Capital One Investing Review

Capital One Investing Penny Stock Fees

Capital One Investing penny stock fees: commission charged for buying pink sheets/OTCBB/stocks priced under $1 in 2016. Is Sharebuilder\Capital One Investing good for (offers) penny stocks trading?

Capital One Investing Penny Stock Fees

In addition to the base commission ($6.95 per trade), Capital One Investing (Sharebuilder) will add a $0.007 surcharge per share on market and limit order trades when the average execution price per share is less than $1.00. The total commission (base commission + surcharge) is subject to a maximum of 15% of the principal amount of the trade, but no less than the base commission.

This means that an order with 5,000 shares of any Pink Sheets/OTCBB/penny stock will cost you $42. This is a very high rate. It's much less expensive to trade stocks priced under $1 with one of the Best Penny Stock Brokerages.

Capital One Investing Pros

  • Capital One Investing is a brokerage house known for offering low cost automatic investing plans that allows clients to make automatic investments on Tuesdays at a low price of $3.95
  • The firm offers its customers no charge dividend and capital gains reinvestment
  • There are no IRA account setup fees as well as no annual IRA fees
  • Capital One Investing doesn't have any account maintenance or inactivity charges
  • The firm provides an easy and cost effective way for clients to create a diversified portfolio with their Portfolio Builder tool
  • No money is required to open a regular brokerage or an IRA account at the firm - they have $0 minimum to open cash account
  • Good banking services (savings, checking accounts; debit and credit cards) are offered through the parent company, Capital One Bank (Capital One 360 promotions)

Capital One Investing Cons

  • Unfortunately Capital One Investing does not offer extended hours trading - this pretty much excludes all active traders from becoming customers
  • To add insult to injury the firm does not allow shorting stocks or ETFs
  • Capital One Investing is focused on long term investors and therefore their trading tools are basic. There is no advanced trading platform like with many other online brokers
  • The firm charges $49.95 short term redemption fee on any no-load mutual fund held less than 90 days
  • Automatic Investing plan trades can only be made on Tuesdays
  • There is a $0.007 per share surcharge on real-time trades on penny stocks - this is likely in order to save clients from falling a victim to penny stock scams

Capital One Investing Review

Updated on 3/17/2016.

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