Alyaziah Hayat | March 24, 2022
Table of Contents
Stockpile is a basic online broker with a simple trading app for the buying and selling of fractional stock shares with low fees. The platform, trading tools and financial instruments are very limited compared to other online brokers.
Broker Pros / Cons
- Strict regulation
- Securities Investor Protection Corporation (SIPC)
- Fractional shares
- Minimum $5 deposit
- Gift stocks
- Low stock fees
- No leverage
- Limited trading platforms & tools
- No forex, CFD or crypto trading
- No MetaTrader platform
- No online payment processors
- US traders only
Stockpile is an online brokerage that offers a trading app for buying fractional shares of stock in companies like Apple, Amazon, Google, Facebook, Netflix, Tesla and many more. They aim to make the stock market more accessible for the younger generation through an easy to use platform with a user-friendly interface making the buying and selling of stocks and ETFs a quick an easy process.
Founded in 2010, Stockpile have some of the lowest fees in the online broker industry starting from just $0.99. However, the number of tradable instruments is very limited compared to other trading brokers whilst the market research tools provided are also minimal. The more experienced and savvier investor is likely to find both the financial product range and technologies lacking.
Stockpile is likely to be more attractive to those who just want to test the waters or those who would like to gift stocks through the e-gift or physical gift card options they have that can be used to redeem stocks. An account is not required to gift stocks.
All securities are offered to self-directed investors by Stockpile Investments, Inc., who are a registered broker-dealer and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC) scheme in the United States.
FINRA enables investors and firms to participate in the market with confidence by safeguarding its integrity. It is a non-governmental organisation that regulates member brokerage firms and exchange markets.
The SIPC is an investor protection scheme established in order to protect clients against the loss of cash and securities in case the broker cannot fulfil their financial obligations. The SIPC protection is limited to $500,000 with a $250,000 limit for cash.
Stockpile does not open or maintain accounts for traders located outside of the United States. You must have a social security number and be legally living in the USA to open an investment account with them.
Stockpile have a very simple to use trading app where you can access your account, manage funds, research potential investments, buy and sell stocks, and manage your portfolio. Whilst the trading app is modern and simplistic, it is very limited when it comes to conducting detailed analysis. That being said, Stockpile’s target market is primarily those who are new to trading rather than the more seasoned professional investor.
The Stockpile app has a series of fun and easy to digest mini lessons that can help improve the trading knowledge of beginners. The trading tools are very limited compared to most other online brokers whose platforms offer a vast array of technical and fundamental analysis tools to conduct detailed market research.
Using the Stockpile app, traders can buy fractional shares of 1,000+ stocks and ETFs, for just $0.99 per trade. They have every stock in the S&P 500. You can browse stocks by category, company name, sector, brand, etc. They do not carry penny stocks, bulletin board securities, pink sheet stocks, foreign ordinaries, and stocks trading below $6.00 per share. Unfortunately, this trading broker does not offer forex, CFDs or cryptocurrencies.
Many of the top stocks can be pricey, which makes it difficult for some aspiring traders to get started. For example, Amazon starts at $1,000 a share. With Stockpile, instead of needing to buy an entire share, you can buy fractional shares and invest any amount that you want. You could buy $50 of Amazon and get 0.05 shares. If you were to buy 0.5 shares for $50 and the stock goes up 10%, your shares would then be worth $55. Your stocks will go up and down with the market, trading always carries an element of risk.
Stockpile offer a standard account for trading and investing in stocks. All accounts are cash accounts, which means that all purchases must be paid for with settled funds, they do not provide credit or margin lending to traders.
Aspiring stock traders can start trading with just $5 using Stockpile. It is completely free to sign up for a trading account and there is a low $0.99 fee per trade. Stockpile have no monthly fees or minimum requirements.
Stockpile customer support is available via online chat and email. They are usually online during US office hours. It would be beneficial if they had a direct telephone contact number in addition to this. They do however have a useful frequently asked question (FAQ) section where you can get some advice and answers from the Stockpile team.
Stockpile offer two ways to fund your trading account. You can link your bank account to move cash in and out of your Stockpile account. This is free to do although it can take up to 3 business days for the money to appear. You can also schedule automatic deposits from your bank if you wish. The alternative option is to fund your trading account via debit card which is instant but does incur a small charge. These funding options are limited compared to some other online brokers who offer online payment processors such as PayPal, Skrill, Neteller, etc.
You can quickly and easily open an online trading account with Stockpile using the short application form on the website. You will need to enter some personal details and link your bank account so that you can add funds as and when you want. Once you have opened a trading account, you can commence buying and selling stocks at your leisure. Stockpile protects your sensitive personal information using 256-bit encryption.
|Broker Features||AvaTrade||IG||IC Markets|
|Regulated||ASIC, BVI, CBI, FFAJ, JFSA, FSCA, IIROC, ADGM FRSA||FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF||ASIC, CySEC, FSA, SCB|
|Country||Australia, Ireland, South Africa, Japan, British Virgin Islands||Australia, UK, USA, Switzerland, UAE, Singapore, Japan||Australia, Seychelles, Bahamas, Cyprus|
|Min. Deposit||Min $250 Deposit||Min $100 Deposit||Min $200 Deposit|
|Commission||From $0||From $0||From $0|
|Instruments||Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies, Options, Bonds, CFDs, ETFs||Forex, Commodities, Stocks, Shares, Indices, Cryptocurrencies, Metals, Energies, Options, Bonds, ETFs, CFDs||Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies, Bonds, CFDs|
|Platforms||MetaTrader 4, MetaTrader 5, AvaTradeGO, AvaOptions, AvaSocial, DupliTrade, ZuluTrade, Web, Mobile||MetaTrader 4, IG Platform, IG Progressive Web App, ProRealTime (PRT), L2 Dealer, FIX API, Web, Mobile||MetaTrader 4, MetaTrader 5, cTrader, Web, Mobile|
|Type||Market Maker, STP||STP, ECN, DMA||ECN|
|Funding||Wire Transfer, Credit/Debit Card, Paypal, WebMoney, Neteller, Skrill||Wire Transfer, Credit/Debit Cards, PayPal||Wire Transfer, Credit Card, Debit Card, WebMoney, Neteller, PayPal, Skrill, FasaPay, UnionPay, Qiwi, Bpay, Poli|
|Visit Broker||Visit Broker||Visit Broker||Visit Broker|
Stockpile is a very basic online brokerage with a user-friendly trading app that has limited tools and financial instruments to choose from. They are targeted towards the novice trader, offering fractional shares and educational resources via the app. The fees are low and there is the unique option to buy stocks as gifts for others. However, they are unlikely to have the powerful platforms and tools that are needed by the more experienced trader. They also do not offer forex, CFD or cryptocurrency trading.