Seaport Securities Broker Review
Seaport Securities is a discount online broker that was founded back in 1979 from the floor of the NYSE with the intention of providing self-directed traders deep discounts in commissions while still maintaining excellent executions and customer service. They offer the normal basket of instruments to invest in including: equities, options, bonds, Treasuries, ETFs and Mutual Funds. At first glance, their website is laid out in a user-friendly manner that is easy on the eyes. Their commission schedule is slightly on the higher side of deep discount brokers and their customer service was great when I could get through to them but they don’t have a chat service, which is something I personally like.
Commission & Fees
Seaport Securities has a fairly high commission rate compared to its competitors with equities using a per share fee structure starting at $14.95 for the first thousand shares and then you add $0.015 for every share after. With the base rate so high and a per share fee after the first thousand shares, its hard to justify these rates benefiting an active trader who likes to scale in and out of trades. Most firms either charge a per share fee or a straight one-rate fee so having both in their commission structure adds up. For instance if you place a trade of 2,000 shares at TD Ameritrade it’s $9.99 per trade. With Seaport Securities is will cost you $14.95 plus $15 ($0.015 * 1000) or $29.95. That’s a $19.96 difference! Imaging adding that up throughout the year.
For options they have a base charge of $14.95 plus $1.25 per contract. That’s expensive. If you compare that to TradeKing who offers options at $4.95 plus $0.65 per contract you are going to pay a lot more. For 10 contracts at Seaport Securities that will cost you $14.95 plus $12.50 ($1.25 * 10) totaling $27.45. If you bought 10 contracts at TradeKing it would cost you $4.95 plus $6.50 ($0.65 * 10) totaling $11.45. That’s a difference of $16.00!
As you can see by my examples above, Seaport Securities has a much higher commission schedule than most of its competitors making it a less desirable broker, especially for active traders.
Trading Platform & Tools
When reviewing trading platforms I like to see what each broker offers compared to what they charge for commissions or for the platform. Seaport Securities doesn’t offer a downloadable trading platform and instead just has the basic web-based trading platform that offers only the bare essentials like streaming quotes, stop and conditional orders, portfolio tracking, basic charting capabilities and independent research reports. I found the platform to be less than impressive and it definitely would not meet the needs of an active trader. There is no hotkey abilities, direct market access and the charting is sluggish and basic. It has minimal indicators and customization features so you would need to pay for an alternative charting software if you were trading through Seaport Securities. This is not a broker for day traders and is more suited casual traders who don’t rely heavily on speed and powerful technology.
Overall Seaport Securities is a decent broker for casual traders and investors but there’s no way I can recommend them for active traders. Their commissions are too high and their platform is too slow and are lacking important features like hotkeys and direct market access to make up for their high price. They do not offer a chat service but they do have a professional and pleasant customer service to speak with while setting up my account but it still doesn’t make up for the lack of tools that active traders need and is why I would recommend checking out some of our other reviews for better day trading platforms and brokers.
As always if you have any questions or comments regarding Seaport Securities, please leave us a message below!
Reviews by Warrior Trading