Despite solid performance from the internet-brokerage space, shares of TradeStation (NASDAQ: TRAD) have struggled over the last six months. TradeStation is a very unique broker because it offers traders the ability to automate and backtest their trading strategies.

TradeStation's stock is undervalued even though it has strong growth potential, positioning in a hot sector, and a new product that has the potential to serve as a catalyst in the next few quarters.

TradeStation currently trades for 17x earnings -- a multiple that is currently below the industry average of 22x earnings, the multiple of both TD Ameritrade (NASDAQ: AMTD) and Charles Schwab (NASDAQ: SCHW). While skeptics point to the lowly multiple of 15x earnings on ETrade (NASDAQ: ETFC), I counter their arguments with the simple fact that the company's balance sheet is loaded with debt.

While the company's below-average multiple would make you think the company is not as profitable as the industry average, quite the opposite is true. TradeStation boasts operating margins of 41% versus the industry average of 35% and the company's return on equity is in-line or superior to its two richly-valued competitors, TD Ameritrade and Charles Schwab.

TradeStation is also growing at impressive rates. Last quarter the company reported 20% quarter over quarter sales growth and 18% quarter over quarter net income growth. In June the company reported that May trading activity and client assets both increased about 5% when compared to the same period last year.

The current market conditions are perfect for the online brokers. When people turn on their TVs to see new highs in the markets seemingly every day, they become more interested in following the markets. As they see stocks like Google (NASDAQ: GOOG) and UnderArmour (NYSE: UA) flying, they quickly begin thinking: I know these companies, I can take part of this boom! As a result, trading activity with online brokers logically increases are investors are sucked in by the green on quote pages just as people are sucked into casinos by the bright lights and sounds of flowing coins. As proof that the brokers are prospering, on Thursday TD Ameritrade reported earnings and revenues which both came in above street estimates.

Therefore, I think the future for TradeStation's trading activity and client assets looks bright. Quite logically, I expect these two trends to force the company's earnings and revenues to continue growing at impressive results and keeping the street satisfied.

Even with all these benefits, I think there's still one more potentially-huge catalyst for TradeStation shares: the company's developing forex platform. Forex is the foreign exchange market for currencies. Proponents of forex preach about the market's long trading hours and tight spreads. Despite what you think about forex, it's pretty undeniable that forex trading is growing, especially in the United States.

TradeStation is going to ride this trend with its innovative new forex offering. Its foreign exchange product, much like its equity trading platform, gives traders the ability to design, backtest, and use automated trading strategies. Because the company's platform is so different from the typical forex trading system, I think it has the ability to pique the interest of people who haven't previously traded forex or those who were unsatisfied with their prior forex broker. When the company introduced it automating platforms for futures and options, these segments quickly grew in popularity.

TradeStation's undervalued properties surrounded by growth, a solid secular trend occurring in the industry, and a solid new offering create a very enticing investment proposition.