In this Ustocktrade review we will take a look at how is uUtocktrade 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!
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. This is a limiting factor. So, if you’re a user of Ustocktrade…you are incentivized to get more people on the platform if possible!
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? 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.
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’s 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. Check out our stock trade service to watch us do trading live each day in our trade rooms.
Top 5 Pros
- 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
Top 5 Cons
- 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.