Is Capital One Investing the Right Fit For You?

Before Capital One Investing started getting the deserved recognition, they were known as ShareBuilder in 1996.

Nowadays, they are a top-class brokerage that offers fantastic customer service and automatic investments.

How much does it all cost?

Even though there are other discount brokers who ask for less money, Capital One Investing has its advantages.

Their commission structure is basic. If you want to trade regular stocks,  it will cost you $6.95. Options are $6.95 and an additional $0.75 per contract. However, they also offer automatic investments which cost $3.95 per each one.

Automatic investing is one trait that sets them apart from the rest. Many investors want something that will help them stay on track with their trades. And Capital One Investing offers such services.

If you compare them to other brokerages, they are somewhere in the middle when it comes to their pricing.

How do they treat their customers?

Capital One Investing seems to have figured out that clients love excellent customer service. Because of that, we were pleasantly surprised. The phone operators were polite and helpful, and the email exchanges were positive. Even their live chat works flawlessly.

The only downside is that they take too long to reply to the emails. However, it is still better than placing your on hold for more than five minutes.

Capital One Investing Website

As far as their Internet presence goes, we loved how easy it was to navigate their website. The design is intuitive, and you can tell that they have put a lot of thought into it.

Furthermore, we could easily research performance and place trades without too much hassle.

However, it would be great if they could replace the My Account overview with a customizable dashboard.

Is there a way to research financial instruments?

One of the best parts of Capital One Investing is the fact that they went the extra mile when it comes to research. You can easily pull up different third-party articles about funds you are interested in.

Furthermore, they value quality over quantity. Hence, they support only about 1,000 mutual funds. However, they only include no-load funds or those that do not have any transaction fees.

That is something that we agree with. Paying higher fees doesn’t actually help your investments perform better.

In addition to that, they also help their clients reach the right decision by giving them the Fund Evaluator tool. With that, they can research any mutual fund and see if there are any alternatives to it.

Among other features, they also offer you a look at client portfolios with the Portfolio Allocation and Analysis tools. That way, they have maximum transparency – something you can rarely find with other brokers.

Website vs. Platform

Unlike some other brokers, Capital One Investing relies on their website. Therefore, advanced active traders might not get much use out of them, but it is fantastic for beginners.

They have a PortfolioBuilder which helps you create a diversified portfolio. You can add up to eight ETFs, and show your investment style and goals. Afterward, you can sell it for $18.95.

However, it is not automatized, and you have to “do it yourself.” Robo-advisor services might be a better choice if you do not have the time to overlook the portfolio or select the funds manually.

Other factors to consider

Before you try their services, remember that Capital One doesn’t have a great variety of investment options. Furthermore, they do not offer any complex trades, after-hours trades or shorting.

However, this is the second company, apart from Bank of America Merrill Edge, that offers other services. They offer credit and debit cards, as well as checking and savings accounts. You can even get a home mortgage.

There is also a universal login for all accounts so that you can easily manage your finances. Moreover, in 2016, they started providing advisory services with a minimum investment of $25,000. Annual fees start at 0.9%.

The verdict

Capital One Investing is a fantastic broker for its target market: casual investors. Even though they do not offer a variety of investments, they still do their job well.

Their best trait is the option of automatic investing which is perfect for people who value a more relaxed approach to trading. Furthermore, their website offers easy access to the markets.

However, if you are an advanced trader, there might not be much they can offer you to enhance your trading knowledge.


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