TradeKing Review

TradeKing® is a highly rated online broker that has won several awards from various investing publishers for both its trading tools and customer service. They offer a super low stock commission of $4.95 (Note: this applies to stocks over $1). TradeKing allows you to trade many different securities such as stocks, options, mutual funds, bonds, ETFs, treasuries and CDs. They also offer many different account types to fit just about anyone’s needs. TradeKing is a great choice for IRA accounts because there are no setup or maintenance fees, and they offer free dividend reinvestment. Options traders will also be happy with the low $4.95 + $0.65/contract for up to 8 contracts, and an even more attractive commission of $.15 per contract + $8.95 base for more than 8 contracts. They will also enjoy a streamlined order interface, and an impressive array of order types.

The built in tools for quotes, charts, research and more are easy to use, but you’ll have to contact support to enable level 2 quotes. The charts are large and nicely generated, allowing for many optional indicators and trendline drawing. Custom chart configurations can be saved for future use. Order entry is arranged nicely and allows for quick input and modification of orders.

Mobile trading is now available via dedicated mobile apps for iPhone/iPod Touch, and BlackBerry devices. The apps for the apple devices were just recently released in January 2011 and allow clients to check in on their portfolio, enter and modify stock and options trades, check watchlists, news, charts and quotes. New apps for Android and iPad are coming soon!

TradeKing has a built in online community for investors to share ideas, stock picks and information. This is a great feature, especially for beginners as it helps them learn the “tricks of the trade” faster.

This is a great broker for most traditional traders, options traders, and for IRA accounts, but if you are looking to trade penny stocks at all, look elsewhere such as ChoiceTrade. First, they don’t even allow purchases on stocks under a penny. Second, for stocks under $1 they charge an additional .01/share up to 5% of the trade value. If you don’t want to trade penny stocks then TradeKing is an excellent option.

Customer support is award winning and available by phone, email, and live online chat.

Opening a TradeKing Account:

The application process is quick and painless. You should be able to complete it in 5-10 minutes. If all is in order, your account should be approved by the next business day, after which you can set up an ACH or wire transfer to fund your account. ACH setup takes a few days, after which you are ready to make an initial funding transfer. The account setup process at TradeKing isn’t the fastest out there, but it is completely paperless for non-IRA accounts. Unless you are in an absolute rush, we think the few days it takes to get an account set up are well worth it. There is no minimum funding level for a cash account.

 

Available Equities and Commissions:

• Stocks/ETFs – $4.95 (for stocks over $1, Broker Assisted – No extra fee!)
• Options – $4.95 plus $0.65 per contract for 8 or less contracts. $0.15 per contract + $8.95 base for more than 8 contracts.
• Mutual Funds – $14.95
• Bonds – $4.95/bond ($14.95 minimum)
• Treasuries – $24.95 per transaction
• CDs – $24.95 per transaction

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Other Details:

Annual/Maintenance Fees: None

Direct Access Trading: No

After Hours Trading: Yes, no extra fee

Penson Cleared: Yes

Software Platform Based Data/Trading: No

Web Based Streaming Data: Available

Level 2 Quotes: Available

Online Trading Community: Yes

Live Online Chat Support: Yes

Virtual/Paper Trading: No

Mobile Trading: Dedicated apps for iPhone, iPod Touch and BlackBerry devices, as well as a dedicated mobile trading site for web enabled phones.

Penny Stock Surcharge: TRADEKING adds $0.01 per share on the entire order for stocks priced less than $1.00. Maximum commission per order not to exceed 5% of the trade value, with minimum commission of $4.95. Minimum investment of $100 per order in OTCBB and Pink Sheet stocks. TRADEKING does not accept opening trades for stocks below $0.01 per share.

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TradeKing Account Pros:

-Low $4.95 stock commission (for stocks over $1)

-Competitive options commissions, especially when trading more than 8 contracts

-No extra fee for broker assisted trades

-Low bond and mutual fund fees

-Award winning customer service

-Excellent options trading interface and order types

-Mobile Apps for iPhone/iPod Touch and BlackBerry devices

-Online trading community

-No maintenance/inactivity fees

-No fee IRAs -Penson cleared brokerage

-Streaming data and Level 2 quotes available

TradeKing Account Cons:

-Additional surcharge for trading penny stocks

-No virtual trading

The Verdict:

TradeKing offers up an impressive combination of low pricing and award winning customer support and site features. We feel that TradeKing is a superb choice for most traditional traders, options traders, as well as those looking for a low cost IRA including mutual fund investments. Those looking for virtual trading or to trade penny stocks should look elsewhere, however, such as ChoiceTrade. Otherwise, TradeKing is on the upper end of our Top 5 recommended online brokerages.

- TradeKing Sign-up Promotion -

 

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Basic Details:

• Penny Stock Friendly: No
• Stock Commission: $4.95 (for stocks over $1)
• Minimum to Open: None
• Inactivity Fees: None