Thursday, January 23rd
2025 Online Stock Trading Platform Reviews
SpeedTrader
- Designed specifically for day traders
- Free broker-assisted trades
- Offers both U.S. and international accounts
- Trading is available from 4 a.m. to 8 p.m.
- Enables direct online trades of stocks and options with no middleman for speedy transactions
- Free demo account plus a 14-day free trial of the pro software
SpeedTrader offers several trading platforms specifically designed for advanced, active day traders. Since 1999, SpeedTrader has focused its efforts in developing trading platforms on a tiered level of service. The trading software is from DAS Inc., a direct-access broker. This is SpeedTrader's niche - the software allows users to trade directly with the market, leading to super fast ordering. SpeedTrader offers over 25 routing options to give active traders an edge. The company also focuses heavily on delivering good customer service.
Just the facts
- Costs
- Starting at $2.49/trade on Stocks and ETFs (minimum 3,000 per month)
- Starting at $0.25/contract on options (minimum at least $10,000 per month)
- Free broker-assisted trades
- Minimum Deposit
- $2,500 for United States accounts
- $30,000 minimum for non-US accounts
14-day free trial of SpeedTrader Pro
SpeedTrader offers a 14-day free trial of its premier platform, SpeedTrader Pro. Even if you aren't interested in going pro and using the Active version of the platform, you will get a feel for how SpeedTrader operates. You can try out all of the platform's features, like simulating trades, analyzing Level 2 screens, and so much more. No credit card information is required, so it makes it a fairly risk-free experience.
Make at least 15 trades each quarter
You'll definitely not want to fund your SpeedTrader account and then let it sit - if you don't execute 15 trades in a quarter, you will be charged a $30 inactivity fee.
Tiered software with prices based on commissions and minimums
SpeedTrader offers SpeedTrader PRO, SpeedTrader ActiveWeb, SpeedTrader Mobile, and Sterling Trader Pro. Here is a rundown:
- SpeedTrader PRO is free with $499+ monthly commissions, $49 per month with $199+ monthly commissions, and $99 per month with less than $199 monthly commissions. It requires $10,000 initial funding and gives you extensive short lists, hot key trading, extensive short lists and multiple direct access ECNs, as well as advanced charts and multi-account access. This is a software-based program (downloadable) with a free mobile app. Trade is from 4 am to 8 pm ET.
- Speed Trader Active Web is free with $199+ monthly commissions, or $35 per month with less than $199 monthly commissions. It gives you everything that Pro offers except for hot key trading, advanced charts, and the ability to download it (it's a web-based program). It requires a $2,500 initial minimum.
- SpeedTrader Mobile is free with $199+ monthly commissions and $35 per month with less than $199 monthly commissions. It can only work on mobile devices and will not give you hot key trading, software to download, or advanced charts. It requires $2,500 initial minimum funding.
Beginners are not invited
SpeedTrader caters specifically to day traders and has little to no interest in beginners. SpeedTrader would most likely be a nightmare for beginning investors or those who only trade as an on-and-off hobby. Since SpeedTrade specifically wants active day traders, their educational resources are thin and not geared toward people who are new to the world of trading. There are better stock trading platforms for beginners out there.
Fines from FINRA
Recently, SpeedTrader agreed to pay over $100,000 in fines to FINRA. FINRA records show a number of fines related to trading and orders, and it dates back several years. The violations and problems are very numerous and were consistent for over 5 years. SpeedTrader has agreed to the fine and has neither denied nor affirmed the alleged violations. They also agreed to hire someone to supervise certain aspects of controls and procedures in the company.
Good customer service
SpeedTrader customer service is simple to reach and relatively friendly. Options for contact include chat, phone, and email. Calls and chats are responded to promptly and comprehensively by live representatives between 8 am and 5 pm ET, Monday through Thursday, and 8 am to 4:30 pm on Fridays.
