TradeStation Group Reports Record Quarterly Revenues, Income before Income Taxes,
DARTs and Brokerage Accounts

Net Income Increases 84% and Revenues Increase 35% Year over Year; Pre-tax Margin Increases to 39%

Plantation FL, April 25, 2006—TradeStation Group, Inc. (NasdaqNM: TRAD) today reported record quarterly revenues of $29.4 million, record quarterly income before income taxes of $11.5 million, and record daily average revenue trades (DARTs) of over 59,000. The company also added, net, 2,313 brokerage accounts in the 2006 first quarter.

TradeStation Group’s 2006 first quarter net income of $7.0 million, or 15 cents per share (diluted), was an 84% increase from 2005 first quarter net income of $3.8 million, or 9 cents per share (diluted). The company’s 2006 first quarter income before income taxes of $11.5 million was a 95% increase from income before income taxes of $5.9 million for the 2005 first quarter.

The company’s 2006 first quarter net revenues of $29.4 million were a 35% increase over 2005 first quarter net revenues of $21.8 million. The company’s pre-tax margin increased to 39% in the 2006 first quarter, as compared to a 27% pre-tax margin in the 2005 first quarter. Pre-tax margin is determined by dividing the company’s income before income taxes by its net revenues.

“We are very pleased with our record 2006 first quarter results,” said David Fleischman, the company’s Chief Financial Officer.

TradeStation Reports Record DARTs and Total Brokerage Accounts

For the 2006 first quarter, TradeStation experienced the following year-over-year daily trading growth results with respect to equities, futures and forex accounts:

“We attribute our growth in DARTs to consistent account growth, favorable market conditions in the 2006 first quarter, the robustness of our high-end client base, and the diversity of our service offering,” said Fleischman. The company also published today, in a separate announcement, its DARTs and Total Client Assets for the month of March 2006.

TradeStation added, net, 2,313 brokerage accounts during the 2006 first quarter. At the end of the 2006 first quarter, TradeStation had 26,797 brokerage accounts.

TradeStation’s Average Client Trades Over 580 Times per Year and Has an Average Account Balance of $90,000 for Equities and $17,500 for Futures

TradeStation’s brokerage client account metrics are among the very best in the industry. TradeStation brokerage clients generated the following client account metrics in the 2006 first quarter:

While, on an annualized basis during the 2006 first quarter, the average TradeStation account traded about 580 times, or 49 times per month, the average TD Ameritrade and E-Trade account traded about 11 to 13 times per year, or approximately one time per month. Also, TradeStation’s average assets per equities account of $90,000 was substantially higher than the average assets per account of TD Ameritrade and E-Trade.

TradeStation Again Recognized as Industry Leader in the Active Trader Space

In the 2006 first quarter, TradeStation was once again recognized as a leading brokerage firm for active traders. In February, the company won 11 major awards in Stocks and Commodities magazine, including, for the fourth time in a row, Best Direct-Access Stock Brokerage, and, for the second year in a row, Best Futures Brokerage. Then, in March, Barron’s magazine gave TradeStation, along with five other online brokerage firms, its highest star rating this year – 4½ stars – in its annual ratings of online brokerage firms. TradeStation also received from Barron’s the highest rating given for "Trade Execution," and was ranked far above any other brokerage in "Range of Offerings," a testament to its provision of online brokerage services for equities, options, futures and forex.

“To again be so highly-regarded in both of these leading industry magazines is truly an honor for our company,” said Bill Cruz, Co-Chairman and Co-CEO.

