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.
- Selling mutual funds is free
- No inactivity, account maintenance or hidden fees
- No-fee IRAs
- Free trading simulator (virtual trading)
- Powerful, feature-rich trading tools
- Excellent research amenities, customer service and education
- 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
- Trading tools are not intuitive and could be hard to master
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.
One of TradeMonster's best features is the option 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 company targeting options traders as its main customers. The firm developed its trading interface with
them in mind, which unfortunately makes it too complicated for the majority of investors.
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 now very attractive to stock traders too.
Reviewed by Brokerage Review on
Reviewed by Editor and TradeMonster customers.