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TradeStation vs Robinhood

Friday, December 13th

2024 Online Stock Trading Platform Reviews

TradeStation Review 3 Star Rating

TradeStation

3 Star Rating
  • Great tools for advanced traders
  • Promotions are consistently offered for new account holders
  • Improved customer service
  • Multiple awards, both recently and going back to 2016
  • High customization for users of the software
  • Support forum

TradeStation is known for its robust tools and platforms, with so many features that even seasoned day traders are impressed. It has won multiple awards and has a wide variety of futures products for the active trader. TradeStation has recently updated their website in an attempt to attract less experienced investors. They have also improved their customer service and pricing structure. However, their fees are still higher than competitors, they employ outdated fee-charging practices, and they offer little by way of educational resources for such a high-level platform. The positives and negatives of this company end up being about even, so we feel comfortable giving TradeStation an average rating.

Robinhood Review 1.5 Star Rating

Robinhood

1.5 Star Rating
  • Sherwood Snacks daily financial trading news for newbies
  • Offers a no-fee Robinhood credit card with rewards
  • Premium services offered at $5 per month
  • Over 22 million users
  • Fractional shares and crypto are available
  • Under the Hood weekly podcast hosted by the CEO
  • 24/7 chat support, phone support available 7 am to 9 pm ET

Robinhood is controversial by design. Their sole focus is to shake up the industry by allowing anyone - not just the wealthy - to invest in the stock market affordably. They are the originators of the no commission, no minimum stock trading model, and they indeed turned the industry on its head. Since then, they have continued in their irreverent and boisterous way to shake up the market. Unfortunately, we have found that they are more "outlaw” than is acceptable. Recently, they had to pay a $7.5 million fine for the "gamifying” of their mobile app platform, and before that, they were slapped with the largest fine in FINRA history for questionable practices that have led to people's financial distress and, in one case, resulted in a suicide. We cannot recommend them as a stock trading platform, but we do appreciate their innovative ideas. We just wish that Robinhood could carry them out with a bit more integrity.

Which Online Stock Trading Platform is the Best?

This can be an overwhelming question for beginning investors - but that's a great place to start. First, ask yourself what level of skills or knowledge you have in investing and what your purposes for investing are. Are you brand new to the financial world of stocks, ETFs, fractional shares, and options? Are you trying to manage a large amount of wealth? Are you looking for a safe place to grow your savings over the next few decades?

Or, are you someone who has had a lot of experience in investing and wants to get back into the game or take your game to the next level? Are you wanting to take high risks, or are you more conservative in your approach? There are plenty of options out there and there are some who focus on everything and some who specialize in one or two niche markets.

The Best Online Stock Trading Platforms Compare Online Stock Trading Platforms Compare Online Stock Trading Platform Reviews What are the best Online Stock Trading Platforms Best Online Stock Trading Platform Reviews

Online Stock Trading Platform FAQ

No! In fact, most online stock trading platforms go out of their way to introduce beginners to the investment process. Online stock trading is appropriate for all levels of experience.
It's commonly accepted that investing in the stock market is an essential part of growing one's wealth. Using buying and selling stock online is a terrific way to get started or to continue expanding your portfolio. These stock trading platforms often have 24/7 assistance, in contrast with your local investment firm that operates according to traditional business hours. Plus, trading stock online can take off any pressure you might feel, letting you do the research and make your choices at your own pace and comfort level.
No matter which online stock trading platform you choose, you'll likely have a wealth of options at your fingertips. From access to third-party resources like Morningstar and CFRA, to plans that include professional management of your investments, you can get as much (or as little) input as you want.
Some stock trading platforms let you enter financial information from other institutions, so that you have an all-in-one place to track your net worth. You may also see tools for budgeting, tracking spending, and so forth. Also, if you choose a platform that's connected with your bank, you might get extra perks like free stock trades or seamless transfer of funds between accounts.
It's only as expensive as you decide to make it. You'll typically see per-trade fees, but some platforms have no-charge options. For example, you might be able to buy and sell mutual funds with no additional fees, or only pay fees for trades that require a live broker's assistance.
That depends on the stock trading platform you select. If you're just getting started, you may want to choose to invest with a service that has no minimum deposit. On the other hand, if you're an experienced investor and you're working with a larger investment amount, you'll be able to access more options among stock trading platforms.
Most stock trading platforms offer no guarantee that you'll be satisfied with their services. However, there are a small number of platforms that will refund your service fees and/or commissions paid if you're not happy, while working with you to address the problem.
Yes! This is a highly-regulated industry, and most of the stock trading platforms you'll find have been in business for decades (if not longer!). Where you decide to trade stocks will largely depend on your experience level with investing, the amount you're looking to put into the market, and what kind of investment help you want to have available.
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Continued from above...

For beginning traders, there are platforms that have devoted a big part of their online presence into education. Some have partnered with banks so you can do all of your investing along with your banking.

For active traders, the best platforms will have advanced charting capabilities, responsive customer service, robust toolkits, and they will also offer high-quality research resources. We highly recommend those platforms that allow for backtesting - a way to put in a particular strategy simulation and see how it might play out before committing to the trade in real life. Be sure to ask questions and double-check that whatever stock trading platform you use, they will have the tools that fit your particular needs.

