We recently announced that going forward, TradeStation will be our recommended brokerage firm. They will also be the primary supported brokerage firm for Lattco Pro and AutoPilot.
We began conversations with TradeStation early this year. Since then, we have continued to grow more excited about the opportunity to work with them. We would like to share some of the benefits TradeStation offers to you.
First, their trading fees are lower than Ally Invest. Although the commission for stock trades will still be $0.00, the fee for option contracts will be lower. At TradeStation, you will pay $0.35 per contract instead of the $0.50 you paid at Ally Invest.
In addition to saving money in trading fees, your TradeStation account has the potential to earn a little extra income. TradeStation will pay interest on the cash in your account. Their current rate is two percent annually. Since Snider Method investors typically have cash in their accounts, you should see a boost to your income over time.
TradeStation has a keen focus on the technology behind creating a powerful trading and research platform. Although Snider Method investors may not need all the enhanced tools they offer, we are confident that their better technology will result in a more efficient trading experience.
You should also see a significant improvement in the speed and performance of Lattco, as we expect TradeStation’s API to create a faster and more reliable connection. Historically, Lattco has been a very stable and consistent application. The majority of the issues it has experienced have stemmed from Ally Invest’s API connection.
One of the things we are most excited about is that TradeStation has a good reputation for customer service to active traders. They have assured us that they are committed to providing support to our clients, and so far, we have been impressed. They have already assigned a devoted customer service representative for our clients to contact directly.
Although there are many benefits to the transitioning to TradeStation, there are a couple of downsides. If you have an IRA, you will pay a $35 annual account fee. However, we will try to negotiate a lower fee in the future.
Unfortunately, their interface is very different than what you are accustomed to with Ally Invest’s classic trading platform. While this is certainly not ideal, fewer and fewer brokerage firms continue to offer a simple, straightforward trading experience.
Although AutoPilot clients will not be affected by this change, it will make a difference if you use Basic Lattco or Lattco Pro. To help you get through the learning curve as quickly as possible, we will create guides and other resources to familiarize you with the trading screens. Additionally, TradeStation’s platform is customizable. We hope to create a uniform template that fits the trading techniques of the Snider Method.
If you need any help opening your TradeStation account, please let us know. We are excited about this transition and believe it will be beneficial to our clients.
Disclosure: Snider Advisors has an economic incentive for recommending that clients open an account with TradeStation. Specifically, Snider Advisors receives a flat referral payment for each new customer it refers to TradeStation. More detailed information about the relationship and our fiduciary responsibility can be found in our ADV Part 2A. Clients may contact Snider Advisors with any questions about the terms of the agreement with TradeStation.