Tradier Review: A Highly Customizable Brokerage Experience for Active Investors

Tradier is one of the more unusual brokerages we've reviewed at The Ascent. It isn't the only brokerage designed for active and experienced investors, but Tradier is distinct in having dozens of highly customizable trading platforms for active and experienced investors to choose from. In this review, we'll break down the pros and cons of Tradier to help you decide if it's a smart choice for you.

This stock broker is a good fit for: Advanced traders familiar with how the stock market works and who want a customizable trading experience.

Top perks

Low options commissions with subscription option

Tradier gives options traders a choice between $0.35 per-contract fees or a $10 monthly subscription with unlimited free trading. For active options traders, this represents big savings compared to rivals.

Low margin interest rates

Tradier has a simple, flat-rate margin structure with a 9.5% interest rate. This is significantly lower than the margin interest charged by many competitors. That said, some competitors may offer better rates to traders with big balances.

Highly customizable trading experience

Over 100 trading platforms are available on Tradier, and there's even the ability for tech-savvy experienced traders to design their own custom platforms. Most other brokerages offer one platform, or two at the most.

Lots of investment choices

In addition to standard investment choices like stocks, ETFs, mutual funds, and options, there are other types of investments available via third-party platforms through Tradier accounts. Futures and forex trading are two examples, and some of the platforms allow access to international stock markets. And, depending on the platform you choose, you might be able to invest in fractional shares of stock.

As of early 2024, Tradier has announced it will be bringing futures trading onto the platform.

What could be improved

Stock and ETF commissions

Tradier has upped fees on the platform from $0 to $0.35 per equities trade. Users who want to trade without paying Tradier commissions must subscribe to the $10 per month pro plan. Casual traders, especially active ones, may want to check out commission-free brokers to save money.

Expensive mutual fund investing

Mutual funds are available through Tradier brokerage accounts, but with a big asterisk. The standard mutual fund commission is $30, and even funds on NTF lists cost $10 to trade. If mutual funds are going to be a primary focus for you, there's probably a better brokerage choice.

IRA account fees

You can open an individual retirement account, or IRA, through Tradier, but the platform isn't ideal for it. There's a $30 annual fee to keep an IRA at Tradier, and a $60 termination fee if you close it. If you want paper statements or paper trade confirmations, you face extra fees for those as well.

Account inactivity fees

Tradier isn't the best place to simply buy a few shares of stock and leave them alone. The broker has a $50 inactivity fee for accounts with less than $2,000 that have less than two executed trades in a year.

Tradier charges $0.35 commission per online stock trade, significantly more than alternative brokers. Stock ETFs are also subject to this fee. To trade commission-free, users must sign up for the $10 per month pro plan. Advanced traders might find the monthly fee worth the expense, but casual traders might prefer to use a commission-free stock broker to save money.

Tradier's standard option commission rate is $0.35 per contract, and this applies to simple and complex option orders.

Instead of paying a per-contract commission for options trading, customers can opt into the $10 monthly pro plan for unlimited commission-free options trades. If you regularly trade options and your volume is typically more than 28 contracts per month, the subscription plan can save you money.

Mutual funds are a potential downside for many investors. While Tradier does support mutual fund investing, it only does so through its brokers (not through its numerous third-party platforms). Standard mutual fund transactions have a $30 commission, and even mutual funds on the NTF list come with a $10 charge, as they are considered "broker-assisted."

READ MORE: Best Brokers for Mutual Funds

Commissions are only one part of the cost of using a broker. In addition to trading commissions, brokers charge fees for various services such as margin investing, wire transfers, and more. For the most part, Tradier's fees are in line with those of many brokers we've reviewed, with a few notable exceptions:

• Tradier's margin interest is a flat percentage of 9.5%, definitely on the lower end of the spectrum compared to its peers.
• Tradier charges a $30 annual fee for IRA accounts unless you sign up for the $10 monthly pro plan.
• If you want paper statements or paper trade confirmations, the fees are $6 and $3 respectively, per document.
• Tradier charges a $50 inactivity fee for U.S. accounts that make fewer than two trades per year, unless you sign up for the $10 monthly pro plan.

Here's one of the more unusual aspects of Tradier. Instead of offering just one or two trading platforms like most other brokers do, Tradier offers a variety of third-party platforms investors can use. As of this writing, more than 100 platforms are available through Tradier brokerage accounts. And if you don't like any of them, Tradier supports the development of unique platforms for use with its brokerage accounts.

Many of these platforms have a specific focus, such as options trading. And while Tradier offers relatively inexpensive option contract fees, it's worth noting that some of the trading platforms available have their own costs, and many aren't exactly cheap. For example, the Track n' Trade visual investing platform starts at $79 per month.

Some of Tradier's third-party platforms offer a wider range of investment options. For example, you can access international stock markets through some of the platforms, and the same can be said for futures and forex trading. Some of the platforms also allow fractional share investing, for buying shares of stock in non-whole numbers.

While most brokers use a margin rate schedule with percentages that decrease for higher-balance accounts, Tradier uses a flat-rate structure. Tradier's margin interest rate is 9.5% for all investors, regardless of margin balance.

Not only is this a much simpler structure than that of most peers, it's also on the lower end of the spectrum. Many of Tradier's rivals charge significantly higher margin rates.

Tradier doesn't offer third-party research to investors directly. However, some of the dozens of available trading platforms offer research products. Again, keep in mind that many of Tradier's platforms have their own fees.

Tradier is best suited for active and highly experienced investors who want a customizable trading experience (and are willing to pay up for it). While it does offer things like IRAs and mutual funds that appeal to long-term investors, it isn't the best choice for either. Tradier excels in its specialized platforms, low margin rates, and low options trading commissions.

At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology