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Ustocktrade review

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Ustocktrade is an ambitious stock trading system offering cutting edge technology and unlimited day trades — but it has its restrictions, too.

Ustocktrade is a peer-to-peer stock trading system that eliminates brokers. Instead, trading is between other members on the platform. It’s a one-of-a-kind Alternative Trading System (ATS) specifically for retail traders that offers unlimited day trading at flat $1 commissions and no minimum account size with free one-day money transfers.

It’s a good platform for day traders who can live with the $10,000 per day trading cap. The bad news is that the app suffers from bugs that make it unreliable.

  • Consider Ustocktrade if you want the latest technology, analytics and unlimited day trades.
  • Trading is limited to ETFs, ETNs, and US company-listed stocks held in taxable accounts.

$1

Stock trade fee

$0

Minimum deposit to open

$1 per month

Fee

Who is Ustocktrade best for?

  • New traders who want to learn the basics and day traders who can stay under the $10,000 per day trading cap.
  • Traders who want to realized and unrealized gain reporting and sophisticated real-time analytics.
  • Traders who want to support an active, socially conscious firm that funds education and home building in Sri Lanka.
  • Traders who do not want to trade against large institutional traders.
  • Traders who take profits daily and want them wired on the same day to their outside accounts.
  • Large day traders who use margins and can maintain a $25,000 minimum margin account.

How easy is it to use?

You can become a client in one day using the firm’s simple online application process. All you have to do is complete a questionnaire, upload the requested documents and fund the account using the Ustocktrade app (available on Android and Apple.)

Customer service is provided via email. The web site also provides a FAQ section covering commonly asked answers to questions about its products, services, and features.

The bad news is that there are numerous complaints about the app. People who have used the system report that the app is slow, doesn’t accept orders in illiquid stocks, asks clients to update repetitively, does not verify purchases quickly and has problems executing limit orders. It also does not display charts and makes it hard to see the entire portfolio.

What research does it provide?

Research sources are very limited, but if you like analytics, especially charts, you’ll find them here. You’ll get candlestick charts, reports about realized and unrealized trading profits in taxable portfolios. Its interface also calculates estimated dividends you will receive in real-time, as well as access to third-party news links.

This user-friendly interface also allows clients to research, manage and place trades on a single screen. Unfortunately, the site doesn’t offer the full array of research available on other platforms. For new traders, the company offers Ustocktrain — a free trading simulator that provides virtual cash to simulate trading using actual real-time data.

Pricing and fees

No account minimums and very low commissions will appeal to many day traders, but the list of available instruments to trade is limited compared to other online day trading systems. There is also a $10,000 per-trade limit that should discourage big-shot, active traders. More information on account details and prices and fees are found here:

Intro or bonus offerNone
Minimum Investment$0
Stock trade fee$1
Monthly membership fee$1
Account typesTaxable accounts only (no IRAs)
Asset typesETFs, ETNs and stocks (no mutual funds or options)
Account transfer fee$0

Is Ustocktrade legit?

Ustocktrade is a privately held company, founded in 2014 and headquartered in Newton, Massachusetts. It is a member of FINRA/SIPC and is a registered broker-dealer. The clearing is provided by Electronic Transaction Clearing of Los Angeles.

The firm has a highly visible role in funding home construction and educational projects in Sri Lanka. Company founder Tony Weeresinghe and his wife, Cindy, established the Cainan Foundation as the firm’s private independent 501(c)(3) charitable foundation to oversee these projects.

The foundation’s 2018 Form 990-PF, filed with the IRS, shows it had about only $10,000 in assets. In response to questions from Finder.com, Cindy Weeresinghe said the foundation has identified a location in Sri Lanka to build the country’s first international boarding school.

The foundation is “in the process of finalizing government approval” for the project, but COVID-19 has created delays, accompanied by the change to the Sri Lankan government. “Once we have final approval, the Weeresinghe family along with our pledged donors will begin building the first campus. Once Ustocktrade hits critical mass, the goal is that the profits it generates will be used to sustain all Cainan Foundation schools,” Cindy Weeresinghe said.

Ustocktrade reviews and complaints

There are numerous recent online complaints about Ustocktrade’s app and limited online customer service. As of December 2020, customers reported the app is “infested with bugs,” with one client saying he had to enter an order 25 times to get it accepted. Another user said he could not enter a limit order using a decimal, which allows the trade to happen at a specific target price.

Client reviews have taken a sharp decline since about 2018, when negative reviews about the app started to increase. The firm’s website lists news articles published about the firm that have not been updated since 2017. Its Facebook page about the charity founded by the firm’s founder has not been updated since 2015.

Pros and cons

Here’s a quick rundown of what users say about the company.

Pros

  • Ambitious Alternative Trading System (ATS) design allows retail trades without large institutional trader competition.
  • Flat $1 commissions.
  • Seeks to use company profits to fund a charitable goal.
  • The same-day settlement allows profits to be withdrawn immediately.

Cons

  • A limited selection of tradable instruments
  • Numerous complaints about the trading app
  • Liquidity and execution problems in fast-moving markets.
  • Limited equity and market research sources
  • The company is family run and its board of directors consists of the founder and his wife.
  • $10,000 per trade limit could be difficult for larger traders

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How do I sign up?

Becoming a new client is easy. It’s a five-minute process, all done online in five-steps that asks for necessary information, ID verifications, and then funding the account.

How do I contact Ustocktrade support?

  • Email: support@ustocktrade.com
  • Use the Submit a request button on the top left corner of Ustocktrade help center
  • Tweet or DM: @USTsupport
  • Sign into your Ustocktrade account and submit an in-app help message

Bottom line

While Ustocktrade is an ambitious Alternative Trading System, based on client reviews it has client service and app problems. It offers some enticing features, including realized and unrealized gain reporting and $1 commissions. But it has narrow research options and only allows trading in three instruments, making a limited system that has a shaky client app platform.

Before you invest, review your account options across multiple platforms to find the account best suited to your needs.

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