TradeKing Review

Online Brokerage Focusing on Managed Portfolios 

TradeKing is a discount online brokerage that was founded in 2005 with the aim of providing a resource for investors who want guidance in a fresh, unbiased, and affordable way. It was created to make professionally managed portfolios easy and accessible at a reasonable value for individual investors. TradeKing Advisors is their service that was created specifically to give financial guidance to supplement the online brokerage platform. Their advising service works with deeply qualified professionals at Ibbotson Associates, Inc., an SEC-registered investment advisor and wholly owned subsidiary of Morningstar, Inc., to provide asset allocation, portfolio construction and monitoring services.

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Best For: 

Best for investors who want access to professional financial advisors without paying a premium.

TradeKing Highlights

  •  Low fees of $4.95 for stock and ETF trades with no account minimums. Option trades are just $4.95 plus $0.65 per contract
  • Access to a suite of research and trading tools including: S&P Stock Reports, Maxit Tax Manager, Probability Calculator, Profit and Loss Calculator, Stock and Option Screeners, Technical Analysis Tools, and TradeKing LIVE at no additional cost
  • StockBrokers.com ranked TradeKing as the Best Trader Community in 2013 and 2014

Pros

  • Trades as low as $4.95
  • Access to industry experts
  • Full suite of research tools available
  • Award winning customer service

 Cons

  • No provision of proprietary security research
  • Access to only 2 affiliate-managed funds

Security Research

Even though TradeKing does not provide its own proprietary fundamental research, the brokerage offers its clients free access to MarketGrader's research reports. MarketGrader covers over 5,500 publicly listed companies, making it easy for TradeKing’s clients to identify new investment ideas and determine the strengths and weaknesses of each company. Aside from MarketGrader, TradeKing provides clients with detailed information on recent stock upgrades and downgrades while listing the most popular research reports searched by fellow TradeKing clients. TradeKing’s trading platform has an abundance of information on single securities. Their offerings include, but are not limited to: company profiles, historical prices, earnings reports, earnings forecasts, consensus analyst recommendations and insider activity. Additionally, TradeKing hosts a trading blog were users generate research to share on the platform. 

Portfolio Guidance Tools 

TradeKing Advisors service offers professional guidance to investors. Customers will fill out a questionnaire addressing their financial goals, time horizons and risk tolerance. TradeKing Advisors will then create a portfolio using either their core holdings model for a long investing time horizon or their momentum stock model for a short investing time horizon. Customers can change their risk tolerance at any time to change the holdings ratios. This is a great service for investors who have a basic investing strategy but either do not have security specific knowledge, or want to mitigate risk from another portfolio of self-picked securities.

Market Analysis Tools

TradeKing hosts a full suite of tools their customers can use to perform market analysis. Offerings include, but are not limited to: index advancers and decliners, aggregated news and insider activity reports. TradeKing also provides technical analysis tools that include chart pattern recognition, price forecasting and full educational support. 

Fees

TradeKing has a base trading fee for stock trades of $4.95. However they add $0.01 per share on the entire order for stocks priced less than $2.00. The maximum commission per order will not exceed 5% of the trade value, with a minimum commission of $4.95. There is a minimum investment of $100.00 per order for stocks listed on the OTCBB and Pink Sheets.

Quote Data 

TradeKing’s quote service provides data that is up-to-the-second and includes charts, high and low prices, beta, dividend dates, overall options summary for the underlying stock, current news, historical quotes, peer performance comparison and more. There are also quick links to trading screens, option chains, and MarketGrader research. When customers are ready to execute a trade they receive access to streaming data, including last trade, change, bid, ask, volume, news and more. These tools can be extremely effective to deliver an optimal trading experience for investors of any experience level.

Conclusion

TradeKing provides a large range of services that will appeal to any investor. They really appeal to less experienced investors by providing two portfolio guidance model options and a host of trading tools for very competitive trade fees.

About TradeKing 

 

TradeKing launched in December 2005, offering online brokerage services for active stock and option traders. The firm was an early user of social networking for investors and traders, offering free blog support and other Web 2.0-based tools to registered members and account holders. Since inception, TradeKing has provided superior service, and have been the recipients of several awards. TradeKing has been recognized by StockBrokers.com for their online trader community and overall platform. TradeKing was ranked the #1 discount broker in 2006 and 2007 by SmartMoney, the Wall Street Journal's business magazine. In SmartMoney's 2008, 2009, and 2011 surveys, TradeKing finished top-four overall. Their commitment to excellence has made them one of the best online discount brokerages in a fast growing industry.

 

Industry: Online Brokerage

Founded: 2005

CEO: Donato A. Montanaro, Jr.

Founders:  Donato A. Montanaro, Jr., Thomas A. Desmond, Philip A. Claxton and Roberto E. Donovan

Geos: International

Links to social pages:

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