USAA

USAA (United Services Automobile Association)

Here's a rundown of the basic stats. Afterwards, I'll post my impression.

Types of Brokerage Accounts

USAA Asset Management Account

A USAA Asset Management Account (USAA AMA) allows you to simplify your investing when you have $5,000 or more in your portfolio. The USAA AMA offers a debit card, unlimited check writing, the ability to pay bills online, low-cost trades and low margin rates.1

Cash Account
A Cash Account is the simplest brokerage trading account. In this type of account, transactions are settled electronically, either from your brokerage cash/sweep account or from a predesignated bank account.

Margin Account²
With a Margin Account, you can buy and sell most of the same types of securities as you would in a Cash Account, but you'll have the added advantage of leveraging your investments. We require a $2,000 minimum equity requirement to trade on margin.

Self-Directed IRA Account
With a Self-Directed IRA, you can choose to buy individual securities to hold in your IRA. Any dividends, interest earned or capital gains realized on the securities accumulates on a tax-deferred basis. We also offer Roth and Coverdell Education Savings Accounts. Let us help you select the right IRA product for you.

Option Account³
Options trading lets you speculate on the future of stock prices. An option contract gives you the right to buy or sell securities at predetermined prices within a certain period of time. This type of trading involves a high degree of risk. You must meet certain financial and trading experience criteria to qualify for options trading.

Trading Cost

Electronic Pricing (signed up for USAA Documents Online¹)

Platinum: Stocks 5.95, Options 5.95 + $.75/Contract, Eligibility 25+ Trades/90days or 16+ trades/90 days and $50,000+ in eligible assetts.
GoldStocks: Stocks 11.95, Options 9.95 + $.75/Contract, Eligibility all traders are eligible for the gold rate.

Paper Pricing (not signed up for USAA Documents Online¹)

Platinum: Stocks 7.95, Options 7.95+ $.75/Contract, Eligibility 25+ Trades/90days or 16+ trades/90 days and $50,000+ in eligible assetts.
GoldStocks: Stocks 13.95, Options 11.95 + $.75/Contract, Eligibility all traders are eligible for the gold rate.

Trading Software

None

Here is my impression of USAA as a whole. I started off as a member in 1997 when I joined the military. I'm from San Antonio where USAA has its headquarters, therefore I knew of the company. I knew people who worked there. They loved it and were treated exceptionally well. Back then, being a member or working for USAA was kind of like being a member of an exclusive club.

Since 1997 I've had all my insurance with them and started banking with them exclusively since 2001. They have paid in full 3 automobile claims without any problems or delays. They have also been the ONLY company that hasn't tried to jack up their interest rates for the MasterCard I hold with them.

In late 2008 I opened a ROTH IRA with them and In 2009 I opened a standard Cash Brokerage account.

*** I'd give it a 3 out of 5 stars. I'd give it more stars if they had better charts, faster internet service, and trailing stops.

I should point out that I don't use USAA's brokerage service because they are excellent. Their brokerage setup is rather plain and probably pales in comparison to specialized brokerage services. I use them because I am a loyal customer who has been treated fairly in both good times and bad. I also use them because all my banking is done with them so it's just easier to keep track of the money.

The internet interface is basic and functional. There isn't any trading software and everything is web based. The charts are derived from www.Bigcharts.com and are the same basic charts on Bigchart's website. USAA does have an interactive chart, but I don't use it and it's blocked where I work.

I did have problems getting charged 13.95 instead of 11.95 for trades. I called in and as always, they took care of it and provided a refund. For me, USAA's customer service has always been excellent.

Now the bad... Their website is slow. It's always slow, no matter where I am or what time it is. USAA web pages take about 3-5 seconds to load for every single page. It's almost like having really fast dialup.

That's all I have to say about USAA.

Cheers... JTH