Review of WellsTrade
While WellsTrade may not be the most popular brokerage, it offers some competitive investment services. Let's see how it stacks up against your current brokerage.
Investments and Accounts
WellsTrade provides both self-directed and managed accounts. For managed portfolios, they offer a robo-advisor called Intuitive Investor® which charges an annual fee of 0.35% and invests in low-cost ETFs without trading commissions. Wells Fargo customers may get a small discount. This program requires a minimum investment of $5,000. You can get limited investment advice over the phone from licensed advisors.
There's also a traditional service offered through Wells Fargo Securities that allows for a personalized advisory relationship at a Wells Fargo branch. This service's fees depend on the account size and assets chosen. You can compare these costs to competitive financial advisors in your area.
For those who prefer to manage their investments themselves, WellsTrade offers self-directed accounts including IRAs, individual and joint taxable accounts, solo 401(k) plans, and Coverdell education accounts.
Here's what you can trade on your own:
- Fixed-income securities
- Stocks
- Options
- ETFs
- Closed-end funds
- Mutual funds
These self-directed accounts don't have ongoing fees or minimum balance requirements.
Cash Management Features
Despite being part of Wells Fargo, WellsTrade lacks strong banking tools. It doesn't offer a debit card or checkbook, which means no ATM fee refunds.
You can link a Wells Fargo checking or savings account to your WellsTrade account for unified access. Some banking tools, like a free monthly FICO score and Zelle transfers, are available even without a bank account.
Website Trading
WellsTrade's website is straightforward and user-friendly.
You can search for stocks using the search field in the upper-right corner of the site, which provides quick access to graphs, options chains, alerts, detailed info, and a trading button.
The trading interface offers four order types:
- Market
- Limit
- Stop
- Stop limit
Additionally, you can choose "all or none" for order fulfillment and select between GTC (Good 'Til Canceled) or day for order duration. Options and mutual funds have specialized order forms accessible via tabs above the stock order ticket.
The website’s charts can't be fully expanded across a computer screen, which is a drawback. They offer several plot styles like dots and candlesticks, a few drawing tools, and basic technical studies. You can view price history up to 30 years for securities with available data.
Option chains on the website show basic puts and calls without complex strategies. While you can see volume and open interest, more sophisticated options tools and Greeks are not provided.
Mobile App
The mobile app mirrors the website in terms of trade types and order duration options. It also offers alerts and watchlists. However, its charting capabilities are limited and do not support advanced features like drawing tools or technical indicators.
Notably, the app supports trading options and mutual funds, which is not a universal feature among brokers. It also offers some banking functionalities, such as mobile check deposit.
Other Software
If you’re looking for a comprehensive desktop trading platform, WellsTrade may disappoint as it lacks such offerings. There are no advanced browser platforms either, leaving users with only the basic platforms provided.
Customer Support
WellsTrade's platforms do not include chat support. There is a self-service area on the website that includes useful tools like a tax center and password reset options.
Phone support is available Monday through Friday, from 8 am to midnight EST. No weekend support is provided, and while some Wells Fargo branches may assist with investment services, there are no dedicated WellsTrade branches.
Pricing Schedule
Like many competitors, WellsTrade offers free online stock and ETF trades. A live broker-assisted trade costs $25.
Mutual fund trades cost the same online or with a broker's help at $35 per transaction. Options trades are commission-free, but a per-contract fee of 65 cents applies.
Broker-assisted derivative trades incur a $25 additional fee. Broker-handled exercises and assignments also carry this extra charge.
Margin Borrowing
Most WellsTrade accounts qualify for margin borrowing. Rates are competitive and scale down with higher balances. Households with significant investments receive further discounts.
Research and Education
WellsTrade offers robust screening tools for equities, bonds, mutual funds, and ETFs, but not for all investment types. Advanced filters are available, especially for mutual funds.
The broker also provides a wealth of educational content and market analysis under the Research tab, accessible through in-depth articles and news updates.
Stock and mutual fund profiles include expert analysis and investment recommendations.
Find a Financial Advisor
If you are looking for a professional money management service in your area, you can
find a Financial Advisor on the Wiser Advisor
(or read
Wiser Advisor review).
Visit Wiser Advisor
Miscellaneous Services
DRIP Availability: WellsTrade allows dividend reinvestment but requires a phone call to set up.
Initial Public Offerings: IPOs are not available through WellsTrade. We suggest checking out Webull for IPOs.
Fractional Shares: WellsTrade does not support fractional share trading.
Recurring Mutual Fund Purchases: Available via telephone enrollment.
Extended Hours Trading: After-hours trading is supported, but there's no pre-market session.
Individual Retirement Accounts: WellsTrade offers various IRAs, but closing an IRA incurs a fee.
Recommendations
Retirement Savers and Long-Term Investors: WellsTrade's robust retirement services and investment management options make it a strong choice for those planning for retirement.
Beginning Investors: The robo-advisor is beginner-friendly, offering access to professional advice. However, the self-directed platform may not suit all novices.
Charles Schwab might be a better fit for those starting out.
Small Accounts: The $5,000 minimum for the robo-advisor is high. Consider Robinhood for a more accessible entry point.
Mutual Funds: WellsTrade offers a wide range of mutual funds and has excellent screening tools, making it a good option for mutual fund investors.
Firstrade also offers a large selection of commission-free mutual funds.
ETF and Stock Trading: The lack of advanced trading platforms may be a limitation for some investors.
Charles Schwab provides more comprehensive trading tools and resources.
Free Charles Schwab Account
Visit Schwab Website
WellsTrade Review Verdict
WellsTrade may not surpass your current brokerage in many areas, but it excels in mutual funds and portfolio management. However, improvements are needed in customer service, software, cash management, and margin rates.
WellsTrade IRA Fees
| Fee |
Amount |
| WellsTrade IRA setup fee |
$0 |
| WellsTrade annual IRA fee |
$30. Coverdell Education Savings Account annual fee: $20. Command Asset Program/Command Asset Program for IRAs: $125 |
| WellsTrade IRA termination fee |
$49.95 |
| WellsTrade account inactivity fee |
$0 |
| WellsTrade outbound full account transfer (ACAT) fee |
$49.95 |
Updated on 7/19/2024.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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