ChoiceTrade Review: 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 with $125 per month 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 + $0.15 per contract ($0.15 applies to trades on the online platform. $0.55 per contract for options transacted on Direct Pro platform)|
|Mutual funds|| $25|
|Investments||stocks, options, bonds, mutual funds, futures, treasury issues, CD’s, insurance, ETFs, annuities, WEBs, Canadian foreign orders and non-US securities|
|Choicetrade minimum deposit to open account|| $0 for cash account, 2,000 for margin account|
It takes 10 minutes to complete a new account registration at ChoiceTrade -- the forms are short and very
well designed. The firm found an ingenious way to get the customer's signature -- they provide a little box where you
can draw your signature with a mouse!
The 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).
At this point we were ready to use all the features and fund the account, although we opened the account with no minimum deposit.
ChoiceTrade.com Website/Trading Platform/Tools Review
ChoiceTrade provides two choices for trading: web-based and stand-alone, professional,
advanced trading platforms developed primarily for day-traders. Both options are well-designed and provide just about everything the average
investor needs as well as lots of advanced features most investors will never use. Web-based trading does not require plug-ins
and can run on any device, including smart-phones and tablet devices like the iPad.
The firm created an Investor Community where users connect with like-minded traders and investors, share
portfolios, and participate in ChoiceTrade-sponsored events. The Investor Community allows customers to create
a personal profile, meet and communicate with other members, form investment clubs, read and create blogs, and more.
Users get access to mailbox, chat and instant messaging features.
- 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 and streaming quotes are not: web-based Choicestreamer is $14.95 per month,
ChoiceTrader Direct Pro is $125 per month
- Extended hours stock trades carry a $0.005 per share surcharge
- $20 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
- Very little research is offered
- Steep $15 assignment and exercise fee
ChoiceTrade Review Summary
ChoiceTrade offers pretty good commission plan, with a $5 per trade rate for stocks and ETFs.
The options pricing is $5 plus $0.15 per contract. There is an additional $0.005 per share
surcharge on extended hours stock and ETF trades, 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 $20 quarterly fee for clients with accounts under $50,000 making less than five trades in
a calendar quarter.
We don't recommend opening account with ChoiceTrade for mutual fund investors - the company has a steep $25 fee for mutual fund
transactions. There are better-priced online brokerages for mutual funds such as
Optionshouse (OptionXpress review) and
TradeKing (TradeKing review) - both charge just $10 per transaction.
Since 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, even though it offers a helpful online trader community - most of its customers
are experienced traders. For anyone new to investing, we recommend
checking our Best Brokerages For Beginners list.
The firm has low commissions but to get streaming quotes you'll have to pay at least $15 per month. To get more advanced
trading tools, you'll pay $125 per month (while the best trading platform in the industry - Thinkorswim - is free at
TD Ameritrade). This means that unless you are a professional trader, it makes no
sense to open account at ChoiceTrade.
In conclusion, unless you are an active stock or options trader, we don't see any compelling reasons to become a ChoiceTrade customer. Anyone who is not in that category we
encourage to research companies in our Best Brokerages list.
Reviewed by Brokerage Review on
Reviewed by Editor and 10+ ChoiceTrade customers.