When it comes to choosing the best broker to place your investment with, it can be a very daunting affair and undoubtedly overwhelming.
There are literally hundreds of firms who will take your money without hesitation.
Later you may find that there are hidden fees and clauses relating to your investment, which will make you wish you had kept your money under your pillow!
Is TradeKing safe? And more importantly: is TradeKing legit?
Here our experts dive deep into the pros and cons of the platform to bring you an unbiased TradeKing review of the company. We have done the all the important research and formed our own opinions.
This is not to say that you should not also do a lot of research before deciding where to invest your well-earned money. After reading our article we hope that you will be able to make an educated guess with better information on investments.
The following quick video explains why you should consider TradeKing:
Is TradeKing good as far as helping its investors goes? From 2010 to 2012 TradeKing was rated as the number one company in Customer-friendly Service. TradeKing prides themselves on being able to sort out your problem in record time.
All calls are answered in a matter of a few seconds. The support is available from Sunday at 10 am through to Friday at 5 pm with staff ready to talk to you about any problem or query you may have. Should you prefer to discuss anything online there is a chat line, which is available from Monday to Friday, 8 am–6 pm. The staff is quick to respond and is very knowledgeable about investments.
On their website the company states that it is their goal to respond to any email query within 2 hours within normal banking hours. On their trading site they also have an FAQ section where you can enter specific details about your problem. There is also a live chat section where you can chat to a representative right away.
Is TradeKing Legit And Safe?
Purely because it announces that it is a discount online brokerage firm, it would set people thinking that it might be a scam company. It is true that it is a relatively new player in the trading market but it is one of the ten largest discount brokers in the US with a staggering 500,000 amount of accounts and more than $3 billion in assets.
Any company of that magnitude will not have reached that level with devious practises or by taking advantage of its investors. As for safety, research shows that no company is 100% safe and businesses regularly file for bankruptcy for any reason.
The SEC (Securities and Exchange Commission) regulates and monitors TradeKing, whose goal is to ensure that any public traded securities along with the firms who trade them adhere strictly to rules,which govern them.
We have found that unscrupulous people have been found in any number of businesses and certainly more so in places where a lot of money is changing hands.
TradeKing has certainly received a fair share of complaints from individuals but overall the company seems to have a positive reputation. Should this not be the case, we believe that investors would 'vote with their feet' and seek to invest their money elsewhere
TradeKing prides itself on the wide selection of online tools which are available free of charge to all investors.
From calculators to in-depth reports and even videos, the investor -- and especially a new investor -- will find they have a wealth of knowledge at their finger tips.
They have recently introduced TradeKing Live, which will enable you to keep on top of the latest market changes and also your investments. The online pricing calculator is able to compare current bid and ask prices with forecast theoretical values.There is also an online trader network, which means that an investor may chat to other traders and compare notes and strategies.
An interesting tool, which is available, is the Probability Calculator where you may calculate the likelihood of reaching your target even before you make a trade.
A must-have for any serious investor is the range of technical analysis tools which are free to use. These tools have a chart pattern recognition facility, as well as price forecasting and invaluable education support.
There is a tax manager where you will be able to keep tabs on your tax obligations and ramifications should you decide to trade.
What really does make TradeKing stand out is the fact that they have a social network. It is called Trader Network and here you may connect with other investors to share your experiences, and ask questions.
They have over 200,000 members in this network so you will undoubtedly be able to get advice and help here about almost anything. You will be able to see what other investors are trading and make decisions based on more experienced views.
This is one thing that they have and other sites do not, and can be a huge bonus for an inexperienced trader. It is certainly a vibrant community of traders! There is a FAQ section, which is designed to help beginners to become familiar with procedures such as Forex and ETF's. This community actively encourages you to participate and at present there are 160 different discussion groups. You can also read the archived material and even start your own group.
One thing about this forum is that you do not need to open an account to be able to use it. This is wonderful news for newbies who have yet to make up their minds about investing. Newbies are welcomed into the community and they will find plenty of active users who are willing to talk them through situations.
Of course, if you have made a mistake in a trade you will be able to talk it through with other investors who would be able to advise you on a different strategy for the next time.
Best For What Type Of Investor?