For example, if you are going to be trading mostly on your mobile phone, you will want to make sure the stock trading company you choose has a strong mobile platform. Some companies do a bare-bones mobile app, and that would not be a suitable fit. Be sure to check if software platforms have a history of outages or glitches, too.

Are you the kind of investor who doesn't want to actually pull the trigger on choosing which stocks to buy on your own? You might want to look into robo-advisors or a dedicated financial advisor or team of advisors. These accounts usually come with fees as a percentage of the total amount invested, but it can be well worth the cost if you don't want to be involved in the day-to-day management and strategy on your account.

Most advisor accounts (robo or personal) involve you completing a questionnaire and/or a phone call that considers your time frame, financial goals, and risk tolerance. From there, the company will create a portfolio matching the information you gave. This portfolio will be rebalanced automatically, and you don't have to do a thing. On those types of accounts, you can find options with no fees, and the ones that do charge fees are usually much less expensive than working with a human advisor one-on-one.

Keep in mind that most of today's online stock trading platforms very proudly advertise that they charge "$0 fees." That usually just refers to a $0 commission fee. There will definitely be at least one or two fees for most accounts. Whether it's for withdrawal or broker-assisted transactions, there are going to be some extra costs associated with your account.

So, which online stock trading platform is best for you? Here are some of the criteria to keep in mind:

  • Intended investment strategy. Are you an active day trader? A buy-and-hold investor? A conservative investor taking the slow and steady way to build a retirement? Are you willing to take risks? Are you a natural researcher or do you want someone else to do that for you?
  • Ease of use. Is the website difficult to figure out? Is it easy to open an account, or do you have to go through a lot of extra hoops? Do you prefer to talk to someone on the phone, or is live chat your go-to way to communicate? Are there tutorials and online help for learning how to use the platform?
  • Tools. Do you want lots of tools, or do you just want someone else to worry about it? Do you want to have an app that is integrated with your bank? Is there a mobile app? Is it web-based or downloadable? Can you connect with research resources that match your level of expertise?
  • Customer service. What do other clients say about their experiences with the company? How are issues handled by customer service? Are the financial advisors helpful?
  • Reputation. Is this a service with a long history in the financial industry or a relative newcomer? Is the company insured or backed by government or private agencies? Do they have a history of litigation or being fined by FINRA or other agencies? Are they transparent?

To help you make the most of your investments, Top Consumer Reviews has evaluated and ranked today's most popular online stock trading platforms. We hope this information helps you reach your financial goals!

Compare Online Stock Trading Platforms

Select any 2 Online Stock Trading Platforms to compare them head to head

best-stock-trading-platforms
  • Fidelity
  • Merrill Edge
  • Zacks Trade
  • Sogo Trade
  • Ally Invest
  • Charles Schwab
  • Firstrade
  • TradeStation
  • E*Trade
  • SpeedTrader
  • Robinhood
  • Webull
Fidelity vs Merrill Edge Fidelity vs Zacks Trade Fidelity vs Sogo Trade Fidelity vs Ally Invest Fidelity vs Charles Schwab Fidelity vs Firstrade Fidelity vs TradeStation Fidelity vs E*Trade Fidelity vs SpeedTrader Fidelity vs Robinhood Fidelity vs Webull Merrill Edge vs Zacks Trade Merrill Edge vs Sogo Trade Merrill Edge vs Ally Invest Merrill Edge vs Charles Schwab Merrill Edge vs Firstrade Merrill Edge vs TradeStation Merrill Edge vs E*Trade Merrill Edge vs SpeedTrader Merrill Edge vs Robinhood Merrill Edge vs Webull Zacks Trade vs Sogo Trade Zacks Trade vs Ally Invest Zacks Trade vs Charles Schwab Zacks Trade vs Firstrade Zacks Trade vs TradeStation Zacks Trade vs E*Trade Zacks Trade vs SpeedTrader Zacks Trade vs Robinhood Zacks Trade vs Webull Sogo Trade vs Ally Invest Sogo Trade vs Charles Schwab Sogo Trade vs Firstrade Sogo Trade vs TradeStation Sogo Trade vs E*Trade Sogo Trade vs SpeedTrader Sogo Trade vs Robinhood Sogo Trade vs Webull Ally Invest vs Charles Schwab Ally Invest vs Firstrade Ally Invest vs TradeStation Ally Invest vs E*Trade Ally Invest vs SpeedTrader Ally Invest vs Robinhood Ally Invest vs Webull Charles Schwab vs Firstrade Charles Schwab vs TradeStation Charles Schwab vs E*Trade Charles Schwab vs SpeedTrader Charles Schwab vs Robinhood Charles Schwab vs Webull Firstrade vs TradeStation Firstrade vs E*Trade Firstrade vs SpeedTrader Firstrade vs Robinhood Firstrade vs Webull TradeStation vs E*Trade TradeStation vs SpeedTrader TradeStation vs Robinhood TradeStation vs Webull E*Trade vs SpeedTrader E*Trade vs Robinhood E*Trade vs Webull SpeedTrader vs Robinhood SpeedTrader vs Webull Robinhood vs Webull
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