Capital One Investing Commissions, Fees, and Minimum Deposit
|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|
The Capital One Investing new account opening process is one of the easiest and fastest we experienced. The registration screens are very well designed, with excellent attention
to detail, and it took us less than 10 minutes to complete all of them.
There is no minimum initial deposit requirement, so investors can quickly open an account and see whether they like what Capital One Investing
has to offer before committing any money. If they do choose to deposit money, it becomes available for trading the next business day.
Customers can conveniently and easily fund a newly-opened brokerage account electronically from their checking account, or alternatively they can open
a high-interest bank account with Capital One Investing's parent company, Capital One. Linking Capital One bank account directly to an investing
account allows to instantly transfer money to/from brokerage.
Capital One Investing Mutual Funds Review
Investors will find over 400 mutual funds at Capital One Investing that come with no load and no transaction fee. There are over 500 funds that do carry a
transaction fee, but are no load. In total, the broker has slightly more than 1,000 funds. This is a very small list compared to what most other brokers
offer, including Fidelity and Vanguard.
Capital One does have a small screener that can search by various criteria, such as Morningstar rating, expense ratio, and performance history. The broker
does have other mutual fund resources on its site. There are pre-defined screens, such as value funds and low expense ratios. One article describes the
difference between mutual and exchange-traded funds. Overall, there isn't much from this broker for mutual fund investors.
Capital One Investing does not set a minimum purchase amount for the funds available on its site. Instead, each fund has its own minimum established in
the prospectus. Some funds available for purchase have a $250 minimum. There is no low-balance fee for funds charged by the broker, although there is
a $49.95 fee for selling a no-load, no-transaction-fee fund less than 3 months after purchase. Transaction-fee funds will set traders back $19.95 on both
the buy and sell sides.
Capital One Investing offers Roth, Traditional, and Rollover IRA's. The broker does not require any minimum deposit to open an IRA, and there is no on-going
minimum balance requirement. A Capital One Investing IRA has no setup, annual, or inactivity fees. There is also no fee to close a retirement account.
The Capital One Investing website does have some IRA materials on it. There are articles that cover retirement issues, such as creating an income stream
after work, rolling over a 401(k) plan, spousal IRA's, and tax planning. A tool called RetireMyWay helps users estimate how much income they will have
during retirement, and how much they could have by saving a little more each month. It bases its calculation on various inputs, such as age at retirement,
conservative or aggressive investment style, and life expectancy. Compared to Merrill Edge and E*Trade, there are fewer IRA resources on the Capital One
Investing site. Nevertheless, Capital One has retirement specialists available at 1-877-464-0292 during the weekday to answer any questions about opening an IRA.
Capital One Investing Review: Website/Trading Platform/Tools
Capital One Investing's trading tools are easy to use but rudimentary. They get the job done in simple cases, but the firm should invest in
developing a more sophisticated trading platform. One feature that we liked is email trade confirmations that get sent right after each trade is
executed, not the next day as with many other brokers. Another nice feature, is an ability to make bill payments and check deposits right from
a smartphone or a tablet.
Capital One Investing makes it easy to set up a dividend reinvestment plan, enabling clients to buy stocks (including fractional shares) with
dividends earned, creating compounding effect with dividend-paying stock positions. If client decides to cash out any earned dividends, that is
easy to setup as well.
Their website looks clean and is easy to use. With just a few mouse clicks customers can quickly view information such as most-active market
movers in a particular security type and index. For the more macro-minded investor there are performance metrics available by sector and industry,
showing a given sector’s performance over time and even allowing quick comparison to the S&P 500 Index.
Portfolio Analysis tool allows users to review either their entire portfolio collectively or each individual investment, so they can examine
aspects such as top holdings, allocation among asset classes and industries in which they currently hold positions (handy for checking on
diversification), as well as global regions and market caps related to their holdings. Users can create custom screeners for stocks, ETFs, mutual
funds, and bond funds, allowing to search for a investments that meet their requirements. There are even research tools for them to gather
information on IPOs, such as a calendar that shows upcoming IPO dates. And for options traders there are calculators, and a calendar for keeping
track of expiration dates.
