In this StockCross review, we’ll cover their free trial, personalized approach, pricing, hidden fees, pros and cons, and FINRA fines. In 2019, StockCross was acquired by Siebert.
StockCross is a full-service online broker that strives to offer personalized, one-on-one investment services. Their online platform caters to domestic and international investors who use it to place trades and keep track of their investments. Established in 1971, StockCross Financial Services, Inc. is one of the largest privately owned brokerage firms in the nation. StockCross is headquartered in Beverly Hills but has offices in major cities across the United States.
What Is StockCross? (Introduction)
They offer all the standard financial products like stocks, options, ETFs, Mutual Funds, and fixed-income products. These options can satisfy the needs of savvy investors everywhere who require a firm to help them diversify their investment portfolios. From what I can see, StockCross focuses on providing the resources needed to grow your portfolio over the long run.
Their website is professional and user-friendly – always a bonus, with many resources for retirement planning, tax guides, and educational purposes.
To open an account, you must have at least $1,000 in equity for IRAs and $2,000 for all other accounts. This is far more than other brokerage firms, even the most elite, would charge. As a result, this could limit the new investor starting with limited capital.
Pros & Cons
- Pros
- Variety
- Customer Service
- Personalized Service
- Prices and fees
- Mobile
- The account minimum and inactivity fee
- FINRA Fines
- Cons
- Prices and fees
- Lack of a mobile trading app
- The account minimum and inactivity fee
- FINRA Fines
Personalized Approach
You’ll be impressed when you head over to the tools and platform. For example, the trading platform can be personalized. Think customizable time and sales, charting, watch lists, alerts, your positions, and balances, to name a few.
They even have an advanced platform that has some great features. While it is powerful in its own way, it won’t satisfy active day traders who need hotkeys and direct market access. If that’s you, I highly recommend you check out more powerful platforms like TD Ameritrade’s ThinkorSwim or SpeedTrader.
But all things considered, it’s most certainly adequate for investors.
No fear if I’ve lost you and you don’t know the difference between an investor and a day trader.
$800,000 FINRA Fines
To cut a long story short, when a transaction is complete, firms must deliver the shares to a registered clearing agency for settlement.
The firm must be net flat or long in the relevant security at the end of the “close-out” date. If the shares are not delivered in time, the SEC’s Reg SHO requires the firm to purchase or borrow the securities to cover their failure to deliver.
If the failure to deliver is not closed out, the firm cannot accept additional short sale orders of the security without first borrowing or arranging to borrow the security.
Well, the FINRA came knocking and found that from November 2009 to May 2013, StockCross was not complying. They were not meeting their close-out obligations. This was due to a software flaw. It failed to deliver on 1,826 occasions.
Additionally, StockCross executed at least 4,132 short sales when it had an outstanding close-out obligation for such securities and did not first borrow or arrange to borrow the security.
Moreover, the FINRA found that StockCross did not have a supervisory system. This would include written supervisory procedures designed to achieve compliance with Rule 204 of Regulation SHO.
This is concerning, but it seems to have been resolved.
How Much Does StockCross Cost?
In 2019, StockCross was acquired by Siebert. There is no pricing model available on their website. You can open an account online or call them to open an account.
Free Trial
You don’t rush out to buy a car without driving it first. It might look all sparkly and shiny, but it might be a lemon on the road.
Luckily, StockCross lets you try before you buy—no chance of buying a lemon here.
Now, this is cool: StockCross lets you access advice from their investment specialists, free of charge.
They also provide site tours to potential clients to help them become familiar with the site and the firm’s services. Furthermore, they also offer online tutorials, which are helpful for newbies.
Hidden Fees
Are everywhere! Like most brokerage firms, the company tends to add on multiple fees; no surprise there, just be aware.
They charge you a $50 maintenance fee on your account. What’s more, canceling a payment will set you back $25. Even monthly statement fees cost $2 a piece, to be exact.
Another thing to remember is that if your account goes negative, they sell your shares without notifying you. This leaves me a bit hesitant.
Bottom Line: Is StockCross Worth It?
The range of investment opportunities will satisfy investors looking to diversify their portfolios. StockCross’s incredibly steep commission rates are too difficult to justify. Since so many discount brokerage firms offer similar services, it’s a tough sell.
Despite their excellent customer service and user-friendly platform, you can get a better bang elsewhere. And if StockCross wants to compete with the other brokerages, it should reduce its fees accordingly.
