If you’ve looked for an online broker for any time at all I’m sure you’ve come across the popular online discount broker TradeKing. But how is TradeKing to invest with?
Fees and Commissions
One of the biggest draws to TradeKing is their low commissions and fees. At the time I’m writing this they charge just $4.95 for all stock and ETF trades, whether they are placed online through their website or working with one of their brokers… a service that many brokers charge $40 or more for.
For options TradeKing charges $0.65 per contract plus a base fee of $4.95 for up to 8 contracts. If you need more than 8 you pay $0.15 per contract but they then charge a base of $8.95 for the transaction.
TradeKing also offers many other investment options like Mutual funds at $9.95 per purchase or sale, CD’s at $24.95 per transaction, Bonds at $4.95 per bond ($14.95 minimum) and treasury securities at $24.95 per transaction.
Disclaimer: Be sure to review all of these fees on the TradeKing website before signing up as they may have changed since the time of this writing.
Customer Service
According to SmartMoney’s broker survey, TradeKing ranked #1 for the third time in 2011… which is a great sign that their customer service will be there for you when you need them.
You can contact TradeKing’s customer service either by phone or through their online chat option (which I personally like) and speak to a trained broker (instead of some call service rep) so feel free to ask complicated questions and put them to the test!
Their customer service hours are 8am – 6pm ET, Monday – Friday which is a little light for my taste (I would like to see them open a little longer to accomodate busy professionals) but they are open an hour and a half before the opening bell and two hours after, so there is some room to get aftermarket questions answered.
Trading Tools
TradeKing’s trading tools feature an assortment of research reports, technical analysis charts, calculators for proft and loss and taxes, and stock and options screeners if you’re looking to narrow down your investment options to a specific set of criteria.
One of the things I like the most is that they have a lot of educational tools specifically geared towards new investors which features articles, videos and webinars to get new investors up and running quickly. Even seasoned investors can learn a thing or two, or check out the glossary for a quick refresher.
Opening An Account
I personally opened an account recently and I can tell you it really could not have been any easier. Opening the account took just a few minutes and I could log in and explore all of the tools and features that TradeKing had to offer.
To fund my account I just securely linked my bank account to TradeKing’s site and did an ACH deposit. The whole process was approved in less than a day and I was able to make a deposit the next morning. Once the money was cleared I was ready to go and placed my first trade very quickly and easily.
If you are interested in opening a TradeKing account click here to sign up today.
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Formerly known as Twentieth Century Mutual Funds, American Century Investments is an investment firm which is privately held. The company serves a variety of groups and individuals such as corporations, individual investors, institutions, and numerous investment professionals. The company philosophy is that the investor’s best interests are their top priority and this belief has fueled their commitment to service excellence where each of their clients is concerned.
The history of American Century Investments
American Century Investments was founded in 1958 in Kansas City, Missouri by James E. Stowers, Jr. and now has over 1,300 employees working in offices in several cities around the world, namely:
- Hong Kong
- Kansas City, MO
- Mountain View, CA
- New York City, NY
- London, England
Today the company offers numerous investment disciplines, all of which are actively managed through a broad assortment of products including commingled trusts, institutional separate accounts, sub-advisory accounts, and of course mutual funds. The company was named the “Best Large Mutual Fund Company” in the US in 2009 (Lipper).
On an interesting side note, due to their battles with cancer, in 1994 Jim and Virginia Stowers established the Stowers Institute for Medical Research dedicating nearly $2 billion (their personal fortune) in order to endow the organization. Roughly 40% of the profits that American Century Investments earns go to the support of further research for cancer, dementia, and diabetes.
Investment products offered
American Century Investments offers a wide variety of investment products for all types of investors. There are 6 primary categories of investment products that they offer such as:
Asset Allocation Portfolios – features professional investment management of single yet broadly diversified funds
Bond and Stock options – a variety of bonds, stocks, and other investment securities that features a do-it-yourself style of portfolio
CD’s and Money Market funds – enables you to diversify your portfolio, generate more income, and preserve your capital
College Savings Plans – numerous investment options for your future college grad that features spending flexibility and tax benefits
Mutual Funds – a great option for the balancing and diversification your portfolio using professionally managed bonds, money market funds, and stocks
Retirement Investments – numerous options for individuals and businesses
Due to the focus of this article, we are going to discuss mutual funds. If you are interested in any of the other investment instruments listed above, you can always visit an American Century Investments office.
Mutual funds offered
American Century Investments offers 83 different funds in the following categories:
- 18 Asset Allocation funds – Morningstar Asset class funds including Livestrong, One Choice Portfolio, and Strategic Allocation funds
- 21 Bond funds – short-term, intermediate, and long-term bond funds of all types
- 5 Money Market funds – includes California Tax-Free, Capital Preservation, Premium Money Market, Prime Money Market, and Tax-Free Money Market
- 39 Stock funds – large and small blend funds as well as small cap, mid-cap, and large cap funds are the primary funds in this group, although there are foreign investments and precious metals funds available