TradeMonster Review 2014: Commissions, Fees, and Minimum Deposit
|Stocks and ETFs|| $4.95|
|Stocks and ETFs broker assisted|| $22.50|
|Options|| $0.50 per contract (minimum $12.50 for single leg orders and $15 minimum per spread for multi-leg orders)|
|Futures|| $1.50 per contract|
|Options on Futures|| $1.50 per contract (excluding exchange fees, NFA fees, overnight and platform fees as applicable)|
|Mutual funds|| $15 to buy, $0 to sell|
|Bonds|| $15 + $1 per bond (Municipal, Corporate, Agency, Treasury)|
|Investments|| stocks, options, mutual funds, bonds, stock futures, commodities futures, futures options, ETFs|
|TradeMonster minimum deposit to open account|| $2,000|
We opened a regular brokerage account, and the application process was very quick: it took us about 12 minutes to complete it. Some of the forms could be better designed,
granted, but we had no major problems. Thanks to the electronic signature option (we actually drew the signature with a mouse), there are no forms
to print and mail.
TradeMonster's ACH money transfer setup requires the verification of two small deposits to the customer's bank account, which takes up to three business days to
complete (though it took only one day for us). Some online brokers now offer instant bank account setup and money transfers, and we would love to see that made available at TradeMonster.
A new virtual trading (practice) account is immediately funded with $100,000 of virtual money, enabling the customers to start
practicing trading, and playing with the various trading tools right away.
TradeMonster.com Website/Trading Platform/Tools Review
TradeMonster offers a powerful and flexible webbrowser-based
trading platform, where just about everything is customizable. There are also great tools for charting, trending,
drawing your own patterns on the charts, and scanning for opportunities.
While the company's complex platform is great for advanced traders, it can be very confusing for beginners and for anyone who has used Scottrade,
TD Ameritrade or any other big brokerage firm. The design is not intuitive at all, and even simple things like stock order entry,
takes too long to complete. On the other hand, it is loaded with features, for example, allowing the construction of a spread with up to eight legs.
The firm developed an excellent mobile application that offers the majority of the features of their stand-alone program and it works on just about any mobile device.
- Very low stock and ETF commissions
- Selling mutual funds is free
- No inactivity or account maintenance fees
- No-fee IRAs
- Free trading simulator (virtual trading)
- Lots of learning materials for investors, including webinars
- Powerful, feature-rich trading tools
- Excellent research amenities and customer service
- Additional 1.5 cents per share surcharge on extended hours trades
- Additional $0.0005 per share on the entire order for any stocks priced less than $1
TradeMonster Review Summary
TradeMonster offers powerful, browser-based trading tools especially beneficial for options traders. The firm provides very good pricing for
mutual fund investors - $15 to buy a mutual fund and free to sell - and for options traders who trade a lot of contracts per order: $0.50 per
contract with a minimum of $12.50 for single leg orders. Their stock and ETF rates are also very cheap at $4.95 per trade.
There is, however, a 1.5 cent per share surcharge on extended hours trades and a $0.0005 per share fee on stocks priced under $1. This makes extended hours and
penny stocks trading prohibitively expensive.
In 2014 Barron’s magazine rated TradeMonster 4.5 stars (the highest rating), and gave them the best scores in Mobile Technology, Trading Experience, Usability, Research Amenities,
and in Customer Service and Education categories. They also got the second highest score in Portfolio Analysis and Reports category. The firm was rated the "Best for Options Traders".
One of TradeMonster's best features is ability to practice trading stocks or options with virtual money,
using all of the tools available. Another interesting feature is Exit Plan, where users create exit strategies for their trades
by focusing on profit targets, and by monitoring their stop-loss and exit points.
TradeMonster is a brokerage targeting options traders as its main customers. The firm developed its trading interface with
them in mind. Also, no other company is rolling out
new features and updates to existing tools more often then TradeMonster, making it one of the most innovative firms in the industry.
In spring of 2014 TradeMonster announced its merger with another discount broker - Optionshouse (review).
This merger will create the seventh largest online broker in the country and it's very likely going to be the cheapest company among big brokerage houses.
We recommend TradeMonster to options traders: on this group the company concentrated the majority of its efforts. In 2014 the company also drastically slashed
its stock and ETF commissions making it very attractive to stock traders too. Investors who do not hold mutual funds for years will love TradeMonster's
$0 commission on sale of mutual funds.
Reviewed by Brokerage Review on
Reviewed by Editor and TradeMonster customers.