Today, I would like to take a look at a newer broker in the marketplace that is making some noise because of its unique features and its famous owners. TradeMONSTER has only been on the scene for a few years but has already attracted a following of dedicated traders. The brokerage is part of the OptionsMonster family which has the corporate philosophy “Invest Like A Monster”.
TradeMONSTER is a broker that you may not be that familiar with as the broker has been around for just a few years. The brokerage firm was started by Pete and Jon Najarian in 2008. If you have ever seen the television show Fast Money then you are familiar with the Najarian brothers. Both brothers are regular contributors on the CNBC trading show.
Stock Trading Fees
TradeMONSTER has a low fee structure that is lower than larger brokers like ETrade, TD Ameritrade, and Charles Schwab. The company offers $7.50 trading fees on all share purchases which is a reasonable rate. Scottrade offers comparable services at a lower rate with its $7 trading structure.
Options trading costs $12.50 for up to 20 trades which is a good price for trading options. The price for 50 options goes up to $25 and $50 for 100 options contracts. This is lower than most of the big brokerages but more expensive than options pricing at TradeKing and OptionsHouse.
Futures pricing at $1.50 a contract is really cheap for those interested in speculating on market movements.
Autotrading is a really unique feature that only TradeMONSTER offers. You can place your portfolio on cruise control by allowing the brokerage to pick trades for you according to your strategy. Here’s how it works.
- You sign up for an investment newsletter on TradeMONSTER
- You register for the AutoTrade feature on the website
- Your account will automatically purchase the recommended investments in the newsletter and sell off the recommended sells in the newsletter.
- Your portfolio will automatically follow the strategy of your favorite newsletter.
No Transfer Fees
TradeMONSTER does not charge transfer fees for anyone that wants to move their account. Most brokers do charge transfer fees which is a real pain because they typically range from $50 to $150. Not having to pay transfer fees is always a good thing for an investor.
No Minimum Balance Requirement
TradeMONSTER does not just have a low minimum balance requirement. There is absolutely no minimum balance requirement. You can open a regular trading account with any dollar amount. I am always a fan of brokers who do not require a minimum.
Options investing is not an easy thing to learn and TradeMonster knows this. The broker has a really good options investor education center. The education and research tools regularly receive high ratings in the industry which has helped the broker earn 4.5 out of 5 stars.
TradeMONSTER’s biggest advantage is the trading platform and trading tools that the site offers. It is one of the easiest sites to use and navigate. It is also pretty easy to find any information that you are looking for on the site. The portfolio analysis tools are useful for helping to locate potential trades that you can benefit from and seeing if your overall portfolio is in balance.
TradeMONSTER is pretty prompt in responding to any inquiries and questions that you may have concerning your account. The broker does a good job in answering questions via email and by phone. This is where I think the smaller size of the broker is beneficial.
Most brokers today have a community of investors and traders that you can network with. TradeMONSTER could benefit by having this sort of community so you could read what other people are saying about potential investment opportunities.
TradeMONSTER is a relatively new broker and does not offer all of the investment options of other companies. TradeMONSTER does offer bond and mutual fund investments but it is not as easy to buy and sell these long term investments directly from the company site. You have to contact customer service for prices and to place orders.
Penny Stock Investing
Penny stock investing at TradeMONSTER is similar to most brokers .There are additional charges involved with any stock purchase below a dollar.
TradeMONSTER’s Grade: B
I really like the AutoTrading feature that the broker offers. I have never tried this before but like the concept because it seems like a real timesaver. I like the fact that you can automate this function. I like the broker for people that are interested in short term trading like Fast Money viewers.
TradeMONSTER makes my list of one of the better new brokers in the market. I would rate it a notch below the Etrade’s and Scottrades of the world for stock trading. I would rate the broker right on par with OptionsHouse and TradeKing for options trading.