TradeStops’ easy-to-master tools help you make better investing decisions, so you can act with confidence – whether you’re a novice investor or a grizzled market veteran.
Whether you’re an upcoming trader or a grizzled market veteran, chances are that you’re familiar with the challenges that the markets pose. Things can change really fast. Winning positions can change into losing ones in a jiffy.
So, how do you ensure that you remain disciplined all through? TradeStops is a web-based service that claims to provide timely alerts so you know when to enter or exit trade positions. Just how effective is this TradeSmith-owned tool? And how much does it cost? Stick around to find out.
TradeStops Review: An Overview
This is an online service that enables you to track stocks, EFTs, and mutual funds. It comes with a built-in algorithm that can be customized to send timely alerts.
What’s more, although TradeStops is not a trading platform, it provides you with the ability to synchronize your strategy with more than 15 brokerage firms. These include:
- TD Ameritrade
- Merrill Edge
- Edward Jones
- Wells Fargo
- Capital One
- Charles Schwab
- Morgan Stanley
- Morgan Stanley Online
- T-Rowe Price
The list of brokers supported by Tradestops goes on and on. And the best part is that besides having such a wide presence in the US, this service also tracks equities in Canada, UK, Germany, and Australia.
Who Owns It?
Behind this relatively popular alerts service is a company called TradeSmith. Tradesmith is based in Spring Hill, Florida and was originally created Richard Smith. In 2020, Richard reportedly sold off the company to an undisclosed financial publisher. Its valuation at that time was, however, not disclosed.
The company has been around since 2013 and is estimated to have between 51 and 200 employees.
However, a lot about the firm in its entirety remains a closely guarded secret. While this is not usually a bid deal to most people, we think that the lack of transparency by the service provider might leave any serious trader a bit suspicious.
Fortunately, there are no red-flags raised about this company so far. And the fact that they work closely with some of the world’s most trusted brokers provides them with some level of credibility.
To go beyond what the usual TradeStops reviews do, we’d like to take a closer look at each one of the service’s key features.
1. Alerts Service
As we have already clarified, this isn’t a trading platform but rather a tracking and alerts platform. We feel that alerts are quite important. In a market crowded with data, mixed opinions, and fake news, your best bet is to only keep up with the information that matters the most to you.
Luckily, the service we’re examining today has some well-made alerts features. These are powered by a proprietary algorithm.
Our two favorite alerts are the VQ (Volatility Quotient) and SSI (Stock State Indicator). Let’s take a closer look at each one of them.
2. Volatility Quotient
First things first, volatility is one of the key benefactors in the world of stock trading. The more volatile a stock gets, there more the chances it offers to make cash.
The VQ alerts service uses the company’s proprietary algorithm to track market volatility. This way, it can alert you on the suitable entry signals as well as exit ones.
Above all, the VQ provides you with data on price targets. That way, you can easily conquer your fears and beat the market like a pro.
3. Stock State Indicator
This is a highly conservative signal service. You basically need to use it to indicate the overall health of your stock.
For instance, if your open trade moves below a certain threshold, the SSI can automatically trigger a stop-loss alert. All the data provided by this indicator is relative to the research done by the proprietary algorithms provided by Tradesmiths and is based on generally what’s normal for particular stocks.
4. Free Position Size Calculator
This is yet another incredible feature provided here. The calculator gathers your data and assesses your risk tolerance advising you accordingly.
Basically, the calculator will ask you for some data. Once you specify how much cash you would be willing to lose in case a trade doesn’t go your way, the system will provide you with several alternatives.
The alternatives differ depending on where you have set your trailing stop. But in general, the options given by this calculator can come in handy in helping you easily set up buy and sell orders.
What’s more, the Position Size Calculator is loaded with important instructions that anyone can seek guidance from.
5. Syncing with Brokerages
Since this isn’t a trading platform, it would ordinarily be cumbersome to tap into the alerts to make timely decisions without direct access to brokerage services. Fortunately, the team at TradeStops is keen on simplifying this.
At the time of compiling this review, the stock alerts services accommodated more than 15 brokerage firms. As such, this makes it easy for anyone to active follow their investment portfolios from one place i.e. the TradeStops site.
Another key benefit of this feature is that it makes it easy to track stocks that aren’t in your portfolio.
6. Learning Resources
You’ve got to appreciate the fact that this platform has a one-stop-shop library. Think of it as a public library that has got some essential tools to help you enhance your skills. And if you’re a complete beginner, the 10-video “Getting Started Series” is all you need to get up and running.
If you’re a skilled trader and are looking for in-depth information, a simple search of the platform’s extensive database is all you’ll need.
Behind the site is a team of researchers and publisher who provide you with insights and updates. And the best part is that some of these are delivered to you straight to your email inbox.
7. Risk Rebalancer
What if you’re looking for a low-risk way to invest? The Risk Rebalancer tool might be all you’ll ever need to have more of your capital allocated to equities with low volatility. This particular tool takes a portfolio of your stocks and rebalances the available capital among your selected stocks.
However, it’s worth noting that this feature is exclusively available to subscribers with premium and lifetime accounts.
8. Asset Allocation Tool
Found in the Research tab of the TradeStops platform, the Asset Allocation tool comes in handy when you need to develop a diverse portfolio. Remember, diversification enables you to cushion yourself from extreme losses even when things fail to work in your favor within your key stocks.
Indeed, when it comes to establishing a strategy that tempers losses even in a bearish environment, expert investors caution against putting all your eggs in one basket.
And if this school of thought rings a bell, the asset allocation tool provided by TradeStops would be of immense benefit.
The Cost of TradeStops
It’s now time to address the elephant in the room, “How much does TradeStops cost?” Well, the company doesn’t clearly state its pricing policy on its official website. They merely provide you with the option to opt-in to the free trial service. Luckily, we did a bit of digging for you and here’s a breakdown of the cost of each one of their plans.
As its name suggests, this is the most basic platform provided here. It provides you with core tracking features. You can opt for it if you’re interested in gaining the basic risk management and wealth creation skills. However, this plan sets you back some $228 per year. That’s equivalent to $19 per month.
In this plan, you. Gain access to all the Basic plan features along with premium alerts and the company’s proprietary algorithm. The plus pan goes for $588 per year which is equivalent to 49 bucks per month.
If you’re looking for a lot more than what the plus plan has in store for you, then the premium plan is your best bet. This plan provides you with everything you’d get within the plus plan along with essential analytics, portfolio VQ as well as Risk Rebalancer. This tier goes for $999 per annum equating to 84 bucks per month.
This is the uppermost tier that you can subscribe for. It provides you with access to all the tools provided by the vast Tradesmith empire namely TradeStops, Ideas, and Crypto. However, you will need to part with a whopping $5000 per year for that.
Clearly, TradeStops doesn’t come cheap. Luckily, there’s a 30-day free trial window which you can take advantage of to sort-of test-drive the system. On top of that, you can always get in touch with their customer support team during business hours for more information.
- Intuitive features
- Simplified syncing with brokerages
- Different tiers to choose from
- Good customer support
- Doesn’t come cheap
- Best features only available under the most expensive plans
- Lack of transparency in some instances
We think that TradeStops is a pretty decent plan solution. It can come in handy if you’re looking for a complementary service to help you beat your fears and biases. However, it doesn’t come cheap.
Plus, we feel that this company is hiding way too much information from the public. Since Dr. Smith sold it, no one really knows how much its valued at and who really owns it.
Also, the company doesn’t clearly indicate the prices of the different plans available on offer unless you first sign up for the free trial offer.
Verdict: Good service but there’s still room for improvement.