Since the closing of Suretrader, a lot of people are looking for another broker that fits their needs. Watch our watch list video on CMEG, the alternative to SureTrader.
Perhaps you have heard the rumor or the news that SureTrader is closing. It's true.
Well, youu can't use Suretrader anymore, because it's closed. Here is the most important thing you need to know. SureTrader has closed its doors and has transferred customer accounts to a Broker called F1Trade. It's abrupt, but some expected something like this to happen, eventually, because of the contravery surrounding the owner and company drama.
Initially, we couldn't find a website for F1 Trade on the internet using google. Probably not a good sign. But eventually someone on twitter turned up a link to F1Trade. We haven't tried them yet, but typically we like to drop a few bucks into these types of brokers and try them out, and review them. You can find reviews all over our site on brokers we have checked out.
Guy Gentile created the broker SureTrader, as an affiliate of his Swiss America Securities firm. It's most popular among day traders, penny stock traders, and those looking to circumvent the PDT rule.
Mr. Gentile started SureTrader back in 2011 and has worked hard to build a name for the company. We have looked into using SureTrader as a broker, and have found them to be problematic with errors, glitches and poor customer service. But for getting around the PDT, they were one of the few brokers that gave the options. They also have a customized version of DAS TRADER which made them more appealing.
The official reason given by SureTrader for its closing is that it's clearing broker had changed the terms of its relationship without “notice and reason”. From what it sounds like, they no longer want to do business with the company. Why you might ask?
Well, Gentile has gotten into hot water the last few years. Particularly with being fined for running pump and dump pennystock schemes, poor record keeping, and various other violations. Here's a link to the state of New Jersey indicting him (which they eventually won the case)
We find it kinda weird that an owner of a broker is longing and shorting volatile penny stocks on his platform and everyone is supposed to be ok with it. Nothing wrong, morally or ethically there right? Seems sketchy. Anyway, it's not for us to say, we don't write the laws. We just would not do it that way...
From what we have learned online, it looks like they are having trouble finding a bank for SureTrader to do business with, as the bank of Montreal recently dumped them as a customer. Apparently Gentile has been trying, unsuccessfully to open is own bank in Puerto Rico...yeah seriously.
Also, in September this year, Swiss America Securities (and thus SureTrader) had its registration under the Securities Industry Act suspended for five days by the Commission. That meant customers had ZERO access to their money for 5 days, and the customer support was terrible. They pretty much ignored customer inquires for days. Sad.
SureTrader also got fined $120,000 large last year for several breaches in customer due diligence processes and record-keeping. Not cool!
F1TRADE is said to offer similar services to SureTrader, They claim to be fast, and have commissions as low as a dollar. They offer 6:1 margin, CFDs, extended hours trading, and claim to have live customer support. They don't pass the sniff test when doing a little bit of research into the company.
According to a WHOIS lookup search, the website was created in September in 2019! Here at the bullish bears, we don't do business with websites that were recently created as a general rule....
It looks like they are using a DAS interface as well for active trading, which is kind of reassuring...but still too risky for our blood to put any money in an account and try out.
If clients chose to not use F1TRADE, they need to opt out and would be required to withdraw the balance on their accounts by bank wire. If it were us, we would be doing this ASAP, as the whole situation is uncomfortable at this point.
You have an alternative. SureTrader closing is not a big deal. You have CMEG, or trade a cash account with Interactive Brokers or TD Ameritrade and trade options.Each of these brokers is better, has different strengths and is tried tested by yours truly. Commissions are lower, and you don't have to worry about them going belly up, randomly.
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