ChoiceTrade Commissions, Fees, and Minimum Deposit
|Stocks and ETFs|| $5|
|Stocks and ETFs (direct access)|| $0.0025 per share, $5 minimum per trade, Direct Pro platform is required ($135 monthly fee)|
|F Stocks (Foreign stocks trading in the U.S. with five letter symbol ending in F)||$25|
|Foreign stocks on foreign exchanges||$75|
|Bulletin Board & Pink Sheet (Penny Stocks)|| $7|
|Options|| $5 + $0.50 per contract ($0.55 per contract for options transacted on Direct Pro platform)|
|Mutual funds|| $25|
|Investments||stocks, options, mutual funds, ETFs|
|Choicetrade minimum deposit to open account|| $0 for cash account, 2,000 for margin account|
|Promotion link||Choicetrade promotions|
** Per contract charge applies to trades on the online platform. $0.55 a contract for options transacted on Direct Pro. There is a list of index options, including SPX, OEX and VIX, for which Choice Trade charges a surcharge of $0.65 per contract in addition to the regular commission. This surcharge does not apply for options on ETFs such as QQQ or SPY. If you participate in a third-party investment program, then your minimum commission per option trade will be $10, exclusive of index option surcharges (if applicable).
It takes 10 minutes to complete a new account registration at ChoiceTrade -- the forms are short and very
well designed. The firm uses an ingenious way to get the customer's signature -- they provide a little box where clients
can draw their signature with a mouse.
Our application was approved in 15 minutes (during work hours, but possibly longer on weekends and evenings),
after which the company emailed us our user name and password (both can be changed in Account Settings).
Because we opened the account without making a deposit, at that point we were able to use only limited set of the features on the website.
ChoiceTrade Website/Trading Platform/Tools Review
ChoiceTrade provides three trading platforms depending on investor’s trading experience. The firm offers two web-based platforms and a stand-alone,
advanced, downloadable direct access trading platform developed primarily for day-traders. All platforms are well-designed and provide just
about anything an average investor needs as well as lots of advanced features most investors will never use.
First is website-based Choicetrader - a trading platform that does not require plug-ins and can run on any device, including smart-phones and tablet devices such as
iPad. Choicetrader provides complex option trading capability, dynamic trade ticket, expanded learning center, order staging and more. Real-time
quotes, however, are showing up only at trade preview. Choicetrader is free of charge.
For anyone who wants streaming quotes there is QuoteStream trading platform available with ‘trade now’ capability that integrate into ChoiceTrade’s website.
The platform comes also in QuoteStream Pro version which is the same as the basic version with the addition of time and sales data, advanced charting and
mobile access. QuoteStream costs $14.95 per month, QuoteStream Pro costs $29.95 per month.
ChoiceTrade Direct Pro is direct access trading software with excellent administration flexibility that is useful for implementing sub-account set-ups.
It's built for fast Level II trading of equities and single-leg options with full order routing capability. It costs $135 per month.
There are pretty good mobile versions of all three trading platforms available. These apps are rated at about 3.5-stars at Google Play and Apple iTunes
- Low commissions
- Powerful trading platforms (albeit for a steep fee)
- Free virtual trading
- While the web-based trading platform with delayed quotes is free, more advanced platforms are not: Choicestreamer is $15-$25
per month, ChoiceTrader Direct Pro is $135 per month
- Extended hours stock/ETF trades carry a $0.005 per share surcharge
- $35 quarterly fee if customer makes less than five trades in a calendar quarter and account equity less than $50,000
- $2 surcharge on bulletin board and pink sheet stock trades (penny stocks). For OTC orders over 500,000 shares, add 1% of the total dollar
value of the order to the base commission of $7 per trade
- $50 annual IRA fee, $25 IRA setup fee
- Steep $15 options assignment and exercise fee
- Streaming quotes are not free
ChoiceTrade Review Summary
Based in New Jersey, ChoiceTrade offers pretty good commission structure, with $5 per trade rate for stocks and ETFs. Direct access commissions are
$0.0025 per share with $5 minimum per trade; however, a client will have to spend $135 per month on Direct Pro platform to get this rate.
Options pricing is very attractive at $5 per ticket plus $0.50 per contract. Mutual funds cost $25 per transaction - the company does not advertise
mutual funds investing since it is focused on active stock and options traders. Minimum to open cash account at the firm is $0, for margin account
ChoiceTrade's pricing schedule looks very good but there are additional fees to be aware of. There is a $0.005 per share surcharge on extended hours stock
and ETF trades which makes many of these trades very expensive. Additionally, there is a $2 surcharge on bulletin board and pink sheet stocks, and a 1% surcharge
on penny stock trades with over 500,000 shares. The company is also charging a $35 quarterly fee for clients with accounts under $50,000 and making less
than five trades in a calendar quarter. Options assignment and exercise fees are steep at $15.
Because there is a $50 IRA annual fee and a $25 IRA setup fee, which most online brokers don't charge, ChoiceTrade is not a good option for a brokerage
retirement account. The company is not very friendly to beginner investors - it targets as customers active and experienced traders.
Unlike the majority of brokerage firms that offer free streaming quotes, to get streaming quotes at ChoiceTrade a client will have to pay at least $15 per month.
Advanced trading platform will cost a customer $135 per month, while many competitors do not charge for trading software, and the best trading
platforms in the industry are available for free at TD Ameritrade and Optionshouse.
In conclusion, with all the fees a surcharges, we don't see any compelling reasons to become a ChoiceTrade customer.
Even active stock traders can find a better value elsewhere.
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