TradeKing Stock Brokerage Review

Updated November 7, 2009. TradeKing does offer some of the lowest trading commissions around, but at what cost to the overall service?

To my knowledge, TradeKing is a complete ONLINE discount brokerage and you don’t see many commercials or publicizing, so many traders both new and old seem to not know about the brokerage, but this plan allows the company to offer its cheap trading commissions.

Awards and Accolades

• Ranked number 1 in customer service by SmartMoney in 2008
• Number 1 Discount Broker by SmartMoney in 2007
• 4 stars by Barron in both 2007 and 2008
• 5 stars from Kiplinger’s in 2008

Commissions and Pricing

• Stock trades are a flat-fee $4.95 per trade.
• Options trade at $4.95 plus 65 cents per options contract.
• No minimum account fee or inactivity fee.

Details and Summary

Besides stocks and options there are not many other investment vehicles to choose from; however, TradeKing offers various tools and calculators suitable for the average trader and a community forum for their users.

Pros

• Cheap commissions
• Traders’ network (unique social network)
• Trader educational material
• Will cover up to $150 in transfer fees
• Get $50 for every friend you refer

Cons

• In-adequate tools for expert traders
• Must use on screen keyboard to login
• Can’t trade much more than stocks and options

What TradeKing does offer are various solutions based on your needs. If you are new to trading the no account minimums and cheap commissions can help you start without putting aside too much money. If you are an experienced trader, then the cheap commissions can help execute a lot of trades and cut down costs. When it boils down to it, are you willing to giving up some high-end tools and resources in favor of commissions? I say you can get the tools anywhere, but cheap commissions don’t come around too often.

What to do next –

Similar stock brokerages – Zecco, Optionshouse… Find the broker that best meets your needs.