UstockTrade is a stock broker offering Alternative Trading System (ATS) and same day trade settlement. It promises many ”goodies” for stock traders but the worst fears is low liquidity due to its closed nature network. Meanwhile, you could try these brokers for your trading.
Welcome to the Ustocktrade review. Ustocktrade operates like a dark pool exchange where buying and selling of stocks is done in a peer-to-peer trading environment.
Ustocktrade.com is quite different from a regular brokerage because it implements an Alternative Trading System (ATS) and ”guarantees” same day settlements with fees as low as $1 per trade.
In this Ustocktrade review, I will help you make a decision regarding whether or not Ustocktrade is the best brokerage/exchange for your needs.
In summary, a dark pool like UstockTrade will typically suffer from liquidity/spread issues if the volume of trades going into the market is small.
Unlike a brokerage whose size of liquidity entirely depends on the volume that participants injects into the market, UstockTrade adopts a system where your orders can only be filled by another member of UstockTrade.
In simple terms, liquidity will depend on how good or bad the company is at marketing their service.
If they suck, then liquidity and spreads will be terrible and if you are a newbie to stock trading, my advice is you should avoid putting your balls on the line as far as the concept of UstockTrade is concerned.
Is this a gamble? It depends as there can be some advantages to trading on a platform like UstockTrade.
UstockTrade background and overview
This entity is operated by Tony and Cindy Weeresing who have allegedly spent 2 decades of their lives automating stock exchanges.
They realized that it was quite difficult for regular non-Wallstreet folks to enter the trading arena due to the high costs associated with trading in addition to complicated trading requirements and poor execution.
So Tony and Cindy Weeresing decided to ”level the playing field” by introducing the concept of Alternative Trading System (ATS).
UstockTrade is apparently a sophisticated financial technology which the masses can access at a cost that is affordable to all.
These folks also claim that they wanted to use some of the profits generated from UstockTrade to fund The Cainan Foundation.
They promise traders faster settlements as trades are not routed through middlemen to raise transaction fees in commission.
The concept of UstockTrade is similar to that of Spectre.ai. since they offer brokerless trading experience.
However, this concept is still very new and a lot of traders either don’t know how to use it or are reluctant to try it out.
UstockTrade review – is this platform regulated?
Well, UstockTrade is regulated by the SEC and the people who work for this company appear to have gained a fair amount of experience in this industry.
To run a background check on this company or the people who work for them, go through this page.
So at the very least you should be glad they are not some fly-by-night setup.
But this does not guarantee that you will earn returns from your trading activities on the platform.
How it works
This exchange works through what it calls “T+0.” If you trade securities using traditional brokers, settlement will take 3 days which is referred to as “T+3.”
It is a disadvantage if you are a trader wanting to buy or sell multiple securities on the same day since your proceeds won’t be available in your account until after 3 days have elapsed.
Therefore, UstockTrade’s T+0 guarantees that settlement will be made on the same day where every securities transaction and funds invested plus profits (if any) will be available the same day for new investments.
UstockTrade also provides a trading simulator where investors can practice trading with virtual money using real market data.
UstockTrade review: Important things to know
They provide most equity securities available on the U.S. stock exchanges in addition to 92 ETFs and 8 ETNs.
In terms of safety of investor funds, Ustocktrade provides SIPC coverage which insures your account to the sum of $250,000 in cash and up to $500,000 in total.
There is also a maximum buy and sell limit of $10,000 for each trade.
UstockTrade is not suitable to large scale investors as evidenced by the 10K limit which they have put on their trades.
So if you want to buy or sell large quantities, my suggestion would be to trade stocks the traditional way.
UstockTrade review – what to be aware of
This section of the UstockTrade review is basically touching on what we had already discussed above.
Apart from the few pros of trading with these exchanges i.e same day trade settlement, extremely low fees associated with trading on this platform ($1 per trade and $1 per month) as well as no minimum deposit policy, there isn’t much.
The downsides are quite obvious. If UstockTrade does not market properly to grow their audience, then there’s bound to be liquidity problems.
There is no margin trading and short selling. And the idea of ”super users” and their closed network nature will definitely lead to low liquidity in volatile markets.
UstockTrade seems to be targeting small scale stock traders while at the same time focusing on newbies too. But this platform might not be ideal for all types of stock traders.
While there are many UstockTrade reviews on the internet, I see that people tend to have mixed opinions regarding the services offered by this exchange.
In conclusion, I would try the platform using their trading simulator to see how it works before committing any funds.
If you have experience with this trading platform, please add your input to this UstockTrade review
Thanks for reading the UstockTrade review.