I have asked some people, readers and friends, which discount broker they are using to trade stocks and options and TradeKing was one of a few being constantly mentioned (Scottrade was another). What they told me about TradeKing, and why they like it, is the low commissions, great customer service, and nice website with low cost being the number one reason they chose TradeKing over other discount brokers because they, like me, are small investors who would rather to spend their hard earned money on buying shares than paying high commissions.
Currently, trading stocks and ETFs with TradeKing will cost you $4.95 per trade, whether you place the order yourself online or call TradeKing and ask a trader to help place the order for you (see how you can buy ETFs for free). This is different from most other discount brokers who usually charge much much more for broker-assisted trades.
Options trading commission at TradeKing was until very recently $4.95 + $0.65/contract. The first part of the commission is the base commission which is the same as the commission for stocks and ETFs and the total cost of the trade will be determined largely by the number of contract in the order. Last week, TradeKing restructured its options trading pricing to cut the cost even lower. Now when you trade more than 8 contracts, the commission is automatically lowered to only 15 cents per contract, plus $8.95 per trade, which is the base commission. Under the old pricing schedule, if, for example, you place a 25-contract trade, you used to pay $4.95 + ($0.65 x 25) = $21.20 in total commission. Now, you pay only $8.95 + ($0.15 x 25) = $12.70 commission, which as you can see, is a substantial savings. With the new options trading commission, the more contracts you trade, the more you save.
Are you trading options? What do you think about this new options trading commission from TradeKing?
