WellsTrade® review 2024

WellsTrade offers some convenient features for existing Wells Fargo customers, but for the average trader, this brokerage account delivers a rather basic investing experience. You’ll get the industry standard of commission-free stock and ETF trades, and access to about 1,650 no-transaction-fee mutual funds. 

But WellsTrade will leave more active traders wanting more. In 2023, the broker stopped offering over-the-counter stocks, also known as penny stocks, and its trading platform doesn’t offer much in the way of premium features. There are also high account fees, though some can be avoided.

Investors looking to consolidate their accounts with a large bank may be better off with Merrill Edge (associated with Bank of America) or J.P. Morgan Self-Directed Investing. Active traders should consider Interactive Brokers.

Pros: Where WellsTrade stands out

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 all-in-one approach.

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 you can consolidate under the same roof. 

No commissions for stock and ETF trades

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 — about 1,650 in total. 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.

Fractional shares

Wellstrade has also upped its game on fractional shares, allowing investors to purchase partial shares as well as reinvest dividends into partial shares. Its purchase program – called Stock Fractions – lets clients buy hundreds of stocks and ETFs with amounts as low as $10, meaning anyone can get in the game with a high-priced stock. This feature helps new investors build a diversified portfolio more quickly. And while the minimum is a bit higher here than at the best brokers for fractional shares ($10 vs $5), that's hardly a dealbreaker.   

For those looking to reinvest dividends, you can control which stocks and funds reinvest dividends individually. So you get to pick which securities you want to reinvest, unlike some brokers where it's an all-or-nothing choice.

Cons: Where WellsTrade could improve

Costly trading commissions for options, mutual funds and more

While WellsTrade has dropped its commissions for stock and ETF trades, its prices for other types of trades have largely remained the same. Fortunately, it dropped its commission on options trades to the industry standard of $0.65 per contract. Prior to that, traders paid a $5.95 base commission plus $0.75 per contract. Still, there are other brokers better suited for options traders.

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, WellsTrade 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. 

WellsTrade charges a pricey $49.95 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 also cost $49.95.

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 the job 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 several different phone number choices depending on your desired action. The hours of customer support can vary too, which makes the whole process feel overly complex.