TradeMONSTER Review

TradeMONSTER® is ranked by Barron’s among the best of the best, and is their number one rated broker for options traders. The broker received a 4.5 star rating in the options trader category, and a four-star rating in trade experience, trading technology, research amenities and customer service and education. These are some serious accolades that put TradeMONSTER ahead of some of the best known brokers such as TD Ameritrade, E*Trade, and Charles Schwab. TradeMONSTER is our number one recommended broker for options traders.

The stock order interface is simple, streamlined and efficient. Cancelling or modifying orders takes just a couple of clicks. Closing out existing positions is just as easy. The options order interface is just as impressive, including the full gamut of options order types to quickly define your order based on a specific strategy.

TradeMONSTER has some really slick tools for researching, analyzing, and monitoring your stocks and options. Their streaming platform is browser based and highly customizable to your needs. We are particularly fond of the charting tools, and options analysis tools. The technology behind the trading system has patents pending, and makes the platform truly unique compared to other brokers. The manner in which each piece of the platform is integrated and laid out is quite brilliant.

The fact that the platform is entirely browser based is both a pro and a con depending on how you look at it, and what your needs are. On the bright side you’ll be able to use it pretty much anywhere that you have access to a modern computer with java installed. On the other hand you’re at the mercy of your browser and it’s stability. If you’ve ever had issues with your browser freezing or crashing then you know what we’re getting at. Also, desktop software based platforms tend to have more advanced features and interfaces.

For trading on the go, TradeMONSTER has apps for BlackBerry and iPhone/iPod Touch to keep you on top of your trades and positions on the go. They also have a virtual trading tool called paperTRADE, which let’s you practice your strategies without risking your money.

Commissions are competitive with the best-known brokers with stock trades at $7.50 for unlimited shares, but are not the lowest out there. Considering the tools you get at no extra cost, however, $7.50 is an attractive price. The options pricing is quite good, though, and mutual fund sales are free. If you are not too active of a trader, looking for good trading tools, or you’re big into options trading, then the advantages of the TradeMONSTER platform nicely outweigh the slightly higher commissions.

Customer support is friendly, professional and knowledgeable, and available by phone, email, fax, or live online chat.

Opening a TradeMONSTER Account:

TradeMONSTER has a simple application process that should take 5-10 minutes to complete. The signature process is fully electronic. Account approval is normally instantaneous which will help to get you trading quickly. The minimum funding level is $2000 for all accounts.

Available Equities and Commissions:

• Stocks/ETFs – $7.50 Flat Rate (Unlimited Shares, Broker Assisted – No extra fee!)
• Options – $0.50 per contract ($12.50 min for single leg, $7.50 min for multi-leg)
• Mutual Funds – $15 to buy, FREE to sell
• Bonds – $15 per trade

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Other Details:

Inactivity/Maintenance Fees: None

Direct Access Trading: No

After Hours Trading: Yes, additional $0.015/share

Penson Cleared: Yes

Software Platform Based Data/Trading: Browser based

Web Based Streaming Data: Yes

Level 2 Quotes: Depth View

Online Trading Community: No

Virtual/Paper Trading: Yes

Live Online Chat Support: Yes

Mobile Trading: Yes (Apps available for iPhone/iPod Touch and BlackBerry)

Penny Stock Surcharge: $0.0005/share on stocks priced under $1.00, in addition to normal commission

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TradeMONSTER Account Pros:

-No inactivity/maintenance fees

-Penson cleared

-Flat rate stock commission (unlimited shares)

-Good options and mutual fund commissions

-No extra fee for broker assisted orders

-Mobile trading apps

-Excellent Virtual/Paper trading platform

-Highly rated by Barron’s

TradeMONSTER Account Cons:

-Stock commission isn’t the lowest

-After hours additional fee of $0.015/share

-”Please be advised that effective May 2nd, 2011 tradeMonster will add $0.0005 per share on the entire order for any stocks priced less than $1.00. This is in addition to our standard commission of $7.50 per trade”

The Verdict:

TradeMONSTER is Barron’s number one rated online brokerage for options traders, and we have to agree with them. The unique research and monitoring tools, order entry interface, and excellent commissions on options seal the deal. The $7.50 flat rate for stocks/ETFs, while not the lowest, is competitive with the best known brokers, and gets you a lot of features for the money. With no IRA fees and low mutual fund fees, TradeMONSTER is also good for retirement accounts.

- TradeMONSTER Sign-up Promotion -

Click one of our links to open a TradeMONSTER account today and they’ll cover your old broker’s account transfer fees up to $250. Requires full account transfer for $3,000 or more. Offer applies to new accounts first time funding only. One offer per household. See TradeMONSTER’s website for details.

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Basic Details:

• Inactivity Fees: None
• Minimum to Open: $2000
• Stock Commission: $7.50
• Penny Stock Friendly: No