 3.2 stars

Data updated on January 29, 2024

ESG tools at TradeStation

How can you tell if a stock has a good ESG record? Some brokers have great screeners that help you find the best ESG stocks among the thousands of stocks out there. Short of that, a good search function on your broker's trading platform can help you find ESG-themed ETFs or mutual funds. Some brokers also offer educational articles or webinars on ESG investing.

Here's how we rated these tools at TradeStation and some of its immediate competitors:

TradeStation and competitors ESG tool quality
ESG research quality
- - Great
ESG education quality
Poor - Great

Data updated on January 29, 2024

Best brokers for ESG investing

Do you want to zoom out and pick the best broker for long-term investment based on a full set of criteria including fees, trading platform experience and product selection? Look no further than our list of the best brokers for ESG investing.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

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Further reading

Author of this article

Adam Nasli

Financial Wizard | Trading • Safety • Market Analysis

I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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