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Wells Fargo brokerage / WellsTrade Review 2012
Very high investing/trading costs and terrible registration process
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WellsTarde Review 2011-2012: Commissions, Fees and Investment Products
- Stocks and ETFs: $19.95
- Stocks and ETFs (broker assisted): $45
- 100 commission-free online trades per year and waived fees when linked to a Wells Fargo PMA Package (basically checking account).
PMA package has no monthly service fee for each month the statement-ending balances in qualifying accounts total $25,000. Otherwise it's $30/month.
- Options: $9.95 + $1 per contract
- Mutual funds: $35
- Auction of Treasury Bills, Notes and Bonds: $50 per transaction
- Investment products: stocks, options, mutual funds, bonds, treasury bills, ETFs
- Minimum to open Wellstrade account: $1,000
- All Wellstrade fees
WellsTrade account opening process is the longest we have experienced and it is still done by filling paper forms,
signing and mailing them. With most other brokerage firms you could open account online in 10-20 minutes.
WellsTrade Website (WellsTrade.com)/Trading Tools Review
WellsTrade offers great independent research and education: market commentaries, profiles, S&P Stock Reports and Morningstar® mutual
fund ratings. Charts are less comprehensive than in most other brokerages. The gain/loss information on the positions screen is
not updated right away. Overall, the WellsTrade's trading tools are disappointing.
WellsTrade Pros
- Possibility to trade for free
- Good banking services
- Very good independent research
WellsTrade Cons
- Extremely high commissions if not in PMA program
- For stocks below $1/share commission is greater of $34.95 or 3.5% of principal
- Additional 1.5 cents per share will be charged for more than 1,000 shares
- Understaffed, incompetent customer service
- Terrible trading tools
- Horrible executions; randomly altered limit orders
- High margin rates
- $60 annual account maintenance fee
- $30 annual IRA fee
Wells Fargo Brokerage Review Summary
WellsTrade is a brokerage operation of a well-known Wells Fargo Bank. It is very expensive to invest in or trade
stocks and ETFs with WellsTrade: $19.95 per stock/ETF trade is the HIGHEST rate among online brokerage firms. Mutual funds are also
expensive: $35 per transaction. The company does not have surcharge on extended hours trades but charges huge
commission on penny stock trades and trades with over 1,000 shares. Customers could get 100 free trades per year if brokerage account is linked to Wells Fargo
checking account with at least $25,000 balance (at all times). If balance falls below $25,000, there is $30 monthly fee.
WellsTrade is offering its account holders full range of banking services through its parent company Wells Fargo. The firm provides very
good selection of independent research.
WellsTrade currently has the worst new account registration process of all online stock brokers.
Unlike most other brokerage firms, it charges $60 annual account maintenance fee, and also has very high margin rates and
incompetent customer service. Its trading tools are archaic and slow comparing to competition. There are many instances of limit orders
changing price or being executed even if there is not enough money in the cash account.
There are better brokerage firms for beginner investors than WellsTrade, that offer vibrant online communities where users
could ask questions, learn from more experienced traders and even get investment ideas. Some of them offer virtual trading,
which customers to practice trading without risking money. Check out
our Best Brokers for Beginner Investor recommendations.
We can't recommend using WellsTrade's brokerage account. There are a lot of low-cost, highly-rated
Online Brokerage Firms to choose from, that offer more value to their customers.
WellsTrade
Reviewed by Brokerage Review on
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Rating: 3
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