Tradeking Review October 2008

A few of you responding to the Tradeking Promo post have a requested a more in depth review of Tradeking. Here is what I have put together from my experiences with them over the past 2 years.

Tradeking was founded in December 2005. TradeKing’s founders include the original management team from SureTrade Inc. I used to use SureTrade prior to them being sold to Quick & Reilly. SureTrade back then was a pioneer in cheaper trades. I remember they offered all trades for $7.95. This alone was enough to make me feel secure about their operation. Anyone can create a online brokerage site, but to have spun off a successful discount brokerage site in the past, that makes me secure in giving them my money.

Commission and Fees:
Tradeking has one of the lowest commissions for an online stock broker out there. All trades are $4.95. This includes limit orders as well. A few brokers out there charge extra for limit orders, which is what most people use, so it is nice to see Tradeking have one flat fee for all trades. Stock Options are $4.95 plus $.65 for each option contract. So for example if you bought or sold 2 option contract2 it would cost you $6.25 ( $4.95 + 2 ($.65)). There are no minimum opening balances, and also no maintenance or inactivity fees to worry about, another difference between them and places like Etrade which hit you with an inactivity fee every quarter.

Dividend Reinvestment:
This is another service that differentiates Tradeking from the other guys. They offer free automatic dividend reinvestment, with the ability to purchase fractional shares. If you are a dividend investor you can see the value here. No more trying to find a place to invest that dividend. Just role it back into the same stock for free. The setting is configurable for all your stock holdings, or just specific ones.

Customer Service:
They offer a few ways to contact their customer service department.

• Online Chat (Available 8am – 6pm EST, Monday – Friday)
• Email – service@tradeking.com
• Telephone – 877.495.5464

I only had to contact their service department one time, which I did via telephone and was speaking to an agent in less than 4 minutes. TradeKing ranked fourth out of 12 firms, ahead of E*Trade , OptionsHouse, and TD Ameritrade, and significantly higher than OptionsXpress and Scottrade in a review of online brokers’ customer service centers performed by Kiplinger and ranked #1 by SmartMoney.

Automated Funds Transfer:
Tradeking allows you to link up a checking account to transfer money in and out of your account via ACH deposits and withdrawals. One thing to note is that ACH deposits are subject to a trading hold of 5 business days and cannot be withdrawn for 10 business days.

Trading Interface:
Tradekings menu’s and Trading Interface is very straightforward and very responsive. I have read many reviews of people complaining about trade lag time, but I have yet to experience this in the long while I have been using my account. I am an avid options trader and their options trading interface is one of the simpler interfaces I have seen which is good for the beginning option trader.

Cash Account:
Like all online brokers, uninvested money in your account earns minimal interest. Tradeking has a Money Market sweep option that will get you earning around 1% (this will change based on market conditions) interest. All you need to do is email them after you open an account asking them to enable the money market sweep for your account. When I signed up for the account 2 years ago the rate was at 4%, so it will move with the market.

Overall Tradeking has served me well and I am very happy with the service. Short of the long transfer times for new deposits, Tradeking gives me everything I need to be a successful investor. I definetly recomend them to anyone looking to start investing online. And with all the cheap stocks available today, now is definetly the time to get going!

Currently there is a $50 Tradeking promo code bonus available. Click here HERE for more detail.

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NOTE: For posts that contain bonuses, be sure to read the post for bonus expiration dates. Links may work but the bonus may have expired.

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