ChoiceTrade Review

Choicetrade brokerage review. Fees and commissions, pros and cons, minimum requirements and promotion offers for opening a new online account or IRA with the discount stock broker.

Choicetrade Rating:  ChoiceTrade Review

  • Listed stocks plan 1: $5.00
  • Listed stocks plan 2: $0 with $5.00 monthly fee (market and limit day orders only. Day stop, stop limit and all GTC and day+ext orders are $5.00)
  • All other stocks: $7.00 (trading is not allowed on stock trades less than $0.05 per share. Additional $0.0007 per share charge applies to shares over 10,000.)
  • Options plan 1: $5.00 + $0.15 per contract*
  • Options plan 2: $10.00 per trade with no per contract fee* (up to 250 contracts per leg)

* - Limit of 250 contracts per leg, max 4 legs per trade. Customer may choose either one of the two options plans regardless of which stock plan is chosen. The default option plan is $5.00 plus 15 cents. Exercise and Assignment are $5.00.

  • Minimum to open: $0 for a cash account, $0 for an IRA.

ChoiceTrade Review

ChoiceTrade is a discount stock broker that has been in business since 2000. The firm offers competitive pricing and a number of trading platforms geared toward a specific trading style of frequent and experienced traders. Located in New Jersey, ChoiceTrade is registered with SEC and SIPC.

The account can be opened either online or by downloading forms from the website and sending them via mail. The easiest and fastest way to open an account is online. The only caveat is that after submitting an application for approval, you will be required to send a copy of the government ID via email, FAX or mail.

ChoiceTrade Trading Commissions And Fees

Flat rate commissions on stocks and options are low. The trading fee on stocks is $5.00. Only the firm's strongest low-cost competitors charge less: Firstrade is at $0 and Ally Invest is also charging $0.

Cost per contract on options is $0.15 through the online platform. It is important to note that there is a list of index options that are subject to a surcharge of $1.00 per contract in addition to the regular commission.

ChoiceTrade also offers $0 commission per stock or ETF trade plan. It comes with $5.00 monthly fee. Only market and limit day orders can be executed with this plan. All other orders are $5.00 each.

The two commission plans above apply only to trades on the website (browser-based) platform. If you subscribe to the Direct Pro platform, the commission is $0.0025 per share, subject to a $5.00 minimum per trade. All Regulatory, Exchange, OCC and index option surcharges are extra.

There is a 0.005 per share additional fee for all extended-hours trades for both pricing plans.

You may switch between pricing plans no more than once a month.

ChoiceTrade has an account inactivity fee. The brokerage charges $20 quarterly fee (stock plan 1) or $35 quarterly fee (stock plan 2) if less than five trades were executed. The fee goes to $50 per month for entity accounts.

ChoiceTrade Trading Platforms and Tools

Depending on their trading style and experience, investors can choose one of the three trading platforms provided by ChoiceTrade.

Web-based Choicetrader is a free basic platform available to all customers that comes with real-time quotes.

Quotestream is a customizable streaming data platform that provides access to the market data and technical analysis tools. Advanced charting, news, and research are available. The platform costs $14.95 per month for standard version or $24.95 per month for Pro Version.

ChoiceTrade review

DIRECT PRO is the broker's most advanced Level II direct access trading platform. The platform comes with real-time quotes, charts with advanced indicators, trend line studies, drawing tools, real time news, ESN books and other advanced tools and features for intraday trading. However, the platform is quite pricey at $135 per month.

Mobile versions of platforms are available for iPhones and Android devices.

ChoiceTrade Investment Options

ChoiceTrade has a limited selection of investments to choose from since the firm's main focus is on experienced and active stock and options traders.

Mutual funds, bonds and CDs cannot be bought through ChoiceTrade's online interface.

ChoiceTrade offers traditional, Roth and SEP IRAs. There is no minimum funding requirement for retirement accounts.

ChoiceTrade Research and Education Review

With its focus on experienced traders, ChoiceTrade does not have much to offer in terms of education. It has few videos and articles on options strategies and links to external websites.
Research, charts, news, historical data, earnings and analyst information is available but is very limited.

ChoiceTrade review

ChoiceTrade Pros

  • Low pricing on stocks and options for very active traders
  • A variety of trading platforms for different styles of trading

ChoiceTrade Cons

  • Limited investment choices
  • Monthly platform fees
  • Account inactivity fee
  • Additional surcharges on stocks under $1.00
  • An additional fee for after-hours trades
  • Limited investment research
  • Lack of educational resources

ChoiceTrade Review Summary

Low trading commissions and advanced trading platforms are the strongest features of ChoiceTrade. The company is committed to providing competitive pricing and powerful trading tools to active investors with different trading styles. However, there are additional surcharges hidden in fine print that traders need to be aware of.

The broker's most advanced direct access platform has a very steep $135 monthly fee, which is more expensive than what almost all competitors charge. For instance, the best trading platform on the market, Thinkorswim, is free of charge.

In summary, ChoiceTrade could be considered by professional traders. Less active and novice investors can easily find better and cheaper companies to serve their investment needs.


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ChoiceTrade reviewed by Rating: 3