T. Rowe Price Review 2017

3-star brokerage firm rating

T. Rowe Price brokerage firm review. Fees & commissions, advantages & disadvantages, minimum requirements & promotion offers for opening a new online account with the online discount stock broker.

  • Stocks & ETFs: $19.95, $9.95 with conditions
  • Options: $19.95 + $1 per contract, $9.95 + $1.00 per contract with some conditions
  • Mutual Funds: $35

Minimum to open: $2,500 for a cash account, $1,000 for an IRA.

Open an account: Open an account with T.Rowe Price.

T. Rowe Price Review

T. Rowe Price Brokerage is a reputable brokerage firm, a division of T. Rowe Price Investment Services, Inc. The company is a member of FINRA and SIPC. As of March 31, 2015, the combined assets under management of the T. Rowe Price group of companies is $772.7 billion.

T. Rowe Price Type Of Brokerage Accounts And Minimum Requirements

T. Rowe Price offers different types of brokerage accounts - Brokerage, Brokerage Advantage and Brokerage IRA. Accounts require different minimum initial deposit and offer various services.

The minimum initial investment for a self-directed standard brokerage account is $2,500. However, some of the firm's strongest rivals have no minimum deposit, which makes it affordable for anyone to get started investing. For instance, TD Ameritrade and USAA Investments have no minimum to open brokerage account.

T. Rowe Price account can be open entirely online in about ten minutes with no confusion or hassle. All in all, pretty standard service.

T. Rowe Price's premium brokerage account, the Brokerage Advantage, includes all services of the standard account and provides some additional benefits such as no-minimum checkwriting (which is $500 for the brokerage account), one-step exchange between T. Rowe Price and other fund families, a debit card and others. This type of brokerage account is not available for IRAs. The minimum initial investment is $10,000.

The Brokerage IRA, the third type of accounts, is available as a Traditional IRA, ROTH IRA and Rollover IRA with the minimum deposit of $1,000. However, high investing cost and some IRA fees, which other big brokerage houses do not charge, do not allow T. Rowe Price join a list of the best brokerages for IRAs in 2017.

T. Rowe Price Fees Review

In a T. Rowe Price individual brokerage account, investors can purchase stocks and ETFs, bonds, mutual funds – including non-T. Rowe Price funds, CDs, precious metals, options and margin investing.

Commissions at T. Rowe Price are extremely expensive! You are charged $19.95 per trade unless you make over 30 trades per year or have at least $100K in assets - then commissions drop to $9.95 per trade. Major brokerages offer cheaper lower commissions - $5-$10 per trade - no matter the amount of trades you make or the value of your account.

T. Rowe Price has an annual account maintenance fee, which is $30 per year. I can be waived with some conditions. Most discount brokers don't charge account fees. Also, there is a $50 account termination fee.

Mutual funds are $35 per transaction, which is a moderate investing fee. For example, Schwab charges $76 for buying mutual funds ($0 on funds on its list), TD Ameritrade - $49.99, and Ally Invest - only $9.95 to buy and sell.

When it comes to a short-term redemption fee, T. Rowe Price is not an exclusion. The brokerage firms charges a fee which is equal to the greater of $50 or 1%, but not exceeding $250. It's a very high! A short-term redemption fee is charged by any brokerage to discourage short-term redemption of no-load, no-transaction-fee (NTF) funds that are held for less than a fixed period of time. For instance, Scottrade's fee is only $17 on no-load funds that held are less than 90 days. T. Rowe Price's securities holding period is twice greater, which is six months.

Moreover, a short-term trading fee of $5 applies to shares purchased systematically and held less than six months. These fees are in addition to any short-term trading fee charged by the fund. The short-term trading fee is waived for T. Rowe Price funds; however, individual fund redemption fees still apply.

ProductPrice
Stock and ETFs
Online Stock and ETFs $9.95 per trade for accounts with more than 30 executed trades in the prior 12 months or customers who qualify for the T. Rowe Price Select Client Services program ($100,000+ in assets). $19.95 per trade for all other accounts
Telephone Orders$35 per trade for up to 1,000 shares plus $.02 for each additional share
Representative-Assisted Principal Value(PV)
Commission Charge (PV x % + $)
More than $1 per share
Minimum of $40 per transaction or $.08/share on the first 1,000 shares, $.04/share thereafter; whichever is greater.
Maximum of $.50/share on orders for 100 shares or more and $50 per transaction on orders for 99 shares or fewer.
$0-$2,500
$2,501 - $6,000
$6,001 - $22,000
$22,001 - $50,000
$50,001 - $500,000
$500,001 and over
.015 + $30
.005 + $57
.003 + $73
.002 + $100
.001 + $175
.0008 + $275
Less than $1 per share (Penny Stocks)
$0- $10,000
$10,001 and over
$.04 + $35
$.03 + $35
Mutual Funds and UITs
No Transaction-fee (NTF) fundsNo charge (with some conditions)
Transaction-fee funds$35
Load Funds and UITsStated load only
Options
Online $9.95 plus $1 per contract for accounts with more than 30 executed trades in the prior 12 months or customers who qualify for the T. Rowe Price Select Client Services program ($100,000+ in assets) $19.95 plus $1 per contract for all other accounts
Tele-Trader10% off regular representative assisted rates (subject to a minimum commission of $35)
Representative-Assisted$34.95 plus $1 per contract
Bonds and CDs
Commercial Paper$50
Treasury Auctions$50
Treasury Bills$50
Agency (FNMA, FHLMC), TIPS, Treasury and Coupon Notes and Bonds, Treasury 0% Coupon Bonds$1 per $1,000 Bond
GNMAs and CMOs (Minimum of $25,000)$1 per $1,000 Bond
Corporate Bonds$5 per $1,000 Bond
Municipals (Minimum of $5,000)$5 per $1,000 Bond
CDs
PRODUCTSALES CHARGE PER $1,000 BOND
Certificate of Deposit (Minimum varies by issue)CDs purchased at par ($1,000)
Precious Metals
Gold, Silver, Palladium and Platinum
Principal Value (PV)
$0—$9,999
$10,000—$49,999
$50,000—$99,999
$100,000 and over
Commission Charge (PV x %)
.025
.020
.015
.0075