Mobile apps are available for iPhone, Kindle Fire, or Android. With them users can trade stocks, ETFs, and options; get quotes and news;
check balances and order status; and transfer money. The apps, however, are rated very poorly by users in iTunes and Google Play stores.
The Portfolio Builder is a cost saving tool that Capital One Investing offers its clients. For $18.95 charge clients are able to create a whole
portfolio of ETF’s. Instead of determining how many shares to buy, and how much in commissions and fees to deduct, investors simply
enter how much money they have to invest and the Portfolio Builder takes care of the rest. Investors choose from an assortment of ETF allocation
models, and also get to choose their ETF fund classes for maximum customization. Investors track their progress against the indexes and can make
changes to allocations as needed. The Portfolio Builder is a great way to increase diversification in ETF’s which regularly outperform the
Capital One Investing uses Morningstar research tools and analytics (ratings and reports for stocks and funds), which provide enough information
for investors to make educated trades. The sections for equities, ETF’s, mutual funds, bonds, options and IPO’s are filled with search options so
that investors can limit data with very specific criteria. Some of the equities criteria included are: highly rated performers, dividend
stocks, bargains, and “tech titans.” Investors can search for ETF’s and mutual funds based on criteria such as analyst ratings, returns and net
The “What if I had invested” tool allows investors to run reports and numbers on hypothetical investments. There is also Markit Research Team
Consensus reports, which bring together ratings and analysis from up to 13 providers in one easy-to-read package. The research tools are
customizable and easy to use.
Capital One Brokerage Pros
- Low cost automatic investing plan
- Free DRIPs (dividend and capital gains reinvestment)
- No fee IRA accounts
- 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 parent company Capital One (Capital One 360 promotions)
Capital One Brokerage Cons
- 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)
Compared to other brokerage firms, it's hard to recommend Capital One Investing. Some investors may like its $6.95 stock and ETF trades. Others may prefer
its affiliation with the financial strength of the Capital One Financial Corporation.
Capital One Investing Review Summary
Capital One Investing until last year was called ShareBuilder and the firm is now part of U.S. banking giant Capital One. While many
investors do not take the likes of Capital One Investing seriously, it has its place in the world of online investing. ShareBuilder made a name for itself
with its Automatic Investing plans, which allow customers to take advantage of dollar-cost-averaging by arranging to have a set amount invested
in stocks, ETFs, and some mutual funds weekly at a relatively low cost of $3.95 per trade. With ShareBuilder's plan clients can only make investments on Tuesdays.
Capital One brokerage does not have minimum balance requirements, or inactivity or maintenance fees. Investors can open a cash account with $0 down.
Real time stock and ETF trades are priced at a about average in the industry rate - $6.95. Mutual funds have a very good $19.95 per transaction rate.
Capital One Investing offers a potentially helpful service called Express Funding. The idea there is that client doesn’t actually have to have the funds
already transferred into their Capital One Investing account, but can instead include a (pending) funds transfer instruction as part of the order
entry. This costs an extra $6.95 per transaction - doubling the base trading fee, and allows clients to buy investments whenever there is an opportunity
without waiting for funds transfer. Funds transfers into clients trading account are otherwise free and fast or even instantaneous if moving funds in from
Capital One 360 account.
Unlike almost all other online brokers, Capital One Investing doesn't offer pre-market or after-hours trading which is a real problem for many
active investors. The firm is also one of the few discount online brokerages that doesn't allow shorting stocks. Coupled with very basic trading
tools and slow executions, it makes the company a terrible choice for traders and active investors.
In summary, if you are looking to invest automatically (dollar-cost-average your investments) or want a cheap way to create a portfolio consisting
of ETFs, then Capital One Investing is one of the best options available. The company is definitely leaning more towards passive investment style,
therefore active investors or anyone looking for advanced tools, products or services from their brokerage should check out other online brokers.
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Capital One Investing
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