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ChoiceTrade Review

Rated 4-Stars by Barron's Magazine, but There are Better Choices

ChoiceTrade has been an online brokerage firm since 2000. Its management team includes individuals with extensive experience in the securities industry. As an advanced-technology securities brokerage firm, they cater to active, self-directed traders. They are committed to making available the most state-of-the-art tools - tools that give their customers their best opportunities for realizing success in their trading strategies. ChoiceTrade offer several different trading platforms, each of which is geared toward a specific trading style.

Their trading applications have one goal in mind - to meet the needs of traders and to offer them a choice. Whether that's offering a basic web trading application for its simplicity, ease of use and low cost, or providing a system that enhances their trading experience complete with the necessary tools for making informed decisions. ChoiceTrade offers efficiency, versatility and leading edge capabilities. ChoiceTrade's deeply discounted commissions and customer-centric focus makes them a great choice from many traders.

Commission Structure and Fees

ChoiceTrade charges $5 per stock trade, regardless of how many share you trade. This is very valuable is you trade low priced stocks or penny stocks. Most online brokerages add a per share surcharge on trades over 5,000 shares. These surcharges are typically $.01 per share, which is a killer if you're trading tens of thousands of shares. For options trading, they charge a very competitive $5 plus $.55 per contract.

ChoiceTrade also offers platform-based direct access trading for more sophisticated, higher volume traders. The commissions for direct access trading vary depending upon account size and volume levels, but the rates are $0.005 per share and lower. They do have a $1 per trade minimum for the direct access trading.

Trading Tools

ChoiceTrade offers 3 different trading platforms, all of which have monthly technology fees attached to them. They offer Web-Based ChoiceStreamer Basic and Advanced, which as their names indicate, are both web-based trading platforms. The advanced version has more bells and whistles, most notably, mobile trading capabilities.

They also offer a software-based trading platform called ChoiceTrader Select with eSignal. This is a powerful trading platform designed for sophisticated traders. While the platform is powerful, it also comes with $126 per month platform fee.

Each of the three platforms offer ala carte add-ons, such as ARCA Book, Dow Jones News Wire, Pink Sheet Levels 1 and 2, NASDAQ Total View, etc. Each of these extras also come with extra monthly fees.

Overall Assessment

We believe ChoiceTrade is a decent brokerage for more sophisticated traders, but we wouldn't recommend them to somebody who's just getting started. For traders who like to trade penny stocks, they're a good choice. Their low stock trading commission coupled with their lack of a penny stock (or high share volume) surcharge, make them strong in this area. They also offer level 2 pink sheet quotes, which most brokers don't.

Overall, we feel that ChoiceTrade is a good company, but there are much better choices out there for online brokers. To see a comparison of ChoiceTrade to some other major online brokerages, visit our online trading comparison page.