Capital One Investing
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|Predecessor||NetStock Direct, ShareBuilder, ING Direct Investing|
|Founded||Bellevue, Washington (1996)|
|Headquarters||McLean, Virginia, United States|
Yvette Butler, PresidentJeff Sills, Advice and Planning Chief
|Products||Advice, Stocks, Options, Automatic Investing, PortfolioBuilder|
Capital One Investing (formerly Capital One ShareBuilder) is an online brokerage and investment firm with its headquarters in McLean, Virginia. Capital One Investing is a full-service brokerage offering a range of investment services including advised accounts and fully self-directed digital accounts. Capital One Investing allows investors to easily buy stocks, bonds, options, mutual funds, and exchange-traded funds as partial shares via the ShareBuilder Investment Plan, PortfolioBuilder and Fund Evaluator, a digital tool to help investors pick which funds sold on Capital One’s online platform are best for them. Real-time trading is also available online, on mobile devices, and via telephone. Capital One Investing provides an award-winning toolset, extensive research and customer service and analysis tools. Financial Advisors are available in Capital One locations and on phone through Advisor Connect.
Capital One Investing (formally ShareBuilder Securities Corporation) was founded in 1996 as NetStock Direct. It encouraged recurring, automatic purchases of shares of stock, mutual funds and exchange-traded funds instead of day trading.
In 2005, ShareBuilder began offering 401(k) plans to small businesses. On November 19, 2007, ShareBuilder Corporation was purchased by ING Direct, a subsidiary of ING Group for $220 million. In June 2009, ShareBuilder moved its headquarters from Bellevue, Washington to 83 King Street, in the Pioneer Square district of Seattle, Washington.
In February 2012, Capital One Financial Corporation, headquartered in McLean, VA, completed its acquisition of ING Bank, fsb, and its subsidiaries, including ShareBuilder Corporation. ShareBuilder is no longer affiliated with ING Group. In January 2015, they were renamed to Capital One Investing, taking full effect in June 2015.
Account operations and types
The following are the basic types of accounts available with Capital One Investing:
- Individual Account – An account for one adult
- Joint Account – An account shared by two adults
- Traditional/Rollover IRA – One of the Individual Retirement Account (IRA) options available to prepare for retirement
- Roth or Conversion IRA – One IRA option to help prepare for retirement (must meet eligibility requirements set by the IRS)
- ShareBuilder ESA (Education Savings Account) – Created to help pay for the education of the beneficiary of the account
- Custodial Account – Account created by an adult, for the benefit of a minor
Real-time trading is available to all investors. All transactions occur online and are entirely at the discretion of the account holder, thus it is an execution-only service. The company does not have brokerage sales representatives or advisors. Account holders can use Capital One Investing's online research tools to investigate stocks, similar to other online brokerages such as Scottrade, TD Ameritrade and Fidelity.
For approved investors, Capital One Investing also offers basic option trading strategies such as buying calls or puts and writing covered calls. Long margin investing (i.e. buying on margin) is also offered, but not short margin (i.e. short selling). Real-time quotes are also available for approved investors.
Capital One Investing has financial advisors in Capital One branch locations and available on the phone through Advisor Connect.
In June 2016, Capital One Investing launched Advisor Connect, a hybrid robo advisor. Advisor Connect is staffed by experienced advisers, most of whom have the CFP designation. Clients can call the advisers when they want investment advice from a human.
Clients of Capital One Investing can leverage Capital One Advisors Managed Portfolios through Advisor Connect. With a $25,000 investment, the firm charges a 0.9% annual advisory fee. Capital One Investing does not sell proprietary funds.
- "Capital One Brings Human Advisors to Its Digital Platform". www.thinkadvisor.com. Retrieved 2017-03-03.
- "Capital One to End Commissions in Advised IRAs". www.thinkadvisor.com. Retrieved 2017-03-03.
- "ING Direct buys U.S. online brokerage for $220 mln". MarketWatch. 2007-11-06.
- "ShareBuilder from ING Direct Signs Lease for 130,000 Square Feet in Historic Landmark in Heart of Seattle". Business Wire. 2008-11-26. Retrieved 2014-10-04.
- Landes, Luke (February 17, 2012). "Federal Reserve Approves Capital One's Acquisition of ING Direct". Forbes.com. Retrieved June 10, 2012.
- Suarez, Grete. "Capital One will eliminate commissions on IRAs". www.investmentnews.com. Retrieved 2017-03-03.
- AFC, Mark P. Cussen, CFP®, CMFC, (2016-11-18). "Capital One Nixes Retirement Account Commissions". Investopedia. Retrieved 2017-03-03.
- "Capital One to abandon commissions on retirement accounts". Bank Investment Consultant. Retrieved 2017-03-03.
- "Capital One Merges Advisory Business With Online Investment Platform". Wealth Management. 2015-06-09. Retrieved 2017-03-03.
- "With robo launch, Capital One aims to hit clients' sweet spot". Bank Investment Consultant. Retrieved 2017-03-03.