TradeKing Review 2015: Commissions, Fees, and Minimum Deposit
|Stocks and ETFs|| $4.95|
|Options|| $4.95 + $0.65 per contract|
|Mutual funds|| $9.95|
|Bonds|| $1 per bond with $10 minimum, $250 maximum|
|Certificates of Deposit (CDs)|| $24.95|
|Investments|| stocks, options, mutual funds, bonds, CDs, forex, treasuries, ETFs|
|TradeKing minimum deposit to open account|| $0 for cash account, $2,000 for margin account|
TradeKing's new account setup took just 10 minutes to complete. All online forms are very well designed, though some of the questions in our opinion should
be optional. To fund the account, we opted for setting up ACH from a checking account at our bank, which is what most users will do.
To complete ACH setup process, the user must mail, fax, or email (the email option is not mentioned on the website but appears in the email
TradeKing sends after registration) a copy of his/her photo id and a voided check.
We scanned both of these documents and emailed the file to TradeKing. Two days later ACH was ready to be used.
Types of accounts available include Individual, Joint, Custodial, Transfer on Death, Trust, Corporate, Investment Club,
Partnership, LLC, Sole Proprietorship, Traditional, Roth, Rollover IRAs, SEP, Coverdell, and SIMPLE IRA.
TradeKing offers professional-caliber trading tools for stocks, options, ETFs, mutual funds and fixed income
securities. Some of the tools include MarketGrader Research Reports, Maxit Tax Manager, Probability Calculator,
Profit and Loss Calculator, Stock and Option Screeners, Technical Analysis Tools and more. A new alerts center enables clients to
set up alerts that are delivered via both email and text.
The firm also created highly rated mobile trading applications for iPhone, Android, and other smartphones, featuring streaming
quotes and watchlists, the ability to trade stocks and options, set up charts, option chains and alerts.
The company's trading platform called TradeKing LIVE, combines news, streaming charts, options chains, account data,
and a flexible trade ticket. It offers the ability for traders to customize features on the main dashboard, an
enhanced Options Workbench with strategy recognition, and real-time, intraday updates that display cost basis on all stock positions.
The first to introduce social networking into the world of online trading, TradeKing.com now boasts
a vibrant and helpful online investor community called Trader Network. Its users can share experiences,
ideas, strategies, and see what others are trading and how they are performing. They can even gather insights and
analysis from professional traders.
TradeKing Review: Company Pros
- Great commissions
- No minimums, or maintenance or hidden fees
- Free real-time quotes
- Top-rated customer service
- Low margin rates
- Best online investor community
- Fee-free IRAs
- Free DRIPs (dividend reinvestment plans)
- Extensive educational resources
- Low cost professional portfolio management
TradeKing Review: Company Cons
- Additional $0.01 per share on the entire order for stocks priced at less than $2
- $50 annual inactivity fee if BOTH apply to an account(s):
- Combined account value of the household account(s) is less than $2,500
- No commission-charged trades have been executed in the account(s) during the last 12 months
- Shorter after-hours trading: 4:00 pm - 5:00 pm EST, instead of 4:00 pm - 8:00 pm EST
TradeKing Review: Summary
TradeKing is one of our favorite online brokers -- we rated it as one of the Top Brokerage Firms in last five years.
TradeKing does not have minimum account balance requirements or hidden fees. Beginners can place broker-assisted trades for the
same low price of $4.95, and can learn to trade and pick up investing ideas in the website's friendly community.
In May of 2012 TradeKing announced that it was merging with another popular discount broker - Zecco Trading. The merger is now complete, and it created the sixth largest
brokerage house in the United States, with more than 500,000 total accounts. The new company has by far the lowest commissions among big brokerage firms.
Because of the surcharge, TradeKing is not a good fit for trading stocks under $2. There is a number of brokerage firms
that don't have additional commission on penny stock trades.
TradeKing does not have IRA setup, maintenance, or annual fees. There is, however, a $50 inactivity fee if
combined account value of the household account(s) is less than $2,500 AND
no commission-charged trades have been executed in the account(s) during the last 12 months.
The company is a great choice for investors looking to open a no-fee retirement account with a "buy-and-hold" investment strategy
provided they could avoid the inactivity fee.
For anyone who doesn't want to manage their investments themselves and would rather have an investment firm take care
of their money, TradeKing Advisors has a solution. They offer two professionally managed portfolios, called Core and Momentum,
designed by Ibbotson Associates. The fees are a fraction of what is charged by a full service brokerage: 0.25% for
Core portfolios and 0.50% for Momentum.
We strongly recommend TradeKing for all account types. Investors can open a cash account
with no money down and no commitment (non-IRA accounts don't have account closing fees, either).
Reviewed by Brokerage Review on
Reviewed by Editor and TradeKing customers.