TradeKing Advisors Reviews

TradeKing Advisors launched in 2014 and has undergone many changes since then.Based onTradeKing Advisors reviews, they focused on keeping consumers top of mind, which resulted inlowered management fees and account minimums as well as a diversified portfolio to include business selections that you won’t typically see in a robo-advisor.

Investors pay 0.25% in management costs, or$1 monthly if the balance is under $5,000.The minimum amount to open an account is $500, and TradeKing offers an option to make deposits to build upto that amount for new investors who need to come up with the cash.

The firm offers upto17 asset classes in their portfolio and allows customers to diversify over a range of different account types.

The brand, along with online broker TradeKing were purchased by Ally Financial in 2016 and are in the process of moving to ally.com.During the transition, users can still enroll with TradeKing Advisors, and once it’s complete, you’ll have access to a new mobile app and 24/7 customer service through the website.

Here, we’ll summarize what you need to know about TradeKing Advisors reviews and provide details on their product, how it works, and who is a good potential investor.

At A Glance Summary of TradeKing Advisors

Here we’ll highlight the basics details you need to understand about this online investment management option.

Account Basics

  • TradeKing Advisors offers low account fees for their clients.
  • If your balance is under $5,000, you pay $1per month.
  • Accounts with a balance of $5,000 or more pay 0.25% annually.
  • Average expense ratio on exchange-traded funds is 0.17%
  • There is a $50 fee if you’re closing an IRA
  • Investors payno fee to close a brokerage account
  • There is a $500 minimum investment to open an account.
  • TradeKing portfolios can include exchange traded funds (ETFs) and exchange traded notes (ETNs) from 17 asset classes.
  • The platform supports the following types of accounts:
  • Non-retirement individual and joint accounts
  • IRA’s including Roth, SIMPLE, SEP, rollover, and traditional
  • Trusts
  • UTMA and Coverdell accounts
  • Business accounts
  • Automatic rebalancing is a free service included with account enrollment.
  • There are no tax strategy services offered.

Investment Information

Investors with Traducing Advisors can choose from five different portfolio choices that include options that range from conservative to aggressive and incorporate up to 17 asset classes.Types of assets may include fixed-income securities that are domestic or foreign, real estate, and equities.The service provides daily monitoring and re-balancing of all portfolios.

How it Works

TradeKing Advisors services their clients through a combination of features.First, they have a business relationship with the registered investment advisor Ibbotson Associates through their partnership with Morningstar.This means that although TradeKing Advisors is a relatively new firm with a small client base, they have the expertise of a company in Ibbotson Associates that has a proven track record and manages over $105 billion in assets.

Ibbotson Associates services the investment portfolios managed by TradeKing Advisors, regularly providing reviews and updates to the exchange-traded pieces.

Features

There are several areas where TradeKing Advisors offer some unique features that make them a good choice for a range of investors.Here are some highlights.

Risk Assessment

When you open a new account with TradeKing, the first thing you’ll do is complete their risk assessment.The survey, developed by their experienced partner Ibbotson, help to determine the risk tolerance and goals of a new investor to best choose the right investment strategy.The questions cover a variety of topics, including your comfort level with losses and fluctuations, and your investment time horizon.Based on these questions, users get a portfolio recommendation that includes the complete details about the asset allocation.

Unique Account Options

Most robo-advisors stick with individual and joint investment accounts. At TradeKing, you can also invest as an LLC, a sole proprietorship, partnership, or as a corporate entity.

TradeKing and Ally Integration

Currently, account holders with TradeKing can open their advisor’s account and have access toan online platform that makes it easy to see all their transactions in one place.Once the switch is made to Ally, this will hold true for account holders there as well.

The platforms are mobile friendly, and will eventually grow to include an app for one-stop management.

Potential Drawbacks

While TradeKing Advisors is a strong choice for robo-investing, there are a few subsets of customers who might not be the best fit.Here are a few things to consider.

Account Fees for Smaller Accounts

TradeKing Advisors has made recent changes to their fee structure, making the product more attractive than it’s been in the past.Clients who maintain balances of $5,000 or more pay 0.25% annually, which is right on par with what other online advisors are charging.

However, investors who have less than $5,000 in the game are paying a much higher ratio if you look at the $1 monthly fee as a percent compared to the assets under management.For example, if you invest just the $500 minimum, you’ll pay 2.4% in fees annually.Only customers who have an account balance of $4,800 or above will break even at the 0.25% annual fee.

Additional Fees for Added Services

Many online advisors include additional services free of charge to their clients, but at TradeKing, you’ll pay for them.For example, clients with $5,000 or more invested with the firm can add the Risk Assist feature to their account.This valuable add-on helps to manage severe market declines like what we saw in 2008 by automatically shifting asset allocation out of equities and into safe investments, like fixed-income EFT’s during those periods.The algorithm then monitors the climate and will shift back as the market recovers.

While this is an optional feature, it costs an additional 0.50% annually, which would bring your total management cost to 0.75%, a very high price to pay for that peace of mind.

The company also doesn’t offer any tax-loss harvesting feature at all, so if you want that service, you would have to enlist and pay for, the help of an expert outside the firm.

Who Would Benefit

Despite the handful of drawbacks, TradeKing Advisors is an attractive choice for a variety of investors. If you currently hold a TradeKing online broker account or have a business account that you would like to make investments on behalf of, this is a strong choice for you.This robo-advisor is also very friendly to investors who don’t want to actively participate in the day to day of managing and allocating their funds.The daily automatic re-balancing feature can help you be successful without needing to keep a constant eye on your accounts.

Final Thoughts

When compared with all the online investment options out there, TradeKing advisor reviews show that this product is a competitive choice for someone with $5,000 or more to invest.Also, loyal TradeKing customers are strong prospects because of the simple way the accounts are housed all on one platform.

Investors with less than $5,000, or large investors who need tax loss harvesting might want to look elsewhere to avoid paying high fees or missing out on potential services offered by competitor robo-advisors.

About the Author HarryC

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