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WellsTrade® review 2022

Bankrate senior reporter James F. Royal, Ph.D., covers investing and wealth management. His work has been cited by CNBC, the Washington Post, The New York Times and more.

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WellsTrade Logo

Best For

  • Wells Fargo customers
  • Buy-and-hold investing
  • Low commissions on stocks and ETFs

WellsTrade may be a good fit for existing customers of Wells Fargo or those who’d like to consolidate all their business with one financial institution. The broker will get the job done with no-commission stock and ETF trades, while mutual fund investors will like the 1,900 no-transaction-fee funds available. But active traders will likely not find what they’re looking for here, especially if they’re trading options since WellsTrade still charges a base commission — a practice the industry abandoned more than two years ago. So this broker makes a better fit for those who need a basic service and not a fully featured brokerage. 

If you want to consolidate accounts and are looking for a strong brokerage arm, check out Merrill Edge (associated with Bank of America) or behemoths such as Fidelity Investments or J.P. Morgan Self-Directed Investing. If you want to trade actively, then Interactive Brokers may be more your speed. 

WellsTrade at a glance

Star Rating

3
  • Cost: 3 of 5
  • Accounts and trading: 3 of 5
  • Research and Education: 3.5 of 5
  • Mobile: 3 of 5
  • Customer Experience: 3.5 of 5
  • Minimum Balance:
    $0
  • Cost per stock trade:
    $0
  • Cost per options trade:
    $5.95 + $0.75 per contract
  • Promotion:
    None
  • Commission-free ETFs:
    All
  • No-transaction-fee mutual funds:
    1,900+ NTF mutual funds
  • Securities tradable:
    Stocks, options, bonds, mutual funds, ETFs
  • Customer service:
    Phone Monday-Friday 8:30 a.m. - 9:30 p.m. ET, email
  • Account fees:
    $30 annual fee but can be avoided by enrolling in e-delivery et al, $95 IRA distribution fee, $95 outgoing transfer fee
  • Mobile app:
    WellsTrade offers the “WellsTrade Mobile” app on the Apple App Store and Google Play Store.

Top feature you’ll love

Integration with Wells Fargo

One of the biggest reasons to select WellsTrade is its integration with Wells Fargo’s banking operations, so you’ll be able to see your whole financial life at one company. There’s a real benefit to this kind of consolidation, and companies such as Wells do a good job offering small perks that encourage this kind of consolidation. 

Another advantage of aggregating your accounts is quick money delivery from a bank account to a brokerage account, or vice versa. That works substantially faster than a typical transfer from a bank to a separate broker, and you’ll have ready access to your cash for trading. On top of that, it’s just easier to have multiple accounts with one financial institution. 

And if you opt for Wells Fargo’s robo-advisor, called Wells Fargo Intuitive Investor, you’ll have another account that you can consolidate under the same roof. 

Pros: Where WellsTrade stands out

Low commissions

Like most of the industry, WellsTrade has moved to $0 commissions for stock and exchange-traded fund (ETF) trades. That’s an attractive price, to be sure, but it’s not the critical differentiator that it used to be. Clients should note that WellsTrade’s lower commissions are only available for stock and ETF trades, and do not apply to options trades (more below).  

Account minimum

WellsTrade requires no account minimum, a very investor-friendly move from a brokerage that doesn’t always have the most investor-friendly policies (more below). But opening an account with no minimum is the standard for the industry now. So while it’s nice to have, it doesn’t do much to differentiate the broker from its rivals.

No-transaction-fee mutual funds

WellsTrade offers a solid selection of mutual funds without a transaction fee — at about 1,900 in total, down from last year, according to our research. Still, that gives you plenty of choice when you’re searching for the fund you need. 

However, many funds from top companies such as Vanguard are not offered without a sales commission ($35). But you will find a large selection of no-transaction-fee funds from brokerage rival Fidelity Investments, though not its ZERO funds, which don’t charge a management fee. You can use the fund screener to find exactly what the broker does offer before you sign up.

The fund screener looks and feels pretty basic, with some key search criteria (fund family, Morningstar rating, expenses and asset class, among others) but it works well enough.   