T. Rowe Price Online Trading Experience Review

The company's website is just OK. It’s not as good as at today's top brokerage firms. It’s reasonably user-friendly. Investors can make trades and manage accounts entirely online. However, if you take a quick look at the customer reviews on T. Rowe Price, you may notice numerous complaints about lack of website friendliness and ease-of-use.

T. Rowe Price brokerage review

iPhone and iPad Apps are offered at no charge. Free fully optimized App for iPad allows customers check account balances, execute trades, review recent and pending activity, track performance with balance history charts. Also, a mobile optimized websites is available to access an account on Android, and other Internet-enabled devices.

T. Rowe Price Customer Service Review

Customer service at T. Rowe Price is good. We have called several times with questions, and the reps appear to be professional and knowledgeable. For brokerage customers representatives are available via the phone on weekdays from 8AM - 8PM ET. Technical support via the phone is available 7 days a week from 7AM - 10PM on weekdays and 9AM - 5PM during weekends.

Customer can also can ask questions via email and receive one-on-one guidance and investment advice at one of six local T. Rowe Price Investor Centers.

T. Rowe Price Research and Trading Tools Review

Research and analysis are very basic and limited. It's far behind Investors have access to the latest market news, up and downgrades, most actives, top sectors. Quotes are delayed 20 minutes.

T. Rowe Price brokerage review

Executing trades online is very simple. There is a very short video on how to execute trades online on the official T. Rowe Price website.

T. Rowe Price brokerage review T. Rowe Price review

The broker offers a modest range of tools to help investors understand investments. Interactive tools on investment, retirement, tax, college and estate planning are available to meet individual goals of any investor. Some of tools are pretty basic and useless, but we will outline some of them that we like:

  • Mutual Fund Compare Tool – this comprehensive tool is a nice way to shop for mutual funds. It allows investors to compare mutual fund fees, see the performance history of funds, risk, and holdings. Up to five mutual funds can be compared at a time. Investors can browse funds by fund family or selecting fund by its name or ticker symbol.

  • Mutual Fund Gateway Tool - an interactive tool that gives access to detailed information on hundreds of no-load mutual funds, allows to search for detailed fund information by fund family or Morningstar category.

  • Retirement Income Calculator – easy-to-use tool to figure how much investors may be able to spend each month and how long their savings will last.

  • FuturePath® - a retirement planning resource that helps investors understand their financial goals and develop a plan to achieve them. This sophisticated tool calculates a wide range of potential investment outcomes by simulating how they may perform under 1,000 market scenarios based on historical returns and for reinvested dividends and capital gains. Despite T. Rowe Price team's best efforts, there is no certainty that the analysis will accurately predict asset class return ranges going forward, so investors should not place too much reliance on the apparent precision of the results.

T. Rowe Price Premium Services Review

Besides different brokerage account types, T. Rowe Price offers three level of premium services for high-net-worth customers ($100,000 and above in assets). All premium level customers receive discount pricing for online trades, waived account service fee or the annual maintenance fee, exclusive online benefits, complimentary semiannual portfolio summary report, direct access to premium service teams, advisory planing services (a $250 one-time fee value), complimentary memberships to premium investment research and analysis online resources, such as Morningstar.com (a $199/year value) and more.

investment guidance and free TurboTax products during tax season are available to customers with over $250,000 in assets invested with T.Rowe Price. And those who invest over $1,000,000 in total assets receive waived advisory planning service fees, complimentary subscription to The Wall Street Journal Online (a $348/year value), and more.

T. Rowe Price Review Summary

Brokerage's online trading commissions are very high ($19.95 per trade for stocks), even a discount commission for qualified customers ($9.95) is well above the average industry price ($7). For instance, TD Ameritrade charges only $6.96 and and Ally Invest is only $4.95.

T. Rowe Price brokerage charges account fees (annual, maintenance, termination fees) that many other companies do not have today. When it comes to research and trading tools offered by T. Rowe Price, they are also very limited. Today, there are companies offering lower trading commissions, providing top notch trading platforms with no charge and granting free access to several sources of third-part research. For example, TD Ameritrade, Schwab and Etrade offers in-depth research.

T. Rowe Price is truly lacking on a number of local branches and an array services offered compare to other well-established brokerages offering full-service. Only six local offices compared to the largest broker's branch network of over 500 offices offered by Scottrade. Check out the best brokers for in-person service.

T. Rowe Price is a firm investment company with a wide range of offerings and good service, but extremely pricey in terms of commissions and fees.

T. Rowe Price Investments