For advanced traders only, but overpriced, tepid software
We were surprised to find that this relatively expensive software that SpeedTrader offers isn't exactly as sophisticated as we expected it to be for the advanced and active day trader. We wish SpeedTrader would add more research and a little more sophistication to its software, since they are so focused on advanced skill level traders. SpeedTrader is definitely not for inexperienced investors, long-term buy-and-hold clients, or anyone who places value on research analysis for trading. We weren't impressed, and that's reflected in SpeedTrader's rating here.
More Online Stock Trading Platform Reviews
The 12 Best Online Stock Trading Platforms
Which Online Stock Trading Platform is the Best?
This can be an overwhelming question for beginning investors - but that's a great place to start. First, ask yourself what level of skills or knowledge you have in investing and what your purposes for investing are. Are you brand new to the financial world of stocks, ETFs, fractional shares, and options? Are you trying to manage a large amount of wealth? Are you looking for a safe place to grow your savings over the next few decades?
Or, are you someone who has had a lot of experience in investing and wants to get back into the game or take your game to the next level? Are you wanting to take high risks, or are you more conservative in your approach? There are plenty of options out there and there are some who focus on everything and some who specialize in one or two niche markets.
Online Stock Trading Platform FAQ
Continued from above...
For beginning traders, there are platforms that have devoted a big part of their online presence into education. Some have partnered with banks so you can do all of your investing along with your banking.
For active traders, the best platforms will have advanced charting capabilities, responsive customer service, robust toolkits, and they will also offer high-quality research resources. We highly recommend those platforms that allow for backtesting - a way to put in a particular strategy simulation and see how it might play out before committing to the trade in real life. Be sure to ask questions and double-check that whatever stock trading platform you use, they will have the tools that fit your particular needs.
For example, if you are going to be trading mostly on your mobile phone, you will want to make sure the stock trading company you choose has a strong mobile platform. Some companies do a bare-bones mobile app, and that would not be a suitable fit. Be sure to check if software platforms have a history of outages or glitches, too.
Are you the kind of investor who doesn't want to actually pull the trigger on choosing which stocks to buy on your own? You might want to look into robo-advisors or a dedicated financial advisor or team of advisors. These accounts usually come with fees as a percentage of the total amount invested, but it can be well worth the cost if you don't want to be involved in the day-to-day management and strategy on your account.
Most advisor accounts (robo or personal) involve you completing a questionnaire and/or a phone call that considers your time frame, financial goals, and risk tolerance. From there, the company will create a portfolio matching the information you gave. This portfolio will be rebalanced automatically, and you don't have to do a thing. On those types of accounts, you can find options with no fees, and the ones that do charge fees are usually much less expensive than working with a human advisor one-on-one.
Keep in mind that most of today's online stock trading platforms very proudly advertise that they charge "$0 fees." That usually just refers to a $0 commission fee. There will definitely be at least one or two fees for most accounts. Whether it's for withdrawal or broker-assisted transactions, there are going to be some extra costs associated with your account.
So, which online stock trading platform is best for you? Here are some of the criteria to keep in mind:
- Intended investment strategy. Are you an active day trader? A buy-and-hold investor? A conservative investor taking the slow and steady way to build a retirement? Are you willing to take risks? Are you a natural researcher or do you want someone else to do that for you?
- Ease of use. Is the website difficult to figure out? Is it easy to open an account, or do you have to go through a lot of extra hoops? Do you prefer to talk to someone on the phone, or is live chat your go-to way to communicate? Are there tutorials and online help for learning how to use the platform?
- Tools. Do you want lots of tools, or do you just want someone else to worry about it? Do you want to have an app that is integrated with your bank? Is there a mobile app? Is it web-based or downloadable? Can you connect with research resources that match your level of expertise?
- Customer service. What do other clients say about their experiences with the company? How are issues handled by customer service? Are the financial advisors helpful?
- Reputation. Is this a service with a long history in the financial industry or a relative newcomer? Is the company insured or backed by government or private agencies? Do they have a history of litigation or being fined by FINRA or other agencies? Are they transparent?
To help you make the most of your investments, Top Consumer Reviews has evaluated and ranked today's most popular online stock trading platforms. We hope this information helps you reach your financial goals!
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