Higher new fees at Tradeking

After my bout of issues (Tradeking is holding my money hostage and Tradeking changes its ACH holding time to 60 business days) with Tradeking, I haven’t actively used my Tradeking account. Recently, I happen to notice that Tradeking has changed part of its fee structure.

First of all, Tradeking has significantly increased its margin interest rates. Tradeking used to have quite competitive margin interest rates but no more. The following is an email from Tradeking sent earlier this month and their current margin interest rates:

Debit Balance                   Rate
$0 – $49,999                   6.5%     (Broker Call + 4.5%)
$50,000 – $249,999        5.5%     (Broker Call + 3.5%)
$250,000 +                      4.5%     (Broker Call + 2.5%)

If I remember correctly, their old margin interest rate schedule was

Debit Balance                   Rate
Any balance                    (Broker Call + 1.0%)

For comparison, the current margin interest rates at Just2Trade.com are just

Debit Balance                   Rate
under $10,000                 2.75%     (Broker Call + 0.75%)
$10,000 – $249,999        2.50%     (Broker Call + 0.50%)
$250,000 – $499,999      2.25%     (Broker Call + 0.25%)
$500,000 +                      1.50%     (Broker Call – 0.50%)

The second change is that Tradeking has quietly added annual maintenance fees to its check writing products (there was no notification email from Tradeking about this). The base “Gold” checking product now has an annual fee of $50 while “Platinum” check writing has an annual fee of $75. Check writing used to be offered free.

I do not track the other fees. Those might be changed as well.

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One Response to “Higher new fees at Tradeking”

  1. Wilton Says:

    I totally agree. I’m more interested in the Margin rates

    —————————————————–

    Long Stock: Equities between $3.00 and $6.00

    Initial and Maintenance:
    50% of Purchase Price
    Long Stock: Equities above $6.00

    Initial:
    50% of the purchase

    Maintenance:
    30% of current market value (65% for concentrated accounts, when one security constitutes 50% or more of the account market value).
    Short Stock: Equities below $5.00

    Initial and Maintenance:
    The greater of: $2.50 per share

    OR

    100% of the market value + sale proceeds

    TradeKing does not allow new short positions on stocks below $3
    Short Stock: Equities above $5.00

    Initial:
    The greater of: $5.00 per share or 50% of the market value + sale proceeds

    Maintenance:
    The greater of: $5.00 per share + 100% of current market value

    OR

    40% of the position market value (65% for concentrated accounts) + 100% of current market value

    —————————————————–

    What does all that mean?

    I must be reading it wrong because I feel those cost if I read it as I understand it sounds CRAZY!

    -Wilton

    e-mail me back and let me know what you think.