WellsTrade Review 2015: Commissions, Fees, and Minimum Deposit

Fees

Wells Fargo Online Brokerage Account Setup

We decided to open a WellsTrade account linked to a PMA package (checking account) to get lower pricing. First, we went to a local Wells Fargo branch and were able to open the PMA package very fast. They give you your account and PIN numbers, which you can use to set up access to your checking account online. After that’s done, we set up ACH transfer with our external bank account, which requires a deposit verification process. In two business days we saw the deposits in our external bank account and were able to finish ACH setup for the PMA package. Unfortunately, it turned out that Wells Fargo limits daily online transfers to and from external account to $2,000 and monthly to just $6,000. But to avoid the PMA package’s $30 monthly fee, you need $25,000 in your PMA checking account. Half of your WellsTrade brokerage balance counts toward that requirement, meaning you alternatively need $50,000 in your WellsTrade account to avoid the monthly fee.

We had no choice but to go to a branch and make deposit to our PMA by check. Because the amount deposited was large, Wells Fargo made only $4,800 of the amount available three business days later, and for the rest we had to wait 10 days!

Once we finally had money in our PMA checking, we signed in into our account online, clicked the Brokerage tab, and filled out a few required forms. We were told our WellsTrade account would be approved two business days later. It actually took two weeks.

Wells Fargo is required to withhold 28% of all sales proceeds, dividends, and interest payments until the signed Account Services Agreement Signature Page is received. We filled this form out and emailed it to them; none of the other brokers require this procedure.

WellsTrade.com Website/Trading Platform/Tools Review

Wells Fargo Brokerage (WellsTrade) offers great selection of independent, third party investment research and education resources: market commentaries, profiles, S&P Stock Reports and Morningstar® mutual fund ratings. Charts are less comprehensive than in most other brokerages. The gain/loss information on the positions screen is not updated right away. Overall, the WellsTrade trading tools are disappointing.

WellsTrade Pros

• Good banking services
• Good independent investment research amenities

WellsTrade Cons

• High commissions if not in PMA program
• For stocks below $1 per share commission is greater of $34.95 and 3.5% of principal
• Poor trading tools
• Horrible executions; randomly altered limit orders
• High margin rates
• $25 Minimum Balance Fee, if account is less than $5,000; $30 monthly service fee if PMA Package has less than $50,000 in all accounts
• Shortened after-hours trading: 4:05 pm — 5:00 pm EST, instead of 4:00 pm — 8:00 pm EST

Wells Fargo Investments Review Summary

WellsTrade is a brokerage operation of the well-known Wells Fargo Bank. It is expensive to invest in or trade stocks and ETFs with WellsTrade: $8.95 per stock or ETF trade is higher than the average rate among online brokerage firms. Mutual funds are also expensive at $35 per transaction. The company offers shortened extended hours trading, and charges huge commissions on penny stock trades.

WellsTrade is offering its account holders a full range of banking services through its parent company Wells Fargo. The firm provides very good selection of independent, third party investment research.

Unlike most other brokerage firms, it charges $25 annual minimum account balance fee if account value is less than $5,000. The company has very high margin rates and suffers from slow-to-respond customer service. Its trading tools are archaic and slow compared to the competition. There are instances of limit orders changing price or being executed even if there is not enough money in the account.

For investors with large portfolios, Wells Fargo has a private advisory group. This enables investors to gain the benefits and attention given to clients at large brokerage houses, while retaining the benefits found in the banking environment. These clients are offered additional benefits and special pricing on services beyond their investments.

There are better brokerage companies for beginner investors than WellsTrade, that offer vibrant online communities, where users can ask questions, learn from more experienced traders and even get investment ideas. Some of them offer virtual trading, that allows customers to practice trading without risking real money. Check out our Best Brokers for Beginner Investor recommendations.

We can’t recommend opening a WellsTrade brokerage account unless you are already a Wells Fargo bank customer who invests infrequently. There are a lot of other low-cost, highly-rated Online Brokerage Firms to choose from, that offer more value to their customers.

WellsTrade Promotion Code