4.5-star brokerage firm rating

TradeKing Review

Capital One brokerage rating

Capital One Investing Review

TradeKing vs Capital One Investing

Account Pricing, Commissions, and Fees


Capital One Investing

  • Stocks and ETFs: $4.95
  • Options: $4.95 + $0.65 per contract
  • Short options valued at 5 cents or less, can be bought to close these positions for no charge (commission free)
  • Mutual funds: $9.95
  • Bonds: $1 per bond with $10 minimum, $250 maximum
  • Treasuries: commission-free
  • Certificates of Deposit (CDs): $24.95
  • Investments: stocks, options, mutual funds, bonds, CDs, forex, treasuries, ETFs
  • TradeKing minimum deposit to open account: $0 for cash account, $2,000 for margin account
  • All TradeKing fees
  • TradeKing login, TradeKing promotions and TradeKing referral

  • Stocks and ETFs: $6.95
  • Stocks and ETFs phone trades: $19.95
  • Options: $6.95 + $0.75 per contract
  • Mutual funds: $19.95
  • Automatic Investments (stocks, mutual funds and ETFs): $3.95
  • Investment products: stocks, options, mutual funds, ETFs
  • Capital One Investing minimum deposit to open account: $0 for cash account, $2,000 for margin account
  • All Capital One Investing fees
  • Capital One Investing login, Capital One Investing promotions

TradeKing vs Capital One Investing: Pros


Capital One Investing

  • Very low commissions
  • No minimums, or maintenance or hidden fees
  • Free real-time quotes
  • Top-rated customer service
  • Best online investor community
  • Fee-free IRAs
  • Free DRIPs (dividend reinvestment plans)
  • Extensive educational resources
  • Low cost professional portfolio management

  • Low cost automatic investing plan
  • Free DRIPs (dividend and capital gains reinvestment)
  • No fee IRA account
  • No account maintenance or inactivity fees
  • Easy and cost effective way to create a portfolio with Portfolio Builder tool
  • $0 to open cash account, $2,000 for margin account
  • Good banking services (savings, checking accounts; debit and credit cards) provided by the parent company Capital One (Capital One 360 promotions)

TradeKing vs Capital One Investing: Cons


Capital One Investing

  • Additional $0.01 per share on the entire order for stocks priced at less than $2
  • $50 annual inactivity fee if BOTH apply to an account(s):
    • Combined account value of the household account(s) is less than $2,500
    • No commission-charged trades have been executed in the account(s) during the last 12 months
  • Short after-hours trading: 4:00 pm - 5:00 pm EST, instead of 4:00 pm - 8:00 pm EST

  • No extended hours trading
  • Shorting is not allowed
  • Basic trading tools and no trading platform
  • $49.95 fee on any no-load, no-transaction fee mutual fund held less than 90 days
  • Automatic Investing plan trades are made only on Tuesdays
  • $0.007 per share surcharge on real-time trades on penny stocks (subject to a maximum of 15% of the principal amount of the trade, but no less than the base commission)

Capital One Investing vs TradeKing: Comparison Summary

Capital One Investing/ShareBuilder (Capital One Investing Review) is known for its automatic investing plans, which allow investors to take advantage of dollar-cost-averaging by arranging to have a set amount invested weekly (Capital One does this on Tuesdays). To place a regular stock or ETF trade, clients pay a $6.95 commission. Mutual funds at the company are priced at $19.95 per transaction.

Capital One Investing right now offers sub-par trading tools and slow order executions. The firms is one of the very few who does not provide pre-market and after-hours trading as well as short selling stocks and ETFs, which makes Capital One Investing a terrible choice for active trading.

TradeKing (TradeKing Review) is ranked among the Top Brokerage Firms in 2016. The firm received lots of awards: 5-star rating in Customer Service and Trading Tools in Barron's Broker Survey; Best in Customer Service in Smart Money Magazine brokers review; overall #1 Discount Broker for two years in a row, according to Barron's. Its commission on stock and ETF trades is $4.95 and on mutual funds it is $9.95 - both much lower than at the competitor.

TradeKing is much friendlier brokerage for new investors, offering lots of learning materials and helpful online user community where novices can ask questions, learn from more experienced traders and get investment ideas.

Capital One Investing and TradeKing don't have IRA setup or annual IRA fees, and the latter is our recommended brokerage for an IRA.

In summary: if you want to automatically dollar-cost-average your investments over the period of time then go with Capital One Investing. There is no other advantage the company offers over the competitor. TradeKing is by far the better brokerage firm for a majority of investors.

TradeKing Promotion - get $100 in free
trade commissions:

TradeKing Review

Capital One Promotion - none
right now:

Capital One Investing Review

Updated on 7/5/2016.

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