Fees and Deposit Limits9.0 /10
Ease of Use9.0 /10
Account Types and Services7.0 /10
Budget Flexibility8.0 /10
- Fully automated investment platform with a touch of flexibility in choosing portfolios
- Low minimum deposit and low fees
- Impressive asset classes, including commodities and real estate
- Tax loss harvesting is not available
- Management fee for core portfolios is a bit steep
TradeKing Advisors Review 2018
Welcome to our TradeKing Advisors review. TradeKing is a fairly new entrant for 2018, and it offers a fully automated platform with a tad more flexibility than the established players. TradeKing is recognized as one of the best discount brokerages online, and there is a lot of anticipation on whether TradeKing Advisors will live up to the hype.
TradeKing Advisors is perfect for hands-off investors and business accounts.
But we have some good news for you. TradeKing Advisors has lowered the account minimum twice since the launch of the platform, along with a slight reduction in management fees as well. This makes it fairly competitive in the world of Robo Advisors, but how will it stack up in terms of overall performance and value for money?
Fees and Deposit Limits
Let’s start our TradeKing Advisors review by analysing the fees and deposit limits. The standard advisory fee is 0.25% per year for accounts valued at $5,000 or more. For account balances below $5,000, the fee is $1/month instead of the 0.25% annual fee.
$5,000 or more
TradeKing will NOT charge any account fees and management fees. You only pay annual fees based on your account balance.
As previously mentioned, this Robo Advisor has since lowered the account minimum twice. Now, you can start investing for a minimum balance of $500.
TradeKing Advisors is a fully automated Robo Advisor. If you’re the type of investor who prefers active trading, then this is probably not the best option for you. You can’t make investment selections either, although you are given the ability to fine-tune your risk tolerance in order to make changes to your investment allocations.
But there is a redeeming factor: upon signing up, you are given the chance to choose a portfolio that you think is best for you, even after the service has recommended the best portfolios based on your risk tolerance level.
Ease of Use
Fully automated Robo Advisors are generally easy to use, and TradeKing Advisors in no exception. You simply need to fill out an online questionnaire to establish your personal risk tolerance level. After that, simply transfer the money, and you’re all set. The service will begin recommending investment portfolios, and you can even choose a specific portfolio that you like.
In this regard, it is important to note that TradeKing Advisors utilizes five portfolio levels:
- Moderate Growth
- Aggressive Growth
The service also makes it easier to manage your accounts whether you’re using your computer or mobile device. We tested the platform on our smartphone, and we’re proud to say that the interface was responsive, consistent, and easy enough to understand, even if you are new to online investing.
Account and Investment Types and Services
During the initial launch, TradeKing Advisors offered two main portfolios for all accounts:
- Core Portfolios – The basic portfolio offered by TradeKing, with as many as 17 different asset classes including fixed income securities (domestic and foreign), real estate, and equities. If you have a core portfolio, the dividends will automatically be reinvested. The minimum deposit for a core portfolio is $500.
- Momentum Portfolios – You can think of this as an actively traded portfolio. The account is reviewed each month, and will respond to investment opportunities with bigger returns. This portfolio contains up to 20 asset classes, and the minimum investment is $5,000. Automatic rebalancing also comes standard in this portfolio.
UPDATE: As of this writing, TradeKing Advisors is now only offering Core Portfolios for investors.
The service also offers business accounts for sole proprietors, partnerships, LLCs, and corporations. All accounts come with double insurance protection: the SIPC will cover for up to $500,000 in cash and equities, while Apex Clearing offers up to $37.5 million per customer (including up to $900,000 cash) to protect your investments against broker failure.
But there’s a caveat. The service doesn’t offer tax loss harvesting, which is a shame if you mainly invest in taxable accounts.
Suitability for Different Investment Budgets
It really doesn’t matter if you are a small investor or a seasoned player. If you choose TradeKing Advisors, you can start investing for as low as $500, or enjoy lower fees for larger investments.
However, we have a small issue with the fee structure of the core portfolio. Yes, we like the fact that you can create a core portfolio for a minimum deposit of $500, but what we don’t like is the fee of $1 per month.
For example, if your account balance is $2,000, the annual fee will be $12. That’s roughly 0.48%, which is almost double of what you will pay if your account balance is above $5,000.
We found out that TradeKing Advisors is suitable for both big and small investment budgets, but you need to keep an eye on the fee structure to avoid paying too much.
TradeKing Advisors is perfect for hands-off investors and business accounts. With a low minimum deposit and low maintenance fees, the service also offers an impressive mix of asset classes that includes investments in commodities and real estate. This is good news for both small and newbie investors.
If you want to invest in more than just stocks and bonds, or if you need a managed account for your business, then TradeKing Advisors is definitely worth a try.