Consumer Boomer

TradeKing IRA Review: The Best Online Discount Broker

Posted: 13 Apr 2010 10:58 AM PDT

Do you consider yourself to be a “do-it-your-selfer” when it comes to investing? If you’re good, it can save tons of cash in fees. If you’re not….well, you know the answer. If you’re looking for a low cost online discount broker, why not open account with the best? has been voted the #1 Discount Broker by Smart Money on more than one occasion, so I assume they know that they are doing. So whether you’re looking to open a trading account or a no-fee IRA, let’s take a look why you should consider TradeKing for your investment needs.

TradeKing IRA Review

Why Open an IRA at TradeKing?

Because TradeKing charges $4.95 per trade for stock and ETF trades, and $4.95 per trade for option trades plus 65 cents per contract. That’s why! They charge the same rate for market, limit, and broker-assisted trades, with no minimums or hidden fees. Are you looking for a no-fee IRA? Then is the online brokerage for you. In addition, TradeKing does not have any ongoing account maintenance fees for regular trading accounts.

How Does TradeKing Compare to Other Online Brokers?

When it comes to trading cost per trade, no other online broker compares (except for maybe Zecco, if you meet certain requirements). At $4.95 per trade, the closest competitor is Scottrade at $7.00 a pop. That makes them 40% higher per trade! The next two closest are TD Ameritrade and E*TRADE, but they are both double in what TradeKing charges. Sounds like a good deal to me. Here’s a chart that compares the pricing structure of the leading online brokerage firms.

Comparison of Online Brokers

Read here for a review on the other online broker Zecco and see how it compares to TradeKing.

Superior Customer Service

Setting up a TradeKing account is a breeze. In about 10 minutes and sharing some personal information, you’re ready to fund your new account. In 2008, they were nominated by Smart Money Magazine for best customer service in their industry. One neat feature that you’ll never get with a brick and mortar brokerage firm is that they offer Live Chat to field your questions and concerns. Based on other reviews, you should be in direct contact with a customer service representative in less than 5 minutes. Below is a video from Investortrip.com that shares some of the awards that TradeKing has won.

Free Dividend Reinvestment Through TradeKing

Purchasing stock through a DRIP program is traditionally the cheapest method to buy stock. Now, TradeKing offers a competitive option. They offer free automatic dividend reinvestment, with the ability to purchase fractional shares. This can be set for all your stock holdings, or just specific ones. This is nice if you have ETFs and you want to reinvest dividends like you used to with mutual funds.

TradeKing Reimburses Transfer Fees

If you’re still trying to come up with an excuse to not open an account with TradeKing, the following should eliminate them all.

Switch to and get up to $150 in Transfer Fees Reimbursed. If you have any other brokerage accounts that charge you inactivity fees for high commissions, why not transfer to TradeKing to save money per year and get reimbursed for it? Sounds like a no-brainer in my book.

Opening an Account

Go to and open an account today and enjoy your no-fee IRA and $4.95 trades.

Questions to Ask Before You Buy Insurance

Posted: 13 Apr 2010 04:51 AM PDT

When it comes to buying insurance, consumers are faced with many questions: How much life insurance to buy? What is the best insurance to buy? What life insurance is best for my situation? It’s easy to get overwhelmed. Below is a list of questions that a consumer should ask when purchasing life insurance from the potential provider. If you don’t get the answer you’re seeking, it’s time to head to a different insurance provider.

photo credit: hectorir

1. How do I know that I'm getting the right amount of coverage for my situation – not overpaying for things or leaving me exposed?

You’ll need to have some numbers jotted down before you can start: projected income needed, value of home and valuables, rough budget numbers.

2. What are the advantages of having different types of insurance policies (home, auto, life, etc.) with the same provider?

Some insurance companies will give you a break if you have all your insurance with them. The concept might sound good, but double check to make sure you’re still getting the best deal.

3. What disadvantages are there of having multiple insurance policies (home, auto, life, etc.) with the same provider?

As mentioned above, you might not get the best price. The other big worry is what happen if the insurance company fall upon hard times. Remember AIG? You’ll want to make sure that they have a solid credit rating. You can check with Standard and Poors or A.M. Best to find out how solid the insurance provider is.

4. How can I understand what comprises a good policy for my situation under each of the insurance categories?

You’ll need a PhD in insurance to fully understand the policy. Since that’s not a reality, you need to find an insurance agent that can S-P-E-L-L it out for you in layman’s terms.

5. How does your company make sure that I can get smart, trusted advice if my personal situation changes?

Your insurance agent should have a good back office support to help keep them abreast of all the rule and regulation changes in the insurance industry.

6. What can I do to make sure that I get all of the discounts I'm entitled to?

If you’ve decided on an insurance company, it wouldn’t hurt to call the back office to make sure you’re getting the best deal for what you are buying.

7. Are there benefits to renewing with the same company when my policy ends?

You may be entitled to some discount for sticking with one company. Be sure to find out before you decide to switch to another company just to save a few bucks that you would have received anyway without the hassle.

photo credit: matthewbradley

8. How can I ensure that I'm making an apples-to-apples comparison if I'm price shopping among several companies?

If you’re shopping a 30 term life insurance policy with one company, make sure you’re not comparing it with a 30 year term life policy with a return of premium rider on it or a whole life policy.

9. How can I make sure that my insurance decisions fit into my overall personal financial picture?

Set up a meeting with a Certified Financial Planner™ to review your needs and make sure that you and the insurance agent isn’t missing something.

10. What is the impact on me if I file a claim? Explain to me why my policy goes up when I make a claim? How is this protecting my financial needs if my insurance company raises my premium?

Fender benders seem common enough, but how much will it effect your car insurance premium

11. What are the most overlooked discounts that are relatively easy to get?

Are you a veteran or an alumni from a university? You may be entitled to a discount on your insurance. Don’t know unless you ask.

12. How frequently should I review insurance policies to ensure they are up-to-date and meet my needs?

You should review your insurance plan with your insurance agent at least once annually. That way you make sure you have all the coverage you need for the best price.

13. How can I tell if an insurance agent is being "straight" with me, or just trying to sell something else?

Have your doubts, compare what that agent is saying with another agent.

14. Do my kids get a discount when they buy a policy with the same company that I have been with for years and years?

Your kids might benefit from the family discount.

15. Will a poor credit rating influence the coverage I qualify for and my premiums? How do I know if an insurance agency is investigating my credit report? Is that legal?

You can find more free life insurance rate quotes here: New York Life, Gerber Life Insurance, insureMe Insurance, US Insurance.