These are among the most sophisticated brokers in the industry in terms of investment offerings, market access and technology.
In this article, we compare TradeStation to Interactive Brokers , based on some key metrics , such as margin rates, pricing and fees , investment product offerings and market access, trading platform technology, market data and research. Interactive Brokers Margin Rates.
IB offers significant value to active traders who can meet the requirements. Stocks, ETFs and Options: Traders have the option to be charged a flat-fee or per-share commission for equities and per-contract commission for options. We note that the base or per-trade rate on the flat-fee pricing structure applies to both option contract and equity stocks and ETFs trades.
The per-contract commission on flat-fee pricing applies only to option trades. Unbundled pricing is a third pricing scheme for stocks and ETFs that results in major savings for institutional or volume traders, who can direct their clearing to a particular exchange, and impacts the liquidity of the chosen exchange.
Other fees, such as exchange execution and clearing fees by markets, apply to TradeStation futures trading, depending on the exchange membership level of the trader e.
Active traders and institutional clients get even better execution, liquidity and spreads, with spreads as low as 1 pip e. Bonds and mutual funds: The first 10 option contract cancelations are free of charge so long as the total cancelations do not exceed the number of orders for the day on the per-contract commission pricing.
The per-share pricing has no cancelation fees. The fixed plan is a flat rate for each transaction e. VAT , exchange and regulatory fees are included. Not all fees are included in the fixed rate commission, rather some e. Savings passed along to the traders include a share of the rebates from the exchanges. Commission, Fees And Customer Support. Clearly, IB targets seasoned, well-funded active traders and trading institutions such as hedge funds and proprietary trading firms.
This is reflected in its high minimum account opening balance requirement e. Stocks, ETFs and warrants: In Europe, the fixed commission is usually 0. Austria, Germany, Belgium and France and varying maximum commissions.
Some exceptions apply, where fixed commission in the Nordic countries Sweden and Norway is 0. Tiered commission, as explained before, drops as the trade value or shares increases; unlike the fixed rate, both rebates and fees from the exchanges are passed along to traders. The tiered commission, based on the number of traded shares per month, ranges from USD 0. The tiered pricing is illustrated in the table below.
The tiered commission structure in Europe is illustrated in the table below. The table below illustrates the tiered commission structure for options in the US. Futures and Futures Options: IB charges both fixed rate and tiered per trade commission for its futures and futures on options.
In the non-US markets, the fixed rates are priced either as a flat rate per transaction e. The table below is an example of the tiered commission in the US and few other major markets. The requirements range from a low 2. Corporate bonds and municipal bonds munis trade in the US at the tiered commission rate of 10 bps or 0. Treasuries transact at the tiered rate of 2. The minimum commission for all bond trades is USD 5. Metal Commodities gold and silver: They trade on fixed commission rates of 0.
The annual storage cost of physical assets is 10 bps. The European funds trade both at the fixed rate and at the tiered commission rate. The fixed rate is 0. The tiered commission rate, only applicable to European funds, ranges from 0. Broker-Assisted Trades only in the US are priced as follows: Interactive Brokers is ripe with many types of fees that traders need to be aware of e.
Trade all the primary investment products: One of the prominent features of Interactive Brokers is that it gives traders access to market centers in 24 countries e.
IB has one of the most versatile investment offerings among online brokerage firms. It has a marketplace where clients can access independent advisers for a fee.
It is recognized by in the industry for having some of the best tools and technologies traders can have at their disposal. Trade at home, office and on-the-go on desktops, laptops, smartphones, tablets and the web. It provides highly customizable trading platforms TradeStation and OptionStation that enable advanced charting, option and Greek calculators, quick trade bar and sophisticated order-entry tools that enable complex option positions. TradeStation Labs is a team of analysts that assists traders to master the platform and provides insightful research and analysis.
Recognia is an advanced technical charting tool that analyzes tens of thousands of investment products equities, futures and currencies at exchanges across the globe to identify the patterns of emerging opportunities for traders. IB also provides a very advanced platform and tools for sophisticated traders. Probability Labs and Option Calculator help option traders visualize the option mechanics and assist them in computing and analyzing option profit, Greeks and option probability distribution , including scenario analysis.
Option Strategies Widget assists traders in the creation and testing of various option strategies. Traders get access to research, news feeds and market data from both Interactive Brokers Information System "IBIS" own research and news service provider and other vendors for a fee.
Volatility Lab assists traders in mapping out historical, forward-looking and implied volatility profiles and skews. Automated Trading With Interactive Brokers. Another key advantage of Interactive Brokers is that it is known for delivering value price improvement through its Smart-Router.
Option traders can direct their smart-routed orders of non-marketable securities to an exchange that offers the best rebate or liquidity. These brokers are neither ideal nor recommended for beginners who will most certainly find themselves dazed with these very advanced platforms that require a steep learning curve and the complex fee structure.
TradeStation is the best for sophisticated and institutional traders who can best use its advanced technologies, willing to pay for value-added tools and research, and can comprehend and effectively navigate its fees and pricing schemes to their advantage. Again, Interactive Brokers is most suitable for sophisticated traders who can pay for its tools and research mostly provided by third parties , and can find value in paying for its various services, navigate its very complex fee structure to their advantage as well as can afford and find value in its services on the whole.
Most importantly, IB is best suited for traders who value diversification of investment products and access to international markets. These brokerage firms target the same clientele seasoned, well-funded and active traders with few differences, and this is evidenced by their minimum monthly activity fees mentioned above. Day traders and institutional traders who can trade the necessary volume, have the skills to maximize the value of the tools and products from these brokers, and can minimize the average costs will benefit the most from these brokerage firms.
Due to the complexity of the platforms and burdensome fees, these brokers may be detrimental to new and inexperienced traders, infrequent traders and those who are not well funded to take advantage of the pricing schemes.
These brokers attract traders with the promise of advanced tools and greater access to markets and investment choices, including international exchanges, and not on the basis of simple and cheap pricing structure or attractive promotions. As both brokers are riddled with numerous and complex fees, traders should spend sufficient time to familiarize themselves. Interactive Brokers has an especially complex fee and pricing structure. Dictionary Term Of The Day.
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Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. A celebration of the most influential advisors and their contributions to critical conversations on finance. Become a day trader. Interactive Brokers These are among the most sophisticated brokers in the industry in terms of investment offerings, market access and technology.
Margin Rates TradeStation vs. The Bottom Line These brokerage firms target the same clientele seasoned, well-funded and active traders with few differences, and this is evidenced by their minimum monthly activity fees mentioned above.
A conflict of interest inherent in any relationship where one party is expected to act in another's best interests. Passive investing is an investment strategy that limits buying and selling actions. Passive investors will purchase investments How much a fixed asset is worth at the end of its lease, or at the end of its useful life. If you lease a car for three years, A target hash is a number that a hashed block header must be less than or equal to in order for a new block to be awarded.
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