Quick comparison of Brokerage options:
Brokerage Overall Rating Avg. Cost Per Trade Accounts and Trading
WellsTrade logo
$0 3 of 5
Ally Invest® review 2022 logo Read Our Review
$0 4 of 5
TD Ameritrade® review 2022 logo Read Our Review
$0 5 of 5
Vanguard® review 2022 logo Read Our Review
$0 3.5 of 5

Cons: Where WellsTrade could improve

Other trading commissions

While WellsTrade has dropped its commissions for stock and ETF trades, its prices for other types of trades have remained the same. For example, its commission on options trades remains stuck at a $5.95 base commission plus $0.75 per contract. And not only is the base commission higher than those of online rivals, so is the per-contract fee, by $0.10 to $0.25 over typical pricing at rivals such as Ally Invest. Now WellsTrade sits at the high end of the industry, lower than only Vanguard among major brokers, depending on exactly how you measure it.

And those looking to trade penny stocks priced less than $1 will face a stiff fee of the greater of $34.95 or 3.5 percent of their principal for each trade. So WellsTrade is not the place to trade these stocks.

If you’re looking at mutual funds, you’ll have to pony up $35 per trade. With a narrower selection of fee-free funds and higher commissions, Wells Trade won’t be the cheapest place to invest in mutual funds.

Account fees

When it comes to account fees, WellsTrade is not especially investor friendly. The broker charges a $30 annual fee for all accounts, though customers have a few ways to dodge it. Two of the easiest methods are to sign up for electronic delivery of documents or linking your account to Portfolio by Wells Fargo.

WellsTrade also charges a pricey $95 fee for terminating an IRA, meaning the complete distribution of the account, though it waives the fee for clients over age 70 ½ or accounts that are closed due to death or disability. An outgoing account transfer will cost a higher-than-typical $95.

Fractional shares

For a broker that offers the basics and so may appeal more to beginning investors, it misses one feature that would definitely appeal to this group — the ability to buy fractional shares. Fractional shares allow investors with a smaller balance to put all their money to work immediately rather than having to wait and buy whole shares. This helps new investors build a diversified portfolio more quickly.

However, WellsTrade does allow customers to reinvest any dividends into fractional shares. So while this feature is not quite as good, it still helps get money invested a little bit faster. 

Overall experience

The overall experience at WellsTrade just doesn’t feel like that of other brokerages, meaning the design is stripped-down and more basic. It has no trading platform for advanced traders, for example, and the trade interface is simple, albeit effective. So to be fair, though it lacks the razzle-dazzle of rivals, WellsTrade will get what you need done, especially if you’re a new investor or are buying infrequently.

Those who need more from a broker won’t find WellsTrade offering the same kind of perks – such as advanced stock screeners – offered by other brokers such as Fidelity or E-Trade at a $0 commission. However, you will get the broker’s own in-house research reports and market commentary as well as reports from Morningstar.

And other things just feel clunky. When you click the “Contact Us” menu, you’re presented with no fewer than 10 phone numbers to call depending on what seems like arbitrary or unclear account distinctions. While some customer support options run 24 hours a day, others run 8:00 a.m. to 12:00 p.m. or 8:30 a.m. to 9:00 p.m. So it can be a bit of a maze.

Bottom line

WellsTrade will probably appeal more to those who already have an account with its parent bank and want to consolidate accounts than it would as a rival to other more fully featured brokers: 

  • Low stock and ETF commissions are great for long-term investors, but those who do anything more than the occasional options trade will want to look elsewhere. 
  • The integration with WellsFargo will prove useful to those who bank there, and it offers a convenient way to speed transfers between brokerage and bank accounts. 
  • The lack of fractional shares, additional account fees and simply the overall experience may leave some customers looking for a better broker. 

Consolidation can be valuable, and if that adds value to your experience, check out if your large bank has a brokerage, such as J.P. Morgan Chase (J.P. Morgan Self-Directed Investing) or Bank of America (Merrill Edge). But Charles Schwab and Fidelity also offer fully integrated experiences, so you can get it all under one roof there, too. And traders on the hunt for an options broker should look at tastyworks for its capped commissions. 

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