TradeMONSTER is an online brokerage that has risen quickly in popularity since their inception in 2008. Since we like to talk about ways to make money and invest in the stock market here at Sprout Wealth we thought a TradeMONSTER review would be helpful for those looking to get started investing or for those looking to switch brokerages.
First, we’ll give a brief background on TradeMONSTER. TradeMONSTER was started during the middle of the market decline in 2008 by Peter Najarian. Najarian has held numerous high profile positions within the financial world, focusing specifically on options trading. TradeMONSTER recently made news by cutting their commission price from an already competitive $7.50 per trade to $4.95 per trade.
I will give the disclaimer that neither Grayson nor I have accounts with TradeMONSTER. However, I dealt with them extensively during my career in the online brokerage industry and have worked with their platform quite a bit and have been impressed by both their service and their platform. With that out of the way, let’s get on with the TradeMONSTER review.
How TradeMONSTER Is Different
Even though TradeMONSTER is a newer player in the online brokerage scene, they have managed to carve out a relatively good niche for themselves. While they have some features that are common to most other brokerages they do have some pretty unique features such as:
- TradeMONSTER offers killer pricing. As mentioned previously, the commission at TradeMONSTER is $4.95 per trade. That is only slightly higher than the lowest bigger brokerage out there – Optionshouse which is at $4.75. If you trade options, TradeMONSTER charges a max of $.50 which is very competitive as well.
- TradeMONSTER offers Futures trading. Futures can be incredibly risky, especially if you’re not versed in how they work. Their commission comes in at $1.50 per trade which is half the price you’ll find at Etrade.
- TradeMONSTER is one of the few online brokers that offers paper trading accounts. This allows you to invest and try different things out without fear of losing your shirt in a virtual environment. If you open an account with TradeMONSTER you immediately get access to a virtual account with $100,000.
- TradeMONSTER offers stellar online support. Like Motif Investing, they have made social media a serious part of their strategy to help investors. TradeMONSTER also has numerous blogs and real-time online support to help you when you have the need. This, unfortunately, is not the standard within the industry.
- TradeMONSTER heavily targets those interested in options trading. There are a few other brokerages out there, like Optionshouse and TradeStation which do the same thing. However, TradeMONSTER is regularly recognized as having the best option trading platform in the industry. Add that to the price and they’re hard to beat.
What’s Needed to Open A TradeMONSTER Account?
We’re big fans of brokerages that make it easy for you to start investing and TradeMONSTER does that. With that in mind, there is no minimum opening balance required by TradeMONSTER. This is great if you’re looking to start investing with under $1,000. The point is if you want to start with $500, you can most certainly do that.
As I’ve written before, I hate investment fees. TradeMONSTER holds the same philosophy as there are no account maintenance fees, annual fees or anything like that. Beyond the $4.95 stock commission, and the option price if you trade options, there are no hidden fees to deal with.
Largely due to their age, there is not a whole lot beyond the typical stocks and mutual funds you would find at a larger brokerage like Scottrade. Besides stocks (including ETFs of course) and options, TradeMONSTER also offers the following other investment options:
- Mutual funds
The one thing I will point out about TradeMONSTER is their platform is on the more difficult side to master. A lot of this goes back to their target niche of active/options traders. There is nothing wrong with that, as it is regularly considered one of the top platforms out there by Barron’s. TradeMONSTER does offer live training and resources to learn how to use the platform so that does help. Don’t allow the advanced level to hold you back, but please be aware of it going into your decision.
TradeMONSTER Review – My Take
I think for the right individual TradeMONSTER would be a great option to consider for your investing needs. This is especially the case if you would consider yourself an active trader or if you like options trading. If that is not your cup of tea, I still think it could be a good fit, given their incredibly competitive commission structure. If you’re a buy and hold investor who only invests in index funds then TradeMONSTER may not be the best option out there for you. But, if you like to invest in some individual stocks or do some options trading then TradeMONSTER is definitely worth considering.
I will also mention that TradeMONSTER regularly has promotions like the ability to trade free for 60 days or getting up to $250 in transfer fees credited back, so make sure to take advantage of what fits you best if you do choose to open an account with TradeMONSTER. Sign up now and trade free for 60 days with TradeMONSTER.
Where do you manage your investment accounts? What are you paying for commissions? Do you like to manage investments on your own or pay someone to do it for you?