TradeStation Group Reports Record Net Income and Total Brokerage Accounts

DARTs Increase 42% Year over Year While Net Income Increases 49% and Revenues Increase 31%

Plantation FL, October 19, 2006—TradeStation Group, Inc. (NASDAQ GS: TRAD) today reported record quarterly net income of $7.8 million and record total brokerage accounts of over 30,000.

TradeStation Group’s 2006 third quarter net income of $7.8 million, or 17 cents per share (diluted), was a 49% increase from 2005 third quarter net income of $5.3 million, or 12 cents per share (diluted).  Income before income taxes was $12.3 million in the 2006 third quarter, a 39% increase from 2005 third quarter income before income taxes of $8.9 million. The company’s 2006 third quarter net revenues of $32.2 million were a 31% increase over 2005 third quarter net revenues of $24.5 million.

TradeStation Reports Record Total Brokerage Accounts, and DARTs Increase 42% Year over Year

For the 2006 third 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 the diversity of our service offering, consistent account growth, and the robustness of our high-end client base,” said David Fleischman, TradeStation Group’s Chief Financial Officer. The company also published today, in a separate announcement, its DARTs and Total Client Assets for the month of September 2006.

TradeStation added, net, nearly 1,600 brokerage accounts during the 2006 third quarter, reaching a record 30,265 brokerage accounts as of September 30, 2006.

TradeStation’s Average Client Trades 500 Times per Year and Has an Average Account Balance of $81,000 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 third quarter:

While, on an annualized basis during the 2006 third quarter, the average TradeStation account traded 500 times, or nearly 42 times per month, the average TD Ameritrade and E-Trade account traded about 8 to 10 times, or less than once per month. Also, TradeStation’s average assets per equities account of $81,000 was nearly double the amount of the average assets per account of TD Ameritrade and E-Trade.

Company Provides Business Outlook for 2006 Fourth Quarter

The company’s fourth quarter 2006 Business Outlook estimated ranges are as follows:

The company’s fourth quarter 2006 Business Outlook estimated ranges are based on numerous assumptions, including: basing the midpoints of the ranges, in part, on recent trading activity levels and market conditions, as well as trading activity levels and market conditions during the first nine months of 2006; anticipated growth and trading activity of active trader equities and futures accounts; interest rates (and the extent to which they will or will not increase or decrease for the remainder of 2006); the cost of ongoing litigation and disputes and the amount of any judgments, awards, settlements or regulatory fines or sanctions; the timing of expenses relating to company growth initiatives as compared to the timing of anticipated benefits from those initiatives; 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 third quarter results and its fourth 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. (NASDAQ GS: 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 Equities, Options, Futures and Forex 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.

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 fourth quarter 2006 Business Outlook estimated ranges contained in this press release, 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
(Unaudited)