TradeKing Introduces TradeKing Advisors, Aims to Create New Value Leader in Online Advisory

TradeKing’s Richard J. Hagen, Jr. to Lead Advisory Arm as President and CEO

CHARLOTTE, NC—June 30, 2014 – An innovator in online financial services, TradeKing Group announced today the formation of a new subsidiary: TradeKing Advisors. TradeKing Advisors, Inc. is an SEC-registered investment advisor that offers professionally managed investment portfolios online at an affordable price. TradeKing co-founder and long-time president and COO Richard J. Hagen, Jr. will take on the role of president and CEO of TradeKing Advisors, which will launch its offering for independent investors seeking professional advice this summer.

Trusted, Value-based Advisory

TradeKing Advisors intends to offer a new level of value in advisory services with portfolios designed and monitored by the experts at Ibbotson Associates, Inc, a registered investment adviser and part of Morningstar’s Investment Management group. TradeKing Advisors will actively manage and rebalance client accounts as necessary to keep portfolios in line with Ibbotson’s target allocations. This caliber of portfolio management, once reserved only for the wealthiest investors, will now be available through TradeKing Advisors to investors with balances as low as $10,000.

“We’ve seen through our brokerage business that while many people are very good at self-directed investing and managing their own investments, others struggle,” said Hagen. “Many just don’t have the time or expertise to navigate the market’s fluctuations themselves. Others, particularly younger investors, haven’t had the kind of assets needed to get the attention of a top portfolio manager. TradeKing Advisors will attempt to solve that disconnect by making professionally managed portfolios accessible to more people at all stages of their life at an affordable price.”

TradeKing Group CEO Don Montanaro added, “What TradeKing did for online trading, TradeKing Advisors intends to do for online advisory services. We aim to make managed investing simpler and fairer for all investors, while adding a level of trusted customer service one would never expect from an online offering. It’s the natural next step for our brand and for many of the investors we serve.”

Simple and Affordable Portfolio Management

To invest in a TradeKing Advisor portfolio(s), existing TradeKing clients follow this simple online process:

  • Answer eight questions online to gauge their risk tolerance and investment time horizon,
  • Select one of the recommended model portfolios designed by Ibbotson composed of exchange traded products (ETPs),
  • Set up and fund an account online,
  • Let TradeKing Advisors monitor and automatically rebalance their portfolio when needed to keep in synch with their target asset allocation.

TradeKing Advisors will offer two groups of portfolios: the Core and the Momentum groups. Each will contain five portfolios that range from conservative to aggressive, and allocate to a variety of asset classes using a combination of historical and current market data involving risk, return and correlation. The fee for Core portfolios is 0.75% of the account balance annually with a $10,000 minimum balance. The fee for Momentum portfolios is 1.00% of the account balance annually with a $25,000 minimum balance. For clients with account balances over $250,000 the fees for each portfolio are reduced by .25%. These fees represent a significant reduction from current fees charged for comparable expertise, management and diversification.

Leadership in Service

Over the course of TradeKing’s eight-year history, the firm has been recognized consistently by independent industry publications such as Barron’s and SmartMoney for its exceptional customer service. Under Hagen’s leadership, TradeKing Advisors is poised to deliver that same client-first mindset. The firm will offer a dedicated team of professionals with proven credentials in investment advisory services to help guide and assist clients whenever needed.

“Service is a very key differentiator for us,” added Hagen. “Most of the new, smaller online advisory offerings don’t have the luxury, or the skill set for that matter, to offer support to clients when they need it and through whatever channel they choose. Fast, friendly and knowledgeable service is something that’s part of the TradeKing DNA; we do it extremely well and will offer it to TradeKing Advisor clients from day one.”