Tradestation "Caveat Emptor"
- From: "Bruiser" <sanden_moonshine@xxxxxxxxx>
- Date: 12 Aug 2006 13:46:09 -0700
Just detailing my recent experience with Tradestation; which also
included a fascinating "open mike" (accidental by TS Tech Support) {and
that is a great oxymoron all by itself}.
Initially settled on TS as the best of the automated trading platforms
- based somewhat on "planted" TS reviews, website information, etc.
Was I wrong, wrong, wrong.
1) In order to trade "free" with TS, you have to have $1,000,000 (no
fooling!) in your account OR trade 25,000 shares per month (equities),
same equivalent for options, forex, etc.
2) For this, TS Securities pays a paltry 1.1% on the cash balance
(BTW, TS earns an average of 8.43% on your money, as of July 2006). So
TS earns a spread of just over 7%, which equals $7,000/month on a
software package they used to charge $5,000 for (2000i version), total
one-time fee.
3) Biggest problem...TS v7, v8.xx ARE NOT TESTED with dual processor,
dual core processor or Hyperthreading, as claimed on their website (you
have to look through about three layers to find the technical specs).
TS software completely locked up my primary server (Intel dual
processors running 3.4GHz, with HT, 1 terabyte of HDD, etc.)
TS Technical Support asked me to go through all sorts of technical
gymnastics, including sending them 10+ pages of reports on system
configuration, etc. Before then, and here is where it was revealing:
I called tech support for a thrid time and asked them to escalate the
issue (at the time, because TS stated it was compatible & tested, I had
not tweaked my server, i.e. put TS in Processor 0 and turned off HT).
Instead of putting me on hold, the lower level tech put me on
speakerphone! I heard 22 minutes of sad/hilarious/behind-the-scenes
and ultimately revealing truth about TS. Bottom line, never tested on
Intel P4 or AMD K6.
TS is NOT COMPATIBLE, and based on my five computer LAN, CANNOT
FUNCTION without disabling dual core, dual processor and HT
technologies.
Well, what is the problem? If you are an active pattern trader, daily,
scalping or whatever, you are depending on best fill and movements on
Level 2 or Level 3 in pennies. Even if TS v8.xx launches (which it
does not most of the time), and you place a trade, well chances are you
will have to reboot...and guess what, instead of concentrating on your
trades, you are completely blind until you reboot and re-login.
BTW, other annoying issues with TS, in general:
A) It's all about getting your money ASAP. There is almost nothing on
the website you can tap into without the blessings of the Registered
Rep (sales agent). They want you to send in at least $25,000 that day.
If you are lucky, you can get access, but the demo is so lame as to be
laughable...compared with the actual package. I had to laugh more when
I scheduled a webinar, and the instructor's own version of TS
froze/failed to load, so the session ended with a really weak apology.
B) The HELP function is only available as a thin client. That is, no
help files reside on your computer - and you also may not print them,
except as a single page. The help files are also poorly tabulated,
missing very common query entries, and are not even as well written as
Wikipedia - even though TS people wrote the Wiki articles!!!
C) Getting your money in and out is made difficult on purpose so TS
can maximize the use of your money. Total turnaround time: 11 days
from receipt to credit!!! 12 days to return funds to source
(Fidelity). Also, TS will let you do almost nothing online. They
require almost everything by snail mail to their offices in Florida,
including a signature guarentee form.
By contrast: RBC Dain Rausher, everything by phone or email. Three
days max. Fidelity, almost everything by email or phone, confirmations
the next day, any issues can be handled by walking into one of the many
retail offices which are open from 7 AM. eTrade, not bad. Schwab,
similar to Fidelity. Ameritrade...as pathetic as TS.
D) Just on a side note. Spent two or three hours with the Registered
Rep in Sales at TS (Ray); who gave me his song and dance about his vast
experience, blah, blah, blah; all the money he made, blah, blah, blah.
So I asked him if TS was so great, how come he wasn't just trading his
own account? Usual answers: "I love people" "This is just a way to
stay busy", etc. Ray told me he works 12 hour days, minimum. Now that
strikes me as a guy who is full-of-s..t, has a master plan to work
himself to death or... It is not the response from someone who has
confidence in his own product. Would you work 12 hours a day if you
could make 1%/day consistently on investment? No, I didn't think so.
Kind of like those idiots who win a million or two in a State Lottery
and claim they will continue to work as a baker or cashier at Wal-Mart.
Well, sorry for all the verbiage - ended up like a blog.
I really didn't lose any money (other than a month's interest on $30K),
so my main purpose was to get the word out that TS lied on their
website. I'm thinking about the SEC and FTC
for a complaint because I'm earning that 1% every day...
<;-O
.
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