Ustocktrade is an alternative trading system (ATS) that offers peer-to-peer stock trading on a small selection of U.S. stocks with low fees. The platforms, tools and instruments will be very limited for most retail traders.
Ustocktrade Review, Pros & Cons
- Strict regulation
- Unique Alternative Trading System (ATS)
- Securities Investor Protection Corporation (SIPC)
- No minimum deposit
- Same-day trade settlement
- Charitable work
- Restricted leverage
- No forex, CFD or crypto trading
- Limited analysis tools
- $10,000 trade cap
- No online payment processors
- Telephone support only
- US & Sri Lanka only
In this detailed Ustocktrade review, our online broker research team have covered some of the most important aspects for you to consider when choosing the best broker for your online trading needs.
Ustocktrade is a US based Alternative Trading System (ATS) that offers peer-to-peer stock trading without the use of an outside broker to facilitate the trade. Instead, they match buyers and sellers from within their own network. This helps to keep fees low with a monthly charge of $1 and trades from $1.
The Ustocktrade platform launched in 2016 and is limited to U.S. exchanges. They are primarily focused towards new traders and student who are looking for a simple way of investing online.
Ustocktrade offer unlimited day trades with no account minimums and one day account incoming fund transfers. They also offer same-day trade settlement. This means that cash from every sell trade is not restrained by the typical 2-day settlement period and is thus available immediately.
Ustocktrade was founded purposefully to fund The Cainan Foundation, a 501(c)(3) non-profit organisation that is dedicated to educating some of the world’s most disadvantaged children. The Cainan Foundation is funded primarily through profits generated by Ustocktrade.
Securities products and services are offered to self-directed investors through Ustocktrade Securities, Inc who are a member of Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC) scheme in the United States. Ustocktrade is registered with the U.S Securities and Exchange Commission (SEC).
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 a company cannot fulfil their financial obligations. The SIPC protection is limited to $500,000 with a $250,000 limit for cash.
Ustocktrade uses stock exchange-level security when handling your information. Your sensitive information is fully encrypted, securely stored, and not sold or distributed to third parties.
Ustocktrade is currently only available to resident of the United States and Sri Lanka. Some Ustocktrade broker features and products mentioned within this Ustocktrade review may not be available to traders from specific countries due to legal restrictions.
The Ustocktrade platform offers an intuitive interface which is very user friendly allowing you to conduct market research, place and manage orders, all from one single screen. The platform is available to download for free on Android and iOS compatible devices from the relevant app stores.
- Mobile app for trading whilst on the move
- Helpful tool tip explains each feature and function if you hover over it
- Quickly place buy and sell orders or exit a position
- Set alert notifications
- Review account performance and statistics
- Dividends calculator
- Easily research company’s information from trusted third-party sources
- Android and iOS devices
They also offer a free trading simulator called Ustocktrain that gives you virtual cash to practice investing using real-time market data to prepare for the real stock market.
Ustocktrade Trading Tools & Education
Ustocktrade does not have all the bells and whistles that many other online brokers do have. Instead, they offer simple investing with low fees on platforms accessible to any level of trader.
Ustocktrade currently only offer stock trading limited to U.S. exchanges with a charge of $1/trade and $1/monthly. This is very restricted compared to other online brokers who offer forex, cryptocurrency, CFDs, etc. However, due to the nature of an ATS and peer-to-peer exchange, this is expected. Orders are capped at $10,000 per trade.
Ustocktrade Accounts & Fees
There is one account type and no minimum balance required to open a Ustocktrade account. As broker fees can vary and change, there may be additional fees that are not listed in this Ustocktrade review. It is imperative to ensure that you check and understand all of the latest information on the official Ustocktrade website before opening a brokerage account.
Ustocktrade only offer email support and it can take some time to get a response. Despite that, the customer service team are polite and helpful. It would be more advantageous to most if they could offer telephone and online chat support. There is a frequently asked questions (FAQs) section that provides instant answers to some general questions related to products, services and features offered by Ustocktrade.
Ustocktrade Deposit & Withdrawal
Ustocktrade users will need to link their Ustocktrade accounts to their bank accounts in order to make deposits and withdrawals. Bank fund transfer fees are zero whilst any returned bank fund transfers via ACH are charged at $20. The funding options are limited, it would be beneficial to some users if they could add some online payment processors for funding such as PayPal, Skrill or Neteller.
Ustocktrade Account Opening
Opening a Ustocktrade is a completely online process and only takes a few minutes. You just need to fill out some personal information and upload your documents for verification. Once your account has been verified you can fund it via the Ustocktrade app.
To register you must have a valid US government issued social security number or tax identification number and a US address. Alternatively, you can open an account if you are a resident in Sri Lanka. You will be given the option on the account opening form.
Ustocktrade is a basic yet innovative and unique trading platform that connects traders. It offers a modest selection of U.S. stocks with low fees. In comparison to other online brokers, they have a very limited amount of trading instruments and are also lacking in powerful platforms and tools for conducting in-depth market analysis. There is no forex, CFD or cyptocurrency trading. Their charitable work is highly commendable.
All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Consider the investment objectives, risks, charges, and expenses of a fund before investing.