If you are interested in online stock trading and have spent any time researching the topic, you will have noticed that TradeKing is often mentioned when discussing fees charged by discount brokers.
The TradeKing platform prides itself on being one of the cheapest options available.
You will understandably want to find out everything about all the TradeKing fees and commissions before you make up your mind and sign up for the account.
We hope that this comprehensive guide will give you a solid understanding as to how this process works!
Without a doubt, Tradeking IS a cheap broker.
It’s important to know that TradeKing has different fees depending on the type of trading you are interested in. For a stock trade you will be charged $4.95 USD per trade. TradeKing options fees are priced differently. These are $0.65 per contract and additionally you will need to add $4.95 per trade. Also worth mentioning is the fact that when you pay $4.95 it’s not restricting you in any way, you pay for as many stocks as you like.
However, if you are interested in Penny stock trading, you might find the TradeKing pricing not as appealing because the costs add up. If you are trading shares that are lower in value than $2 USD for a stock, then the TradeKing will add on extra $0.01 USD per share for the entire order.
Another product that this broker is offering is the IRA (Individual Retirement Investment) account. One feature of the TradeKing IRA account is the fact that there is no annual fee for maintaining you account and added to this there is no account minimum. These features make this option very attractive for people seeking good IRA deals.
In addition TradeKing also offers more than 8,000 mutual funds. They are mainly no-loads and they will cost you $9.95 USD if you decide to buy. They will cost you the same amount if you want to sell.
Should you prefer to invest in loaded bonds, TradeKing will not charge you commission but you will find that they are expensive.
The Fine Print
While on the surface this broker looks like the perfect company to deal with, you are bound to have a question about whether there are any TradeKing hidden fees.
This is a huge consideration when parting with any amount of money and it is worth the effort making sure of these facts before investing and perhaps loosing money.
In this discussion we take into consideration the fact that not all companies are transparent. It is therefore a good idea to pay close attention to fine print and terms and conditions section. We have researched this topic quite thoroughly and we were very pleased to find out that the TradeKing platform is extremely straightforward about any additional costs you might incur.
When writing our TradeKing review we found some things that are worth mentioning. The first one is the inactivity fee.If the total balance of all the TradeKing accounts you have is below $2,500 USD, and in addition you have not generated any commissions through your trades within the last 12 months, you can expect to be charged $50 USD inactivity fee. This amount will be imposed during the first week of the month once both this conditions are met.
TradeKing ensures us that this kind of penalty can be applied only once a year. However, if you are able to use your account this should not be a problem as the fee will be avoided.
Another point you should be aware of are the TradeKing IRA fees for the account termination. If you decide to transfer your account to another broker,TradeKing will charge you $100 USD.
While this might seem reasonable from their point of view, for an average investor to loosing $100 USD might seem excessive. This should be remembered when considering changing into other options.
On the FAQ page TradeKing has clarified this fee and divided it into two smaller fees. The first one is a $50 transfer fee (for transferring the account) and the second one of $50 is for closing the account. They also charge a smaller $10 fee for a partial account transfer.
Our Final Verdict
After doing our research we found that TradeKing fees are very competitive on the market in comparison to other online brokers. Our findings show that their system is good, transparent and cheap.
As an average investor you will have no need to worry about any unexpected surprises. We found that if you were planning on doing penny stock trading, their option might not be the cheapest, you will however be happy with their fees for stock and option trading.
The TradeKing platform is extremely user-friendly and if you are looking for good deals and special offers then they are definitely worth considering.