In this Ustocktrade review we will take a look at how is ustocktrade for trading and go over how you can save money by using them.
Tony & Cindy Weeresing spent over 20 years automating global stock exchanges. They realized regular folks like you and I faced many barriers if we wanted to enter the trading arena.
Barriers like high costs, complicated trading requirements, lack of affordable resources and poor trade executions kept many out.
Ustocktrade Review: Does Ustocktrade Have Pdt?
- Ustocktrade is a no pdt rule broker. They are an Alternative Trading System (ATS) that uses their own network to match buy and sell orders. Because of this they can keep their fees low, charging only $1/trade and a $1 monthly fee. Not bad to have no PDT rule huh? That's right, you get to trade till your hearts content with this platform. More on that below.
Operating under the motto "Wall Street to Main Street", Tony & Cindy ambitiously set out to create Ustocktrade in order to level the playing field. They provided sophisticated financial technology at a price that was affordable to the general public.
Furthermore, they wanted to use the profits from Ustocktrade to fund The Cainan Foundation to build school for disadvantaged children throughout the world. We see that as incredibly noble and admirable. A company after our own hearts!
1. Peer to Peer Stock Trading: How Does It Work?
Ustocktrade is an Alternative Trading System (ATS) platform that offers peer-to-peer stock trading without the use of an outside broker to facilitate the trade. The benefits are two-fold (learn how to open an investment account).
Firstly, because Ustocktrade uses their own network they are able to eliminate the use of brokers and keep their fees low. They built their network from the ground up and assembled a serious team of professionals with industry experience to do so.
Secondly, you can benefit from faster settlement as you don’t need to route or sell your trade orders via a middleman. Cut out those middlemen and keep more profits for yourself!
Keep in mind peer-to-peer trading platforms aren’t some fly-by-night set up. They are fully regulated by the SEC. They are officially labeled as Alternative Trading Systems and Ustocktrade is fully regulated by the SEC.
Check out a list of the top trading companies. They have serious technology supporting their platform, and I have yet to encounter a glitch that wasn't my fault. Ha!
The Ustocktrade platform is primarily comprised of small investors. This means that you might not be able to find a buyer for your stocks. That is why I would (If I were you) stick the the popular names in any given sector.
We have stock lists all over our site if you are looking for help with that. Doing this will make it more likely that you have a buyer and a seller that are matching up.
Again, in a standard exchange you can always buy and sell stock – even if the prices are unfavorable. There is always a machine that will buy, even if there isn't a human.
This requirement doesn't exist for Alternative Trading Systems which can be a disadvantage. Because you are stuck in a peer to peer network...you need peers who want to trade.
They aren't HFT's or Algo's. They are real people and real investors or traders. However, we all have to respond to the way HFT's and Algos push prices around, so is there really a difference?
Finally, Ustocktrade cannot guarantee liquidity which could result in orders not being executed or a delay in execution. With time, they hope more users will use the platform to help secure liquidity. Need good trading tools or unsure what you need? Check out our stock trading tools page and get the facts.
What Are Ustocktrade Fees for 2020? Pricing Review
- One of the most attractive features we note in this Ustocktrade review, is their pricing. Now I know what you are thinking. TD, Fidelity and others have free commission trades. True. But they aren't a niche like Ustocktrade. They only charge $1 per trade and a $1 monthly membership fee to trade in their community and there are no PDT rules for cash accounts.
The mobile app was great to use as was the desktop app. I prefer trading with the mobile app because it felt a little more fluid. In general I will choose an app over a browser because of what can go wrong with freezing and lag on a browser.
Ustocktrade allows you to invest in most equity securities listed on U.S. stock exchanges. They also allow you to invest in 92 exchange traded funds and notes. Plenty of popular symbols are available. $ROKU $SPY $TVIX $AMD $AAPL were all on there. Plenty of mid caps too. Like I said, I stick to the big names on Ustocktrade because that is where the liquidity is.
Make sure to check out our best brokerage firms page to learn more about other top companies.
1. Ustocktrade Trading Simulator
Most importantly, Ustocktrade allows you to practice trading with zero risk. Their trading simulator is free to use, and it provides you with virtual cash to practice investing using real-time market data. It is so important that you practice first before stepping foot in the ring.
This will help you prepare for real-world investing activity without risking any of your own money.
2. Top 5 Pros: Ustocktrade Review
- PRICE - At $1/trade and $1/month subscription fee and no account minimums it's one of the lowest priced platforms out there
- VIRTUAL TRADING SIMULATOR - you can build your training skills without risking your hard earned money
- FAST SETTLEMENT TIMES - Your cash is available to trade in the same day due to a T+0 settlement time frame
- YOU'RE SUPPORTING A CHARITY - No explanation needed here!
- ZERO BROKERS - help to keep fees low and no PDT for cash accounts
3. Top 5 Cons: Ustocktrade Review
- TRADING LIMITED - Only stocks, ETFs and ETNs can be traded. You can't trade options and mutual funds - No Crypto yet. Go to Robinhood if you want crypto.
- SHORT SELLING & MARGIN TRADING UNAVAILABLE
- LIMITED SUPPORT - no live, in-person support available, only e-mail
- LIQUIDITY ISSUES - due to the closed network structure of the platform, can be problematic especially in volatile markets.
- CAPPED ORDERS - Trades over $10,000 not permitted so it's not suited for large scale investors.
Can You Day Trade on Ustocktrade? Same Day Settlement Review
- Can you day trade on Ustocktrade? The answer is yes. Just make sure that you pay your $1 monthly membership. There are no trade size or account minimums. In 2016, Ustocktrade revolutionized stock trading by being the first US broker to offer Same-Day Trade Settlement (T+0). This means that you are paid immediately and your cash is available to be reinvested in another stock right away. This is great for an active trader or investor who wants to keep things moving.
Is Ustocktrade good? YES! Why? Well, because generally it can take up to two days (T+2) for your trades to settle by the time brokers negotiate and money changes hands.
This can be very frustrating and limiting to the aspiring day trader because your money is not available for two days. They also offer 24 hour fund transfers in and out. No waiting!
1. Bottom Line
Liquidity risk is the biggest concern when the markets are volatile. In an ATS it's possible no one takes the other side of your trade leaving you bag holding. Coupled with a $10,000 trade limit, large investors might find Ustocktrade limiting.
All things considered, low fees, no account minimums and same day trade settlements means new and small investors might find this investment platform useful.
Furthermore, Bullish Bears can relate to Ustocktrades mission as we strive to break the barriers to entry. We make making trading simple and easy to understand!
We think Ustocktrade has a great platform that pairs well with our community. It serves a very specific niche and is growing quickly, even despite many of the large brokers having to drop their fees to compete with them.
People are our passion, why don't you check us out if you want to see what a good trading community feels like! Thanks for reading our Ustocktrade Review and hopefully we answered your question on if Ustocktrade is good.
We think they are here to stay and will grow to become a major player in the future. Give them a try and see if they are right for you. They are legit.