TradeKing operates best for investors who have some basic knowledge of investing. We have found that it is a great platform for people wanting to workout their own strategies and who have a good understanding of markets. TradeKing will work well for active traders and also fee conscious investors.
It may not be the best online trading site for beginners who realistically need assistance along the way. Although there is a FAQ section, it is assumed that anyone who opens an account with them will have a fair amount of knowledge about trading.
On the other hand neither does it seem to be suitable to investors who want to become more involved in futures contracts. In both of these situations you might be better off looking at other trading sites.
TradeKing makes it very easy to invest, as there are no account minimums to get you started. Because of this TradeKing does not offer a demo account. Be aware that you will need one commission trade per year to avoid the inactivity charge of $50. You will also need a $2,500 account balance.
When we did our research we found that TradeKing's fees were straightforward and also one of the lowest on the market. Opening an account is very easy and takes approximately ten minutes.
You must have a US address and regardless of which brokerage you choose you need to maintain a minimum balance of $2,000 for a margin account. Funding is easy and can be done by wire transfers, electronic transfers and even by writing a check. Within a few days you will be ready to trade!
A great assortment of services is available through TradeKing and these range from Mutual Funds and Stocks to EFT's and Option Contracts. They even have a service for Penny Stocks where they require a minimum investment of $100 per investment.
This is one aspect that you should research thoroughly before starting, as it is well known that Penny Stocks are a high-risk market where you can quickly lose your investment if you don't know exactly what you are doing.
They offer extended trading hours from 8 am to 9.30 am ET and again after close of business from 4 pm–5 pm ET. When the market closes early the extended hours are from 1 pm–2pm ET.
TradeKing And Your IRA
There are a selection of IRA's that TradeKing offer from a Rollover 401K to Simple IRA and Roth IRA. All these, and other IRA options are extremely well written and explained. There are no annual fees for any TradeKing IRA and as with the rest of their site, there are many powerful tools to help you invest wisely.
When you come to funding your IRA you may use a bank transfer or a check to complete this transaction. This means your money will be transferred right away into your IRA account.
There is a very informative section showing the difference between Traditional IRA's and Roth IRA's which you should be sure to read up on before you transfer any money.
A TradeKing representative will also be available if you want to talk about investing money on behalf of your children. They will be able to show you which account will work the best for yourself and your growing family.
Likewise they are there to advise you of the procedure if you were to leave your job and move your 401K . While this may result in short term tax negotiations you ill find that in the long run the move will save you a considerable tax bill.
TradeKing Forex Review
The TradeKing broker has a good selection of tools to help you make good decisions. The Minimum deposit required to open such an account is quite high and may be off putting to some investors.
In a Tradeking Forex review we found that their tools were not as good as as other sites and not as user-friendly. The platform was considered below average. It was found to lack some of the usability features, which are available elsewhere on the site. There are fewer options for adjusting charts and the dashboard cannot be customized.
We found that it is possible to work with TradeKing while on the go with their iPhone and android apps. It therefore makes trading anywhere a viable possibility, whether it be at a football game or even sitting on the beach!
There is a facility to remain logged on, should you want to make another trade, and this means that you would not have to sign in and out of your account.
Hopefully our research for this TradeKing review here has shown that there are pros and cons for investing with TradeKing. The low trade price of $4.95 is very hard to beat. It may not be one of the best online trading sites for beginners because of the lack of instruction which might be off putting for a newbie, but if you persevere and spend some time learning about what TradeKing has to offer it might well surprise you. As a con we found that TradeKing has no commission free EFT's . The inactivity fee can also discourage future investors.
We recently read that the company will be bought by Ally Bank and we think that in the coming months it will be interesting to see how the assets of both companies are brought together. The combined talents on TradeKing's exceptional customer service and online education coupled with Ally Bank's excellent features and great savings rates could mean that this is a company, which will go from strength to strength.
After reading many TradeKing reviews we feel that for an investor who knows what they are doing TradeKing has a lot to offer and is hard to beat.
TradeKing provides services, which you would expect from a far larger company with higher prices and it would appear that customers who are aware of costs would do well to research TradeKing and invest their money in this company.
For summary please review the table below:
TRADKING OPTIONS - summary
Free Online Tools
Online Customer Support
Free Access To Trader Network
Market Changes Tracker
Online Pricing Calculator