WellsTrade Review 2024

Our Take

WellsTrade is designed for infrequent, buy-and-hold investors who are focused on equities. WellsTrade customers can trade stocks, exchange-traded funds (ETFs), mutual funds, fixed income, and options, but lack futures and cryptocurrency trading capabilities. 

It might be a good fit if you're a U.S. resident who already does business with Wells Fargo, whether that's through a bank account or mortgage. One advantage to having an investing account if you already have accounts with Wells Fargo is that it's simple to move money from one account to another.

Introduction

Wells Fargo was founded in 1852—amidst the California Gold Rush—and has since grown to become the nation's third-largest bank by assets, behind only JPMorgan Chase & Co and Bank of America. During the late 2010s, the company was mired in a litany of costly scandals involving fake customer accounts, discriminatory lending practices, securities fraud, and issues with auto loans and mortgages. As a result, the company paid billions in fines and restitution. 

Today, Wells Fargo is working to restore its image and regain trust by focusing on technological improvements and customer service. The company offers various financial products, including banking, credit cards, insurance, mortgage loans, wealth management, and brokerage services. Its brokerage division, WellsTrade, is intended to serve Wells Fargo Bank customers who want the convenience of managing their investments at the same institution where they have checking accounts and mortgages.

WellsTrade was late to the zero-commission game but finally joined the pack in December 2019, dropping commissions for listed stocks and ETFs to $0. Investors who prioritize analyst research and sell-side recommendations may also find what they are looking for at WellsTrade. However, in both cases, active investors looking for low costs and high-quality tools will be disappointed by what little WellsTrade has to offer.

Pros & Cons

Pros Explained

• No commissions for stock and ETF trades: Like most brokers today, WellsTrade offers $0 online stock and ETF trades (excluding penny stocks). Keep in mind that if you place a stock or ETF trade over the phone, a $25 agent-assisted trading fee will apply.
• Easy-to-use website and mobile app: The website and mobile apps are simple to navigate and appear very similar, so switching between the two platforms is easy.
• Single app gives you access to all Wells Fargo accounts: You can manage all your Wells Fargo accounts from a single website or app. This "one app to rule them all" can be a handy way to keep track of your finances.

Cons Explained

• Limited research offerings outside of proprietary Wells Fargo analysis: Although the Wells Fargo proprietary research offerings are worth considering, there is very little else available. Screeners are limited, and there are no options for analysis at all.
• Commissions on options trades: Online options trades cost $0.65 per contract, compared to platforms such as Robinhood, which charge no commissions. 
• Static quotes: Streaming real-time quotes are not available. When you first bring up a quote, it displays in real time, but you have to refresh the page to update the price manually. This extra step can make it difficult to gauge market movements.

Usability

Getting started with a new WellsTrade account is relatively simple. You can sign up for a standard (brokerage) account, traditional IRA, or Roth IRA on the WellsTrade website or mobile app. Most applicants can provide their signatures electronically; however, you may have to print out some forms and mail them in, which will delay the opening of your account. You’ll also be asked to sign a few extra forms if you want to trade options or use margin. 

The sign-up process for current Wells Fargo customers is fast-moving. If you already have a relationship with Wells Fargo, your personal details automatically populate the application, which can be a timesaver. Because it’s a bank-based online broker, WellsTrade makes it easy to move cash from your checking or savings account to your brokerage account, both on the browser and mobile app.

The web-based platform is easy enough to navigate, but it's slow. Most account functions, research tools, and order entries appear under nested menus. When you first log in, you see an overview of your brokerage account with balances and a chart that shows your asset allocation. You can set up account groups and change out the data displayed on your portfolio listing, but that's about it for customization.

You have to make a few clicks or taps on the menus to open an order ticket. The mobile app is essentially the same experience as the web version, scaled to fit a smaller screen.

