When I was asked to do some research for this Centerpoint Securities review, I immediately remembered that Centerpoint is known for being one of the best US brokers for locating shortable stocks. Before we get to that feature, let's go for a little introduction of Centerpoint Securities.
Is CenterPoint Securities the Best Shorting Broker? (Review Breakdown)
- CenterPoint Securities is one of the best shorting brokers. Their easy to borrow short list is very popular with active traders and institutional investors. “Serious” traders looking for direct access platforms should consider Centerpoint Securities. At least for their locates, rates, routes and customer service. CenterPoint Securities is part of Precision Securities, a member of both FINRA (Financial Industry Regulatory Authority) and SIPC (Securities Investor Protection Corporation).
The business started in 2000 and is now a brokerage firm for professional traders. Or as CenterPoint puts it: It is for active, sophisticated investors and those striving to be full-time traders. Frankly, this broker is best for traders with larger money and time resources (learn how to open an investment account).
1. Customer Service
Naturally, professionals traders expect professional customer service. By all accounts, this is what they get with CenterPoint Securities. Calling your broker and talking to an earthling (of the human kind) is not as easy as it was before automation. When having your money on the line, calling a broker that puts you on hold and makes you wait can be a real stress test.
You know the feeling, those automated answering system sounds like this when you're in a rush to talk to somebody:
"Thank you for waiting for us at your expense. Your call is surely important... to you. I’m sorry (well, not really, I’m only a voice in a machine), but all of our operators are busy NOT answering you at the moment. Please stay on the line while we play boring music. Your call will hopefully be answered before you lose your money!".
Rather than an automated system CenterPoint is likely to have a live "human" agent answer you within a few rings. A rare event nowadays. Make sure to read the other Centerpoint
Securities review articles on Google. You can never do too much research before you jump into any new service. The best way is always to try it yourself.
2. PDT Rules: CenterPoint Securities Review
Since CenterPoint is for professional, institutional, sophisticated investors and more experienced traders, meeting the Pattern Day Trader requirements is not a concern of their clients.
The minimum required to open an account is $30,000. You'll need deep pockets to get in the door, but it's worth the price of admission if you are going to appreciate the value.
Like I said, CenterPoint's reputation to locate stocks to short including hard-to-borrow stocks is what attracts many active day traders to their service. It may not the brokerage house to go to for your trading education but it is certainly one of the best for executions (of your trades that is).
This is one of the main attractions of Centerpoint, and why you see hard core traders flocking to the service once they decide to get serious about day trading and short selling in particular. Check out a list of the top trading companies. Also, here's a list of the top free trading brokers brokers.
3. Executions and Routes
Talking about executions, CenterPoint Securities offers several clearing choices including Wedbush Securities, ETC Clearing, Vision Financial Markets, and Hilltop Securities. In fact, CenterPoint clients have access to over 30 venues for direct routing. That is a pretty strong network.
Some of the available market makers and ECN’s include CPSMRT, TAILOR1, CNSDQ, and ARCASMRT. Keep in mind that adding and removing liquidity comes with fees and rebates.
Check out other Centerpoint Securities review articles on their fees. Most brokers are always changing their fees and it's hard to keep up with.
One day they're the most competitive, another day they are not. It all depends on the market and what other brokers are offering. Supply and demand in action...
In addition to focusing on professional investors, CenterPoint Securities caters to traders who frequently short stocks. They have a reputation for having one of the best short lists available.
For most active traders, the availability of hard-to-borrow (HTB) and easy-to-borrow (ETB) stocks is one of the biggest appeals of CenterPoint.
What Are CenterPoint Securities Fees and Commissions in 2020? (Pricing Review)
- CenterPoint has 3 pricing schedules. One package of the three is best for institutional clients. Let’s take a look at the other two. The standard commissions plan, priced by the volume of shares, and the per-ticket plan, at a fixed rate per trade. The standard plan fees starts at $0.004 per share and goes as low as $0.002 per share, depending on monthly volume. To get a reduced price per share your monthly volume has to exceed 300,000 shares. That's an average of 15,000 shares per trading day in the course of the month. This type of trading activity might be right up your alley.
