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TradeMonster Review: Trade Free For 60 Days!

TradeMonster

TradeMONSTER is another brokerage that comes in line with many other quality online brokerages that offer solid value at a great price. If you’ve not heard of them then hopefully my TradeMONSTER review will help in the event you might be looking for a new online brokerage. One of the reasons behind my review of TradeMONSTER is they’ve made some recent changes which have made them very competitive within the industry.

To be completely honest, I’ve never had an account with TradeMONSTER though I did deal with them quite a bit in my days in the online brokerage industry and was always impressed in my dealings with them. That allowed me to see a bit into how TradeMONSTER operates and what they have to offer to investors. Before I get on with my TradeMONSTER review, you can check out some of my past reviews below:

A little background on TradeMONSTER, they started at the height of the downturn in the stock market in 2008 and are well known for their award-winning options trading platform.

TradeMonster Features

 

Futures Trading: If you’re looking to trade futures, then TradeMONSTER is a good option to consider. Their pricing comes in at $1.50 per contract which is half of the price you’d find at Etrade and about three quarters of the price you’d find at TD Ameritrade. I don’t personally trade futures, but that price is hard to beat.

Virtual Trading: I’ve written in past reviews about how virtual trading can be helpful as you get started learning how to invest and TradeMONSTER does not disappoint with their offering here. They offer a free paper trading account with $100,000 in virtual money to start with.

Extensive Education: Most online brokerages offer some sort of training or education. Some are free, some are not and the education at TradeMONSTER is free to clients. The thing I like about their education is that they pair it with training on their platforms for free. With the focus they have, you’ll see why the latter is so important.

Free Streaming Quotes: I’ve spoken before about how this is incredibly important to have, especially if you’re a somewhat active trader. Not every brokerage offers free streaming quotes, but TradeMONSTER does, which is important given their bent towards options trading.

Advantages of TradeMonster

 

Great Pricing: One of the bigger benefits to investing with TradeMONSTER is their commission structure. They recently lowered their commission from $7.50 per equity trade to $4.95 per equity trade, which put them at the same playing field as other brokerages like OptionsHouse and TradeKing which is very competitive. They also charge a max of $.50 per option trade which is also very competitive. This lower commission structure definitely makes them a more serious consideration among the other online brokerages out there, especially if pricing is a big selling point for you.

Great for Options Trading: Generally speaking, the usual investor at TradeMONSTER is going to be an options investor. They’re geared towards that and they take it seriously. So much so, they’ve been voted as the best for options trading by Barron’s as having the best options trading platform for the past four years. That said, their platform is a solid one to use.

No Hidden Fees: I HATE paying fees, especially hidden ones and TradeMONSTER does not have any hidden fees. Where TradeKing has a potential annual maintenance fee, TradeMONSTER does not which is not easy to say in the online brokerage space.

Free Online Support: TradeMONSTER has thought along the lines of TradeKing and has created a solid online support presence. They’re active on social media and have several blogs devoted to helping investors with any questions they may have.

Disadvantages of TradeMonster

 

Platform Can Be a Little Difficult to Master: The main challenge that most investors tend to have with TradeMONSTER is that their platform can be a little on the tough side to acclimate to. I believe a good bit of that goes back to their strong focus on options trading, as it tends to be more advanced in nature. I’d also imagine that’s a big part of the reason why they offer training/educational courses on how to use their platform. That said, it’s important to know that going into deciding on a brokerage. If that’s not your cup of tea then another brokerage may be a better option for you.

Limited Hours: The other thing to be aware of when considering TradeMonster is they’re not open 24 hours a day. They’re open from 8:30-6:00 EST Monday through Friday. For many this will not be a detractor, but for some it could be.

TradeMonster review – my take

 

For the right investor, TradeMONSTER could be a great option to look at to do your investing. If you’re more along the lines of a buy and hold investor, you might find the platform to be somewhat of a challenge, though with the new commission price some might find it well worth it. If you’re a more active trader that likes to focus on futures and option trading then it very well could be a great fit for your investing needs, especially considering the price.

Assuming that you’re looking for a better options trading platform then I believe they could be a definite possibility for you to look at for your investing needs. Keep in mind that they do offer promotions to win your business, so if you’re considering TradeMonster make sure to check out my TradeMONSTER promotion code post to see what current promotions they’re offering.


 

How much do you pay for your stock trades? What do you look for in choosing an online brokerage?

 

 

Summary
Reviewer
John Schmoll
Review Date
Reviewed Item
TradeMONSTER
Author Rating
5
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I'm the founder of Frugal Rules, a Dad, husband and veteran of the financial services industry. I'm passionate about helping people learn from my mistakes so that they can enjoy the freedom that comes from living frugally. I'm also a freelance writer, and would love to help out if you have the need. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

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12 Comments

  • I don’t really do much individual investing so I pay nothing for stock trades – for now. I need to start checking out some of these brokerages. In college I used Scottrade and now my work retirement and ESPP is set up through Fidelity. At the very least testing out each brokerage will make for some good content for the site.

    I’m just hanging out with friends, doing some blog work, and watching some Olympic events this weekend. Hope you have a good one!
    DC @ Young Adult Money recently posted…The Weekly Quick Hits RoundupMy Profile

    • John says:

      That it does DC. Getting that first hand experience helps out a ton, especially in doing reviews and such for the site.

      Sounds like a good weekend. We’re going to be returning back to “normal” with our family leaving this afternoon. Being away for two weeks with vacation and family has put me a bit behind. :)

  • I still think I like Scottrade the best, and that’s the route we’re going to go. But Trademonster sounds good too. A mellow weekend here, which is good, because we’ve got a crazy busy week next week. :-)
    Laurie @thefrugalfarmer recently posted…Our Fun and Frugal Valentines Day MenuMy Profile

    • John says:

      You definitely can’t go wrong with Scottrade Laurie. We have a number of accounts with them and are my favorite brokerage. Sounds like a good weekend – we finally return to some normalcy after vacation/family visiting. :)

  • I have Scottrade, so I pay $7 per trade, but I noticed that Trade Kind is $4.95. I might have to check them out.

    • John says:

      I seem to remember you mentioning something about opening an account with Scottrade. TradeKing is $4.95, though they do have a maintenance fee – if your account balance is over $2,500 then it’s waived and not an issue.

  • We’re using Etrade but their trade price is so high compared to others. I may have to make the switch.
    Raquel@Practical Cents recently posted…Three Practical Ways we Saved $520 a Month Last YearMy Profile

    • John says:

      Yes, Etrade is a bit on the higher end of what I’d consider competitive. If you do look to switch, Scottrade would be a good option and $3/trade cheaper. After that you could also consider OptionsXpress (which would get you access to Schwab’s commission free ETFs) or TradeKing – both of which would allow you to save several dollars per trade.

  • Josh says:

    As a new to investing guy, I think a difficult platform would make me want to stay away. However, I appreciate the great review. See ya around John!
    Josh recently posted…Stock Markets Are Down, What We Should Learn From ItMy Profile

  • Sheena says:

    I’d be interested in hearing a review done for Interactive Brokers. I have my account there due to their low margin rates. I don’t think their platforms is very user friendly, but you can’t beat their costs.

    • John says:

      Great suggestion Sheena! I’ll definitely look in to doing a review of them. I agree, they have great rates but have heard their platform isn’t the most user friendly. I dealt with them quite a bit in my brokerage days so I’ll see what I can do about that. Thanks for stopping by! :)

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