Trade Experience

WellsTrade makes it easy to enter orders for stocks, single-leg options, ETFs, and mutual funds. WellsTrade does not offer conditional order types, such as one-triggers-the-other, but you can use standard limit, market, and stop orders. The order entry process is simple, but it takes a while to navigate from one page to the next, which could become tedious (and impractical) for active investors. It's possible to start an order from watchlists or screener results, and you can make tax lot choices while entering orders.

Single-leg option orders can be entered online, but the maximum is two-leg positions. You'll have to make a separate transaction to create a covered call or protective put when opening a long stock position. If you're a regular spread trader, this is not the brokerage for you; you will have to call a broker to make those trades as a single order. In addition to the inconvenience, those calls can get pricey quickly. On top of the $0.65 per options trade, there is a $25 fee to place an order through an agent.

Mobile Trade Experience

Placing a trade on a mobile device is similar to the web order entry experience. To close a position and avoid making errors, it's a good idea (especially on mobile) to start from your positions page and then tap on the trade link.

Range of Offerings

WellsTrade supports a limited range of asset classes, but it’s sufficient for most long-term investors who aren’t interested in virtual currencies. There's no access to futures, futures options, crypto, or forex trading. Passive investors can choose from a wide selection of no-transaction-fee mutual funds and access a decent mutual fund screening tool.

In September 2023, WellsTrade introduced fractional share trading, allowing customers to invest in stocks and ETFs with as little as $10 per trade.

Here’s what you can trade on WellsTrade:

• Stocks
• ETFs
• Mutual funds (over 10,000 total, and over 2,800 with no load and no transaction fee)
• Bonds (Treasurys, municipal, and CDs), available via agent only
• Single-leg options (limited number of spreads available via a live broker)

Order Types

Although WellsTrade is suitable for passive investors who use only basic order types, It is not the broker for you if you need to place advanced orders. WellsTrade allows only market, limit, or stop-limit orders online. There are no conditional orders available, and you can't place trailing stop orders. Market-on-open and market-on-close orders can be placed only with the assistance of a live broker (which triggers a $25 fee).

Trading Technology

Wells Fargo routes trades according to its proprietary smart order routing algorithms. According to regulatory disclosures, the company may accept payment for order flow (PFOF) for some trade types, particularly options. WellsTrade’s platform does not support backtesting or automated trading.

Costs

WellsTrade's commissions are mostly in line with the industry. There are two notable exceptions: the high fee for trading penny stocks and the base fee for trading options.

• Stocks (except penny stocks) and ETFs: No commission
• Penny stocks (stocks priced at less than $1 per share): The greater of $34.95 or 3.5% of the principal
• Options: $0.65 per contract online or by automated telephone; $0.65 per contract plus $25 with a live agent
• Options exercises and assignments: $25 with a live agent 
• Treasury Bills, Notes, and Bonds: No commission
• All other types of fixed income: Subject to markup or markdown
• Mutual funds: $0 for no-load, no-transaction-fee funds; $35 for no-load funds
• Margin interest: 14.25% on a $10,000 margin debit balance; 12.75% on a $100,000 margin debit balance (adjusters available for households with at least $250,000 in assets under management)
• Account closure: $0
• IRA termination: $49.95; waived for account holders over 70½ and accounts closed due to death or disability
• Outgoing account transfer: $49.95
• Outgoing wire: $30 for domestic; $40 for international
• Overnight delivery of checks from the margin department: $15

How WellsTrade Makes Money From You and for You

As brokerages move away from a commission-based revenue model, it has become unclear how they stay in business. Here are some behind-the-scenes ways WellsTrade makes money from your investments.

• Stock program: WellsTrade earns revenue by loaning stocks in your account for short sales. Unlike some brokerages, it does not share any portion of that revenue with you.
• PFOF: Wells Fargo may engage in PFOF, a controversial but common strategy that involves earning money for sending orders to specific market makers. Regulatory disclosures show that Wells Fargo takes PFOF on options trades.
• Margin accounts: When you borrow for margin trades, Wells Fargo charges you interest on the amount borrowed.