1. Pay per Ticket
The pay per-ticket plan starts at $5.95 and goes as low as to $3.95 per trade with volume. If you are trading a lot of shares at a low price, the per-ticket plan would be more beneficial to you. If you're a big time trader you might not care about the fees. Because of the executions and technology you may be not worried about the fees.
However, your trading cost doesn't stop there. Add to this the routing fees, regulatory fees, platform fees, the monthly charges for market data packages and the usual miscellaneous fees for wire transfers, broker-assisted trades, and last but not least the HTB (hard to borrow) fees.
Yes, the cost of trading with CenterPoint Securities is higher than most online brokerage discount firms. However, for higher net worth traders, those that are active on a daily basis, such fees are normal and are the cost of doing business.
Make sure to read other Centerpoint Securities review posts their costs and fees. Check out a list of the top brokerage firms.
2. Trading Platforms & Software Packages
CenterPoint Securities has multiple platforms to choose from with different price levels.
$100 per month - The least expensive platform is the “CenterPoint Trader”. Not the most original name but don’t let that fool you. It is based on the powerful Sterling Trader platform.
It has the sophisticated trading tools most day traders need to get the job done. Sterling is also available for other brokers. Very popular here in the US and abroad among serious traders.
Real-time data, charting, streaming news and analytics, advanced charting, programmable keys and smart destination preferences for order entry… you got it. And it does have both desktop and mobile capabilities.
$120 per month - The DAS Trader Pro trading platform from DAS Inc. provides professional level access and data for many exchanges like Nasdaq, NYSE/ARCA, Direct Edge, OTC markets, and BATS.
Add-ons such as DAS WEB and DAS APP allow you to trade from a web browser or from your mobile. DAS is a household name in the day trading community. And for good reason.
3. Sterling Trader Pro
Clients will gain access to every NYSE floor broker and routing tactics for exchanges, ALGO, dark pools, liquidity providers, and too many features to list here.
$250 per month - The Sterling Trader Pro platform gives traders complete control. Sterling Trading is one of the most widely used trading platforms for professionals in the industry. It allows trading of equities, options, and futures.
Considered by many as the best online trading platform on the market, especially for institutions. Equity trading is available to major US exchanges and worldwide markets such as Canada, Brazil, Europe, Hong Kong, and Shanghai. Learn more here: Sterling Trader PRO.
4. The Long and Short of It
Centerpoint Securities provides a free demo trial. If you have the funds to open a margin account with them, first try out one of the platforms.
Experienced traders who want a broker that specializes in their needs will be well served by CenterPoint Securities. You're getting good technology, excellent short borrows, and access to a large network. All good stuff.
If you are new to the trading world or you have not established a statistical edge that will make you money over time, the best place to start is here.
Because the best broker and trading platforms are not what makes you a professional trader. If you want to become a pro, it is just like any other career. You must first get a proper education.
5. CenterPoint Securities Final Thoughts
Bullish Bears has the best value you’ll find anywhere on the web. Over $3000 worth of courses awaits you. Before I discovered Bullish Bears, I’ve spent thousands of dollars on trading education.
Most were limited to one strategy that didn’t suit me. I finally realized what Jack Schwager meant in his book The New Market Wizards when he said “There are a million ways to make money in the markets. The irony is that they are all very difficult to find.”
The Bullish Bears team recently added stock alerts too, via Twitter. This gives their busy team the ability to update the community on trades they are taking, no matter where they are and no matter what is happening. You'll learn a lot by following their analysis in their trade rooms along with the trade alerts.
Difficult to find because in order to settle on what works best for us, we first need to understand how the market works. Learn how charts work. See how patterns work. How a lot of things work. It takes more time than many leads you to believe. But, if you are ready to learn, and earn.
Ready to discover your style of trading and the strategy that gives YOU an edge, join our trading service community and we'll help you reach your trading education goals.