Description

USAA investment services is offering two commission plans for stocks and ETFs: $8.95 per trade for Gold members and $5.95 for Platinum members. To qualify for a Platinum plan, customers must execute 25 or more trades in a rolling 90-day period, or have $50,000 or more in their accounts. Mutual funds commission is $45 per transaction at both plans. USAA's own mutual funds can be traded commission free.

USAA brokerage doesn't have surcharges on extended hours trading or penny stocks, but does charge $0.01 per share more for Gold members and $0.005 per share more for Platinum members for each share in the trade over 1,000. There are no account maintenance or inactivity fees for both IRA and non-IRA accounts. In general, the company has very few fees when compared to multi-page lists of fees at other brokerage houses. As an example, if client decides to move full or part of his/her account to another firm, there is no charge (no ACAT fee).

USAA is not a firm for traders looking for sophisticated trading tools or investors looking for varied investment research from multiple sources. Their trading tools are basic and the company does not offer an advanced trading platform found at many competitors. Surcharge on large orders further limits any potential for active trading.

USAA is known for competitive banking services and insurance products which are available not just to military and their families but also to the general public. The services include completely free checking account, low rates on car insurance, as well as credit cards with cash, gas and groceries awards.

USAA Investments Pros

• Very few fees comparing to other brokerage firms
• Good stock and ETF commissions for clients with $50,000+ balances
• No account maintenance, inactivity or hidden fees
• Good banking services
• No-fee IRA accounts

USAA Investments Cons

• Higher than average commissions for Gold Members
• Additional $0.01 per share and $0.005 per share is charged for each share over 1,000 for Gold and Platinum members, respectively
• Poor trading tools
• Few educational resources
• Limited research services

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