Ustocktrade Review 2020

Ustocktrade Review
Ustocktrade Review
  • Reliability
  • Scope of services
  • Costs
  • Support
4

Review Summary

Ustocktrade is a great brokerage house for beginners with funds below $10,000. Low trading commissions and same-day settlements are beneficial as long with some other things mentioned in this review.

Are you looking to start trading online or switch to a different platform? Ustocktrade is a peer-to-peer stock trading tool featuring zero account minimums, unlimited day trades, free one-day transfers, and more. We’ve done a foolproof Ustocktrade review below, read through before you day trade and let us know what you think in the comments section.

What Is Ustocktrade?

Ustocktrade is an online alternative trading system (ATS) offering peer-to-peer trades. The trading tool is regulated by the U.S. Securities and Exchange Commission (SEC), and unlike conventional platforms, technically, it isn’t a broker. Instead, Ustocktrade connects users (buyers and sellers) within its network of retail investors.

Registered members have a chance to trade three types of assets: stocks, exchange-traded-notes (ETNs), and exchange-traded-funds (ETFs).

This platform works pretty much like electronic communications networks (ECNs) such as Archipelago (ARCA) and Island (ISLD). Both platforms were developed to promote P2P, thus avoiding market specialists and makers. In terms of operation, Ustocktrade seamlessly uses cash instead of margin accounts.

The tool does away with clearinghouses and brokers paving the way for P2P transactions, resulting in same-day trade settlements. This means users can have access to cash proceeds on the same day compared to two to three days taken by most trading tools.

With Ustocktrade, traders can bypass the Pattern Daytrading Rule (PDT); a trader, therefore, needs at least $25,000 to execute three-round trades within five straight trading days. However, cash trades are not subject to the PDT regulation.

Ustocktrade small account holders can also transact within limits each day using their cash accounts. The only major downside with not having margin trading is you won’t be able to short-sell.

Ustocktrade’s Cainan Foundation

Tony Weeresinghe, an IT entrepreneur, is the brainchild behind Ustocktrade, and keen on using his businesses to impact lives. According to sources, Ustocktrade was established with the aim of funding Cainan Foundation, a social impact-themed organization helping impoverished members of the society through building full-equipped schools for them. Weeresinghe is also credited for his enormous contribution to several Wall Street companies.

Commission And Fees

During our review, we found the trading platform’s fees model to be pretty straightforward. Members are required to remit a $1 monthly membership fee and an additional $1 for each trade. Sells attract a cost of $1. Considering market makers and ECNs do not exist, there are no extra fees. Both in and out wire transfers attract a $6-fee per transaction.

No minimum balance is required to operate a Ustocktrade account, but a maximum transfer limit of $10,000 per day applies.

Being a cash-only funded account, you are not allowed to transfer stocks you may already own. The downside of that is that you may incur liquidation losses if you need money to fund your account.

Platforms And Tools

Demo trading platform: First-time traders can horn their skills by engaging in live trades using the tool’s virtual trading account. The demo simulator provides users with virtual cash to kick the tires.

The demo account is free to anyone who signs up on its network.

The Fills are more practical since there are no middlemen. Also, Ustocktrade signups come with some excellent free quotes.

Platform compatibility: Users can access the trading system via several gadgets, including desktops, laptops, and smartphones (both Android and iOS). Those who prefer engaging in multiple trades on several windows can work better with desktops and laptops, all of which are supported. Mobile devices offer greater portability, especially when away from the work station.

Order Panel

Ustocktrade’s order panel comes with a user-friendly outlook and real-time quotes, limit orders, and an active market.

Margin trading: There is no short-selling on Ustocktrade since it doesn’t allow for margin/leveraged trading. But many would counter that with the fact that the tool provides for same-day settlements, allowing you to plough back proceeds/capital immediately, as opposed to waiting for days.

Portfolio overviews:Essentially, there are three types of portfolio overviews with table columns that can be arranged, including quantity, $/% price change, last price, cost and price paid.

Daily Performance Charts come in handy when evaluating progress and regular trade outcomes. The Unrealized Stock Portfolio records your overall portfolio market value. The Realized Stock Portfolio offers an account of profits or losses for each year to date. For any particular stock, you can easily click on its symbol to obtain more information about a transaction from the start of the year to date.

Wash sales (deferred-losses) and gains (both long and short term) for the year to date can be viewed from the Taxable Portfolio section.

Charts

While the platform currently features candlesticks, which were added in 2018, they’ve yet to provide additional technical indicators.

Here, charts are primarily used to compare price actions against historical data.

Ustocktrade regularly upgrades its systems, and users can expect advanced features as the platform grows.

Resources: Nothing fancy here. Ustocktrade offers a basic site for order execution and portfolio management. Trading company notifications will pop-up on Corporate Actions section under the order window during fundamental stock news.

Executions and routing:As earlier mentioned in this Ustocktrade review, there are no brokers, ECNs, market makers or specialists as you would expect to find in traditional exchanges. The platform’s network provides asks and bids. There may be “Supertraders” who provide increased liquidity, although they’re not obligated to do so.

As with several other exchanges, Ustocktrade has been found to offer higher liquidity for the large-gap and widely traded stocks, while less popular stocks have recorded reduced liquidities.

When you day trade on Ustocktrade, expect zero discounts on share pricing as all quote prices largely correspond with the National Best Bid Offer (NBBO).

Customer service: The primary mode of customer support on the stock trading tool is email. However, it would be great to see the introduction of other more effective ways of communication such as live chat and phone.

Who Is Ustocktrade.com Meant For?

As the Ustocktrade review shows, Ustocktrade is available for both beginner and advanced traders, but Self-directed investors and traders operating accounts with $10,000 or less would find it more suitable. “Self-directed” should be underscored here since research materials are wobbly at best. Users are generally expected to conduct their in-depth research to aid their trading decisions.

Intra-day traders will be happy to transact using the stock trading platform’s same-day settlements and reduced commissions.

To give you a bird’s eye-view of Ustocktrade, here are some key pros and cons that we thought would be important to bring to your attention.

Pros

  • Same-day trade settlement compared to two-three days taken by conventional exchanges
  • Cheap wire transfer charges of between $1 and $6
  • High growth network boosting liquidity

Cons

  • Traders may need to seek offsite research materials
  • Doesn’t allow for short-selling
  • Limited instruments of trade (futures and options trading not provided)
Updated: March 09, 2020
Scroll to Top