Account and Account Amenities

WellsTrade offers many of the account and research amenities you would expect from a large broker, including screeners, market news, and research reports.

Stock and ETF Screeners

The landing page for asset screening lets you look for many types of investments, including stocks and ETFs. The screeners have limited functionality, but you can create a trade ticket directly from the search results list.

The company doesn't offer any preset screens, so you must make your own. It's possible to screen based on technical and fundamental indicators, and you can save a screen for future use.

Mutual Fund Screener

Wells Fargo has a mutual fund screener that allows you to search for funds based on numerous criteria. The tool makes it easy to find no-transaction-fee, no-load funds, too. WellsTrade offers a recommended list for mutual funds, which is updated regularly.

Options Screener

WellsTrade does not offer an options screener.

Fixed Income Screener

The bond screener allows you to search through the available inventory for a bond that fits your specific needs. However, you must place trades with a live broker. The screener supports municipal, corporate, agencies, CDs, and Treasurys.

Tools and Calculators

WellsTrade customers have access to the “My Retirement Plan” savings calculator, which lets you check where you are today, see where you're headed, and get next steps and guidance. 

There’s also an asset allocation tool that lets users compare their portfolios to nine preset asset allocation models.

Beyond the few tools that address specific needs, the Wells Fargo mobile app also offers LifeSync, a goals-tracking program that provides a snapshot of portfolio performance alongside your goals and tailored educational content to help you reach those goals.

Trading Idea Generator

WellsTrade offers a curated list of trades and securities screened by Wells Fargo Advisors research analysts.

News

Market news is provided, with most of the research created by internal Wells Fargo analysts. The news is real-time but not streaming, which means you have to refresh the news feed manually.

Third-Party Research

WellsTrade customers have access to third-party resources from Morningstar, Refinitiv, Moody's, S&P, and Lipper—a healthy selection. The third-party research reports, market commentary, and investment recommendations provided to WellsTrade customers are above average compared to the industry. 

Investors focused on long-term holdings will likely appreciate how much sell-side research is available to them. 

Customers also have access to reports from Wells Fargo Investment Institute, Wells Fargo Advisors Commentary Reports, and Wells Fargo Securities. You can follow a specific Wells Fargo analyst if you find one who fits your investing profile.

Charting

The charting functionality on WellsTrade is basic compared to what many other platforms offer. You can choose a chart type (mountain, OHLC, candlestick, filled candles, line, bar, and dot) and select from various technical studies. The charting features may be adequate for buy-and-hold investors, but more frequent traders will likely be disappointed by its limitations.

Cash Sweeps

You can earn a return on uninvested cash balances in your account with WellsTrade's sweep feature. There are three ways to earn a return: a standard bank deposit sweep, an expanded bank deposit sweep, and a money market fund sweep. Eligibility is based on the type of investment account and account ownership.

Fractional Dividend Reinvestment

WellsTrade offers a dividend reinvestment plan that lets you reinvest some or all your cash dividends. You can enroll online or through the Wells Fargo mobile app.

SRI/ESG Research Amenities

WellsTrade customers can screen based on socially responsible investing (SRI) and environmental, social, and governance (ESG) factors via Morningstar.

Portfolio Analysis

WellsTrade’s portfolio analysis tools are surprisingly robust. Investors can see charts, wheels, and tables that break down portfolio holdings by asset class.

Performance reports are easy to access and quite detailed, and you can customize them to produce results from a particular period. The account landing page presents a view of the entire household, which you can customize as desired. You can define up to five different views.

The asset allocation wheel lets you compare your portfolio to a variety of asset allocation models. It creates a to-do list that tells you what transactions you'd have to make to match your desired allocation model.

Still, some important portfolio analysis tools are missing from the WellsTrade lineup. For example, you can't consolidate accounts from other financial providers to see a complete financial picture. Also, you can't estimate the tax impact of a proposed trade, and there are no tax reporting tools. The platform also lacks a trading journal.