Company Provides Business Outlook for 2006 Second Quarter

The company’s second quarter Business Outlook estimated ranges are as follows:

The company’s second quarter 2006 Business Outlook is based on numerous assumptions, including:  basing the midpoints of the ranges, in part, on recent trading activity levels and market conditions; anticipated growth and trading activity of active trader equities and futures accounts; the continuing anticipated effects of having lowered thresholds for waiving the monthly platform fee charged to brokerage clients and of a recently-modified futures commission pricing structure; the rate of growth and impact of the company’s direct-access options execution service offering; interest rates (and the extent to which they will or will not increase or decrease); the cost of ongoing litigation and the amount of any judgments, awards, settlements or regulatory fines or sanctions; the impact of the company’s planned May 1, 2006 increase in the monthly fee charged for subscription accounts offered by TradeStation Technologies; the effect of new accounting rules that require recording of compensation expenses with respect to stock-based awards granted to employees; the timing of expenses relating to company growth initiatives as compared to the timing of anticipated benefits from those initiatives (including the company’s 2006 second quarter plans and activities to open a Chicago sales office in the Sears Tower); and numerous other assumptions concerning the company’s business and industry, market conditions, and various decisions, acts or failures to act both within and outside of the company’s control. All assumptions, expectations and beliefs relating to the Business Outlook are forward-looking in nature and actual results may differ materially from those estimated, including, but not limited to, as a result of, or as indicated by, the issues, uncertainties and risk factors set forth and referenced above and below.

Conference Call/Webcast

At 11:00, a.m., Eastern Time, today, the senior management of TradeStation Group will conduct an analyst conference call to discuss the company's 2006 first quarter results and its second quarter 2006 Business Outlook. All company shareholders and the public are invited to listen. The telephone conference will be broadcast live via the Internet at www.TradeStation.com. The live webcast will be accompanied by slides of graphs and charts. A rebroadcast of the call will be accessible for approximately 90 days.

About TradeStation Group, Inc.

TradeStation Group, Inc. (NasdaqNM: TRAD), through its principal operating subsidiary, TradeStation Securities, Inc., offers the TradeStation platform to the active trader and certain institutional trader markets. TradeStation is an electronic trading platform that offers state-of-the-art “direct market access” (DMA) or “direct-access” order execution and enables clients to design, test, optimize, monitor and automate their own custom trading strategies. In 2006, TradeStation was named, for the second year in a row, Best Futures Brokerage and, for the fourth year in a row, Best Direct-Access Stock Broker, Best Direct-Access Futures Broker, Best Professional Platform and Best Institutional Platform, in Technical Analysis of Stocks and Commodities magazine. The trading platform currently offers streaming real-time Equities, Options, Futures and Forex market data.

TradeStation Securities, Inc. (Member NASD, NYSE, SIPC, NSCC, DTC, OCC & NFA) is a licensed securities broker-dealer and a registered futures commission merchant, and also a member of the American Stock Exchange, Archipelago Exchange, Boston Options Exchange, Chicago Board Options Exchange, International Securities Exchange, Pacific Exchange and Philadelphia Stock Exchange. The company’s other operating subsidiary, TradeStation Technologies, Inc., develops and offers strategy trading software tools and subscription services.

Forward-Looking Statements – Issues, Uncertainties and Risk Factors

This press release, including the second quarter 2006 Business Outlook, and today’s earnings conference call, contain statements and estimates that are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, or the conference call, the words “anticipate(s),” “anticipated,” “anticipation,” “assume(s),” “assumption(s),” “become(s),” “belief(s),” “believe(s),” “believed,” “could,” “designed,” “estimate,” “estimates,” “estimated,” “expect(s),” “expected,” “expectation(s),” “going forward,” “future,” “hopeful,” “hope(s),” “intend(s),” “intended,” “look forward,” “may,” “might,” “opportunity,” “opportunities,” “outlook(s),” “pending,” “plan(s),” “planned,” “potential,” “scheduled,” “shall,” “should,” “think(s),” “to be,” “upcoming,” “well-positioned,” “will,” “wish,” “would,” and similar expressions, if and to the extent used, are intended to identify forward-looking statements. All forward-looking statements are based largely on current expectations and beliefs concerning future events that are subject to substantial risks and uncertainties. Actual results may differ materially from the results herein suggested or suggested in the conference call. Factors that may cause or contribute to the various potential differences include, but are not limited to, the following:

Contact —

David H. Fleischman
Chief Financial Officer
TradeStation Group, Inc.
954-652-7000

TRADESTATION GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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