Capital One Investing Platform Review – How Does This Broker Rank?

Capital One Investing is actually not a new service. The company started out more than 20 years ago as ShareBuilder with the goal of making online investing both convenient and affordable. In 2011, Capital One bought the company and renamed it. These days, Capital One Investments is still a successful company, mainly thanks to its easy-to-navigate website, automatic investments, and friendly customer service.

Fees and Commissions

Capital One is actually the only online broker on the market that offers a separate rate to its customers to cash in on of discounted automatic investments. Regular trades cost 6.95 dollars per trade, while options trades cost 6.95 along with a 75-cent fee per contract. On the other hand, automatic investments only cost 3.95 dollars each. 

Compared to some of the larger names on the market, like Fidelity Investments and TD Ameritrade, Capital One is in line on a per-trade basis.

However, the platform stands out with its automatic investments – a.k.a. The ShareBuilder plan – that enables traders to automatically purchase shares of more than 1,100 different mutual funds. These automatic investments occur every first Tuesday of the month.

 One major drawback for Capital One investors this year is that the ShareBuilder Plan doesn’t support ETFs anymore. Ease-of-use is what makes this platform so attractive to investors who just want to “set it and forget it” with their retirement and personal accounts.

Interface and Ease-of-Use

Speaking of user-friendliness, we should definitely say a few words about Capital One’s official website. Everything from performing research to placing trades is a great experience, even if you never used the site before.

 The design is very clean, and it’s clear that the designers took their time before launching the site to make sure that Capital One investors have a quality user experience. The only complaint we have is the lack of customization options on the “My Account” page. Other than that, the site is fantastic.

Research and Studies

Capital One’s coverage of ETFs, equities, and mutual funds is surprisingly good, thanks to the use of Morningstar as a primary provider. While the platform supports only around 1,000 mutual funds, you’ll be impressed with the depth of research it provides.

The Fund Elevator tool that analyzes any mutual fund users would like to see is there to help you make a good financial decision. If you want to dig a little deeper into research, you can always build a side-by-side stock comparison and evaluate the most important data. What’s more, screening for investment ideas is also pretty effortless. 

Research Capital One Investment offer extends well-beyond vetting possible trades – it also includes user portfolios. The Portfolio Analysis tool will allow you to access your portfolio returns and allocation, and break down your equity exposure by the individual fund. This is important to note because most online brokers won’t give you a full view of your portfolio.

Platforms, Features, and Tools

Unlike most leading brokers out there, Capital One doesn’t offer a desktop or a web-based platform. The company relies on its official website instead. In the past, Capital One had the Portfolio Builder, a tool that enabled users to create their own diversified portfolios. Unfortunately, Capital One stopped using the tool back in January. There simply isn’t anything for seasoned traders and investors to be excited about because they are not Capitol One’s target audience. 

Other Things to Note

If you’re looking to make some serious investments, we should warn you that Capital One’s offering is pretty weak. The platform doesn’t support after-hour traders or any complex options. But it’s still the only brokerage that also offers debit and credit cards, home mortgages, and saving accounts.

Two years ago, Capital one Investments started offering consultant service. Therefore, if you’re a beginner looking for some professional portfolio advice, you have Capital One Advisors Managed Portfolios. Yearly management fees start at 0, 9% and the minimum investment is 25,000 dollars.

The Bottom Line

Like we mentioned in the opening paragraph, the platform truly shines in its user-friendliness. Furthermore, it offers some in-depth research and customer service agents take less than two minutes to respond to customers. However, it has a limited offering of features, tools, and investments. This is what makes the platform unappealing to so many serious options and stock traders. 

And while Capital One has a lot less to offer in terms of educational content compared to Charles Schwab, it provides just enough research to keep the casual investors engaged. Placing trades is a breeze, and it’s practically impossible to feel overwhelmed on the site. When it’s all said and done, Capital One is a great solution for casual investors and people looking for automatic investments.