TradeStation

Overview

TradeStation Securities, Inc. is both a securities broker-dealer and a futures commission merchant (FCM), so you can trade stocks, options and futures through one firm. It is best known for its desktop platform, which includes the RadarScreen scanner, with backtesting available through Portfolio Maestro. Futures commissions fall as your monthly volume rises.

For a small futures account, TradeStation is more expensive than futures-only brokers on two fronts: commissions at the lowest volume tier, and intraday margins that are almost three times the $50 MES and $500 ES day-trade margins some competitors offer.

Commissions and fees

Rates are per contract, per side, by monthly contracts traded.

Other futures fees TradeStation lists:

• Trades through the FuturesPlus platform: $1.75 per contract, per side.
• Futures options: $0.85 per contract, per side.
• Exercise, assignment or expiration: $1.50 per contract.
• Broker-assisted trade: $25. Margin or risk liquidation: $75.
• Futures external transfer: $25. Physical delivery: $150 per contract plus delivery costs and exchange fees.

All-in cost example

TradeStation publishes CME exchange fees on its exchange execution and clearing fees page: $1.38 per side for ES and $0.35 per side for MES at non-member rates, plus an NFA regulatory fee of $0.01 per contract.

One round turn of MES (0 to 500 contracts a month):

• Commission: $0.50
• Clearing fee: $0.10
• CME exchange fee: $0.35
• NFA fee: $0.01
• Per side: $0.50 + $0.10 + $0.35 + $0.01 = $0.96
• Round turn: $0.96 × 2 = $1.92

One round turn of ES (0 to 500 contracts a month):

• Commission: $1.75
• Clearing fee: $0.10
• CME exchange fee: $1.38
• NFA fee: $0.01
• Per side: $1.75 + $0.10 + $1.38 + $0.01 = $3.24
• Round turn: $3.24 × 2 = $6.48

At more than 10,000 contracts a month the clearing fee drops to $0, and the round turns fall to ($0.25 + $0.35 + $0.01) × 2 = $1.22 for MES and ($0.50 + $1.38 + $0.01) × 2 = $3.78 for ES. Compare scenarios with our profit and loss calculator.

Margins

TradeStation's futures margin page lists these requirements per contract:

TradeStation says margin rates can change at any time and posted rates may not reflect real-time requirements. These intraday levels are well above the $40 to $50 MES day-trade margins at several futures-focused brokers. Higher margin limits leverage, which some traders see as a safeguard and others as a constraint. Our margin calculator shows how margin compares with contract value.

Platforms

The main platform is TradeStation's desktop software. The pricing page lists the TradeStation platform with RadarScreen at $99.99 a month for non-professionals ($199.99 professional) for non-brokerage customers, which implies brokerage customers do not pay it; confirm with TradeStation. Portfolio Maestro, a backtesting tool, costs $59.95 a month, and OptionStation Pro is included. Futures traded through the separate FuturesPlus platform cost $1.75 per contract, per side. Certain basic market data is free for non-professional subscribers, with extra fees for some data.

Account opening and minimums

TradeStation's pricing page does not state a futures-specific account minimum. It lists a $2,000 minimum to open and maintain a position on margin for securities. Futures trading requires approval, and you need at least the intraday margin above to open a position.

Regulation

TradeStation states that securities and futures trading is offered by TradeStation Securities, Inc., a futures commission merchant registered with the CFTC and a member of FINRA and the NFA. The NFA ID is not printed on the pages we checked. Search for TradeStation Securities in NFA BASIC to confirm its current registration.

Pros and cons

Pros

• Futures, stocks and options in one account.
• Established desktop platform with scanning and backtesting tools.
• Exchange fees and margins published clearly.
• Basic market data free for non-professionals.

Cons

• $1.75 per side on E-minis at the lowest tier, plus $0.10 clearing.
• Intraday margins of $1,431.15 ES and $143.10 MES.
• No futures-specific minimum stated.
• Portfolio Maestro backtesting costs extra.

Who it suits

TradeStation suits traders who also trade stocks and options and want one platform for all of them, and high-volume futures traders who reach the lower tiers. Small-account micro day traders will usually find lower margins and cheaper base commissions at futures-focused brokers.

Frequently asked questions

What does TradeStation charge for micro futures?

$0.50 per side at up to 500 contracts a month, falling to $0.25 above 10,000, plus a $0.10 clearing fee below that level.

What is TradeStation's MES day-trade margin?

Its margin page lists $143.10 intraday initial and $130.10 intraday maintenance per MES contract.

Does TradeStation charge a clearing fee?

Yes, $0.10 per contract per side, waived above 10,000 contracts a month.

Is TradeStation an FCM?

Yes. TradeStation states TradeStation Securities, Inc. is a CFTC-registered futures commission merchant and NFA member.

What does an ES round turn cost at TradeStation?

At the lowest volume tier, $6.48 including commission, clearing, CME exchange and NFA fees.

• TradeStation pricing
• TradeStation exchange execution and clearing fees
• TradeStation futures margin requirements
• TradeStation futures pricing disclosures