WellsTrade: Wells Fargo’s Innovative Platform

Investing is an excellent way to build wealth over time, and an easy way to dive in is by opening a brokerage account. Wells Fargo has its own digital trading platform called WellsTrade, where you can buy and sell financial instruments like stocks, mutual funds, ETFs, and bonds.

In this review of WellsTrade, we’ll dissect the platform to help you determine if it’s the right fit for your investment journey. 

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WellsTrade: Overview

WellsTrade is a digital trading hub designed to make online investing in stocks, bonds, mutual funds, and ETFs launched by Wells Fargo in 2008, It comes packed with features that appeal to investors, whether they’re beginners or pros.

Wells Fargo has been a trusted name in banking and financial services for over a century and a half. Its online brokerage arm, WellsTrade, extends this trust by offering a broad spectrum of investment choices. The platform is engineered for ease, making it a go-to choice for investors at any skill level.

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Regulation and Registration

Wells Fargo Advisors is regulated by the SEC, FINRA, and various state securities regulators in the US. Additionally, they are registered with the FCA in the UK and ASIC in Australia, adhering to international financial regulations.

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Account Types of WellsTrade

Standard Account

A standard taxable investment account is ideal for general investing and wealth building. This type of account offers no restrictions on contributions or eligibility aside from the account minimum. However, it’s important to note that potential earnings from this account are subject to taxation.

Traditional IRA

Traditional IRA allows pre-tax income contributions, taxable withdrawals, and tax-deferred earnings growth. Early withdrawals may incur penalties, with required minimum distributions starting at age 73. Open to anyone with earned income, regardless of age.

Roth IRA

Roth IRA involves after-tax income contributions and tax-free withdrawals. Contributions are penalty-free, and earnings can be withdrawn tax-free after age 59 ½, provided the IRA has been open for over 5 years. There are no required minimum distributions, with eligibility based on annual income.

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Deposit and Withdrawal

Funding and withdrawing from a WellsTrade account offers various channels. Funding options include transfers from Wells Fargo or external bank accounts, deposits via mobile devices, in-person at Wells Fargo branches, mail, or wire transfers. Withdrawals can be requested through the WellsTrade IRA Distribution form for one-time or automatic distributions. The process duration and fees vary based on the method, with banks potentially charging for wire transfers.

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Products in WellsTrade

WellsTrade has a somewhat narrow scope regarding the types of assets you can trade. The platform doesn’t support trading in fractional shares, futures, futures options, foreign exchange, or cryptocurrencies. However, it does offer a broad range of mutual funds that come with no transaction fees, making it an attractive option for investors who prefer a more hands-off approach.

• Long and short stocks
• OTCBB (pink sheets)
• Over 3,000 mutual funds, 1,800 with no fees
• Bond trading via a specialized agency
• Options for one leg (limited number of spreads available via a live broker)
• Robo-advisor and Intuitive Investor on website and app.

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Trading Platform of WellsTrade

Wells Fargo, a well-known financial institution, offers its own online trading platform known as WellsTrade. This platform provides Wells Fargo customers with the ability to engage in online trading, including various investment options like stocks, ETFs, mutual funds, and options.

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Fees of WellsTrade

WellsTrade by Wells Fargo Advisors offers competitive brokerage fees with $0 commissions for online or automated telephone trading of stocks and ETFs, and a $25 fee for agent-assisted trades. Mutual funds have varied fees, with no-load, no-transaction fee funds at $0, and a $35 fee for no-load transaction fee funds. 

Options trading costs $0 commission plus $0.65 per contract online, with agent-assisted trades incurring a $25 fee plus the online trading commission. Fixed income investments and margin trading are also available, with specific fees for fixed income transactions and a detailed margin account structure.

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WellsTrade Promotions

WellsTrade doesn’t offer any promotions at the moment.

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Customer Support

• Phone: +1-800-956-4442
• Mail: WELLS FARGO ADVISORS Attention: N9160-01P PO Box 77046 Minneapolis, MN 55480-9902

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Pros & Cons

Pros Explained

• WellsTrade allows you to trade online without any fees, except for penny stocks. However, a $25 fee is applicable for trades made over the phone.
• The website and mobile app are user-friendly and maintain a consistent look, making it simple to switch between devices.
• Manage all your Wells Fargo accounts effortlessly through a single application, streamlining your financial tasks.

Cons Explained

• While Wells Fargo’s in-house research is worth a look, the options for external analysis and screening tools are limited.
• The platform doesn’t offer real-time quotes. To get an updated quote, you have to manually refresh the page, making it challenging to keep up with market fluctuations.
• Unlike some major brokers that only charge a per-contract fee, Wells Fargo levies a commission on options trading and has a higher per-contract fee compared to its competitors.

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Is WellsTrade Worth Considering?

Aside from long-term investors who are already Wells Fargo clients, the limited toolset and scant educational resources may not appeal to the average investor. However, the high-quality research and top-notch phone support, along with the ability to link with other Wells Fargo accounts, could tip the scales for the right investor. Therefore, it’s crucial for potential clients to thoroughly review WellsTrade before making a decision.

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FAQs

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