tradeMONSTER review

tradeMONSTER Review

tradeMONSTER has been around since October 2008 and is one of the newest competitors in the discount broker world. The service is owned by financial media company optionMONSTER, a company that publishes financial market analysis and commentary. You might be familiar with the optionMONSTER co-founders Jon Najarian and Pete Najarian, or Dirk Mueller. The Najarian brothers are regular contributors to CNBC, Pete is on Fast Money all the time. Look for big things from tradeMONSTER in the next few years as they grow in popularity among advanced investors.

What they offer: Mid range prices, powerful options trading tools, innovative browser based platform, the ability to open a practice account and use all their advanced features for free, and top notch options trading tools (see below). They have recently added mobile trading to their list of features.

PROS CONS
  • Powerful intuitive & customizable browser-based trading platform.
  • Very highly qualified and knowledgeable support staff.
  • No need to download software.
  • Margin rates as low as 2.5%
  • No ability to select a tax lot when closing a position.
  • Lacks education resources in some areas.
  • No trading community atmosphere   (but you can tweet your trades).

The Verdict: tradeMONSTER is likely the best unknown brokerage out there. They offer great value for the commissions you pay, and they already have a loyal pack of enthusiastic users that swear by using their platform tools. Here’s the gist – It costs nothing to set up a paperTRADE account, and we’re willing to bet you’ll be impressed with the tools you’ll see in there if you take the time to give it a look.

Where to join: Get $250 when you transfer your account to tradeMONSTER!

In-Depth tradeMONSTER Review

Setting Up An Account:

Opening an account is 100% online. It takes 5-10 minutes to fill in 3 screens with your information. There is no minimum to open a paperTRADE account, which gets you access to all the features of a full account. There is a $2,000 minimum (cash or stocks) to open a real trading account.

Open An Account

Fees/Commissions:

Stocks: $7.50 per trade.
Single-Leg Options: $0.50 per contract ($12.50 min)
Multi-Leg Options: $0.50 per contract ($7.50 min)
Mutual funds: $15 to buy, $0 to sell
Bonds: $15
Margin: Base + 3.25% (goes down to Base plus 2.5% if you hold >$50,000)
No additional charge for broker assisted trades.
No monthly platform fees or inactivity fees.
$50 for outbound ACAT.

Investments Offered:

Stocks, options, ETFs, over 500 mutual funds, fixed income investments.

Ease Of Use:

Easily one of the best reasons to use tradeMONSTER is it’s customizable platform. It’s intuitive, easy to make your own, and a dream to maneuver. If you prefer browser based platforms you’ll enjoy tradeMONSTER.

Trading/Investment Tools:

  • Free streaming real-time quotes, charts and option chains.
  • paperTRADE is free and can help you execute new strategies before you try the real thing
  • adjustTRADE manager helps you examine how you can protect a stock position, bring in additional portfolio income, or exit a trade.
  • tradeCYCLE is a tool that illustrates the steps a disciplined trader should follow when choosing a trade. It includes steps such that utilize research tools, strategy-selection tools, ways to test strategies and exit planning, and is very important to what the guys at tradeMONSTER call “proactive investing”.
  • strategySEEK allows you to go from symbol to choosing a good strategy lightning quick. It takes your forecast & risk strategy and seeks out the options strategy that best suits your needs.
  • tradeLAB snapshot and spectral analysis helps you do your due diligence on a trades by showing you a visual representation of the possible outcomes of each option trade.
  • Exit Plan helps you see the possible ways to minimize losses and lock in games by highlighting different possible exit strategies.
  • Great charting features that include streaming implied volatility for every expiration and strike price, displayed vs. a 30 day moving average.
  • Trading journal to keep track of your trades and what you were thinking when you made them – very useful if you’re an active trader.

Take a look at some of the tools in action in this 6 minute overview of paperTRADE.

Customer Service/Support:

24/7 help line.
tradeMONSTER employs top notch customer service reps, most of which they claim are ex-floor traders, and all are series 7 registered brokers.

Awards:

“Best for Options Traders” (Barron’s 2010 & 2011)
4 stars for research amenities (Barron’s 2010)
4.5 Stars (highest rated) for Portfolio Analysis and Report features (Barron’s 2010)

The Final Word…

If you’re a seasoned technical analysis trader shopping around for a new broker, tradeMONSTER is one of your your best bets. We wouldn’t recommend it for beginners, fundamental analysis or long term investors. OptionsHouse offers similar functionality for trading options for a slightly lower price.

Open An Account

Current tradeMONSTER Promo Codes:

Open a tradeMONSTER account and trade commission FREE for 30 days
Open an account today and tradeMONSTER will cover up to $250 in transfer fees

Check here for more promotions.

Also Read: tradeMONSTER reviews by Kipplingers, SmartMoney and Barrons.

Disclosure: Some of the links included in our reviews are affiliate links. This means if you click on the link and purchase the item, we will receive a commission.

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