Ustocktrade is a simple investment platform providing an alternative trading system for stocks. Operating as a peer-to-peer stock trading platform, Ustocktrade has eliminated the use of brokers, therefore, allowing users to enjoy low trading costs in the market. The platform operates by simply matching buy and sell orders within its network, therefore, doing away with the need of intermediaries in the form of brokers.
The peer-to-peer trading platform should appeal to new investors looking to trade the financial markets. The trading platform is aimed at college students looking to get a head start when it comes to trading the U.S stock markets.
A trading simulator is on offer for would-be investors that are new into the business of trading in the stock market. The trading simulator makes it possible to practice stock trading with zero risks. Ustocktrade provides virtual cash for practicing various trading strategies using real-time market data at no extra cost.
However, a 10,000 per trade limit may not appeal to institutional or sophisticated investors looking to place big orders in the market. In addition, the trading platform trades are limited to stocks listed in The U.S exchanges, therefore, may not be ideal for investors looking for greater diversification on the global markets.
How Does Ustocktrade Work?
Ustocktrade operates under the T+ 0 policy, whereby security trades take up to three days to settle into an account. The drawback to this model is that it can be extremely difficult to buy and sell multiple stocks or execute multiple orders a day.
Unlike traditional trading platforms, Ustocktrade matches trades internally within the network, thus allowing traders to place trades at no additional cost. By matching trades internally, the trading platform can provide same-day settlement.
Can you day trade Ustocktrade?
The answer is yes, you can day trade in the Ustocktrade platform. However, you must be a paid member, which cost $1 per month. Investors must also have the cash and trade using the “Same-Day Settlement.”
What Investments can I Trade at Ustocktrade?
Ustocktrade has a diverse range of trading instruments that people can use to gain exposure to the capital markets. For starters, the peer-to-peer trading platform makes it possible to invest in almost all equity securities listed in the U.S.
In addition to trading U.S stocks, Ustocktrade also provides access to Exchange Traded Notes, which operate the same way as traditional exchange-traded funds. ETN are simply debt instruments issued by financial institutions that perform depending on the credit rating of the institution issuing them. The platform offers access to eight ETN products in addition to 92 ETFs.
While trading with Ustocktrade, you will not have to worry, a bit as the platform insures trading accounts to a tune of $500,000 made up of $250,000 in cash. Likewise, the platform uses Electronic Transaction clearing as the clearing agent.
What are the Ustocktrade Fees?
When it comes to trading requirements, there is no minimum amount required to start trading with Ustocktrade. However, a $10,000 trading limit is in place on buy and sell orders. The limit is designed to ensure the platform is for retail investors rather than large, sophisticated investors.
Ustocktrade boasts of some of the lowest trading fees as a peer-to-peer trading platform. The membership fee is currently pegged at $1 with trading fees standing at $1 per trade for both buy and sell orders.
The peer-to-peer trading platform does not charge anything when it comes to bank fund transfers. Likewise, customers looking to transfer funds from other brokers will not encounter any charges. The Returned Bank Fund Transfer currently stands at $20.
Where can I Find Stocks to Trade?
The best place to find stocks to buy is products and services around you. Investors like Warren Buffet invests in companies like Coke Cola because he understands and uses them. You can also find great stock by researching investments online. AlphaBetaStock.com has a dedicated section called “Stocks to Watch” that highlights one stock a day that investors should look at.
Ustocktrade – Bottom Line
Ustocktrade is an ideal trading platform for small investors looking to learn the ropes of trading. However, it is also opened to large investors who can function as market makers. Low trading fees, as well as zero minimum balance, are some of the features that make it stand out in the space.
Ruchi has an Accounting and Graduate Degree in Business from the International School and Business and Media. She is exceptionally skilled in financial databases like Bloomberg, ThomsonOne,Datastream, CapitalIQ, and Factiva. Her focus at AlphaBetaStock.com is research breaking stocks and investment stories.