Education

WellsTrade’s educational offering is light compared to the competition. Where others have invested in educational videos and articles, WellsTrade has yet to provide the same level of educational content. 

Still, the platform provides FAQ pages and other brief snippets. Wells Fargo regularly posts short videos on its YouTube channel about personal finance and the economy, but there are few webinars and articles that teach new investors the ideals of trading.

New investors who struggle with basic concepts or navigating common analysis tools won't find much help. For example, investors with limited experience screening for stocks may have trouble navigating the screening tools on their own.

Life planning tools on the Wells Fargo Advisors site cover marriage, job changes, divorce, and the like. The Retirement Center includes tips for planning for—and living in—retirement. Some educational content is included with the retirement planning tool, but it lacks depth. WellsTrade seems to focus mainly on clients who rely on support staff to help them with their questions.

Customer Service

The investment customer service phone number is available from 8 a.m. to midnight. There are no online chat capabilities, but live brokers are available during market hours.

Security and Reliability

Two-step verification lets you activate an additional layer of security when you access your accounts online by entering a unique Advanced Access verification code sent to your mobile device or phone or from an RSA SecurID device. Biometric entry is enabled for mobile apps.

Excess of Securities Investor Protection Corporation (SIPC) insurance from London Underwriters is available up to an aggregate limit of $1 billion (including up to $1.9 million for cash per client).

Wells Fargo was also at the center of many costly scandals in the late 2010s. In April 2018, Wells Fargo, the Consumer Financial Protection Bureau (CFPB), and the U.S. Office of the Comptroller of the Currency (OCC) reached a $1 billion settlement for mortgage lock and auto loan issues. The company paid out $2.09 billion for its role in the housing bubble just four months later.

Since then, the company has had several minor data breaches that exposed the sensitive records of a relatively small number of customers, including one reported in 2022 and another in 2024.

Transparency

It's reasonably easy to find information about pricing, commissions, service fees, and margin rates on the Wells Fargo website. Prices are clearly marked for each type of trade for each type of asset.

Available Account Types

WellsTrade has the typical account types, including:

• Individual taxable
• Joint taxable
• Traditional IRA
• Roth IRA
• Simplified employee pension (SEP) IRA
• Education savings account (ESA)

The Bottom Line

The limited tools and lack of in-depth educational materials at WellsTrade are unlikely to be attractive to most investors. Still, buy-and-hold investors who already have a relationship with Wells Fargo might find that the platform has just enough functionality for them. On the other hand, WellsTrade’s better-than-average research, good telephone support, and integration with other Wells Fargo accounts may be worth the disadvantages for the right investor.

Frequently Asked Questions (FAQs)

How Does WellsTrade Make Money?

WellsTrade makes its money through fees charged to customers, stock loans, and margin interest. Online stock and ETF trading is generally commission-free, but WellsTrade charges for penny stock trades and agent-assisted trades. Wells Fargo may also accept PFOF on some trades, particularly options.

Does WellsTrade Have Fees?

While stock and ETF trades are mostly fee-free, WellsTrade charges fees for options trades, non-Treasury fixed-income trades, and some mutual fund trades. There are also account fees, transfer fees, wire fees, and live broker fees to consider. Taken together, WellsTrade's fees are comparable to those of other brokerages.

Is WellsTrade the Same as Wells Fargo Advisors?

WellsTrade is Wells Fargo’s online brokerage. It's not the same as Wells Fargo Advisors, which is the name of the company's group of 12,000 financial advisors who work under the Wells Fargo brand. Wells Fargo Advisors provides financial services, including investment advice and wealth planning.

Is WellsTrade a Roth IRA?

WellsTrade is a brokerage, but it offers Roth IRA accounts, along with traditional IRA accounts and ordinary taxable brokerage accounts. You can open a Roth IRA with WellsTrade and choose the investments you'd like to place in the account.

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