Interested in opening a stock brokerage account? Look no further than TradeKing. Although it’s not as well known as its competitors E-Trade and Scottrade, its user interface can certainly hold its own against them. And, it consistently ranks near the top of the customer satisfaction ratings.
TradeKing is a great platform for investors looking for a simple online brokerage account to execute their own straightforward investment strategies. TradeKing offers a wide assortment of investment possibilities including: Stocks, Mutual Funds, ETFs, and Fixed Income Securities. It also offers six different IRA investments. If you’re unsure of which one is best for you, there’s a comparison chart on the TradeKing FAQ page to help you decide. Additionally, if you’re interested in Forex trading, TradeKing has an extremely helpful “Forex for Dummies” explanation on its website.
In fact, TradeKing invites you into the Forex trading world right on its homepage. You’re then brought to a specific platform that spells out exactly how Forex trading works. If you’re someone with a basic understanding of markets and security types, this platform is a great low-cost alternative to some of the more popular and widely advertised brokerages.
TradeKing has straightforward pricing and boasts one of the lowest on the market:
Stock and ETFs: $4.95 per trade
Options: $4.95 plus $0.65 per contract
Mutual funds: $0 to buy or sell load mutual funds and $9.95 to buy or sell no load mutual funds. The one cent surcharge is per share of any stock under $2 and is somewhat of a testament to the volatility of the penny stock market (also known as pink sheets or over-the-counter bulletin board). TradeKing requires a minimum investment of $100 per order in penny stocks and doesn’t accept opening trades below one cent per share. Don’t let the seemingly harmless name of penny stocks fool you. It’s a high-risk market where you can lose your shirt and a lot more if you don’t know what you’re doing.
Opening a TradeKing account is easy and takes just about 10 minutes (you must have a U.S. address). There are no account minimums unless you have a margin account (which is governed by federal regulation). Regardless of the brokerage you choose, you must maintain a minimum of $2,000 for any margin account.
You can fund your account in a variety of ways, including wire transfers, an electronic transfer from your bank, or the good, old-fashioned way – with a check. The signup process for TradeKing is easy, but funding can take up to seven days. Within a few days, your account will be up and running. You’ll be able to dive right into the market and start trading.
For mobile trading, they offer customers iOS and Android smartphone apps. Additionally, TradeKing Live is designed for mobile devices as well.
TradeKing has great pricing, their customer service is well informed and friendly, and they provide online education. For a discount stock broker, this is one of the best options available.