Online brokerage services have existed for over 20 years. Trading investments today has never been cheaper. So while the race towards cheap trades (in some cases free) is happening, other functionality is becoming more important when selecting a stock broker.
For this review, I compare E*TRADE and Ustocktrade. Which one is better depends on your needs? So let's examine the major features first.
We've determined with online brokerages the most critical feature customers care about is the
cost per trade. The second most important feature is the minimum deposit, and the last is if the broker
offers mutual funds. Let's look at how E*TRADE and Ustocktrade
stack up against each other on these points.
To start, we will consider the minimum investment required for both applications. In other words, how much does one need to invest to use the service? Out of the two, Ustocktrade minimum investment of $0 is smaller than the deposit of required by E*TRADE.
Next I'll consider cost per trade for both brokers.
Out of the two, Ustocktrade is cheaper per trade at $1.00 than E*TRADE at $6.95/trade.
When it comes to having support for mutual funds, there is a clear division between E*TRADE and Ustocktrade. E*TRADE does have support for mutual funds, while Ustocktrade does not.
|Review||E*TRADE Review||Ustocktrade Review|
Overall rating as by Investor Junkie.Rating
|Commissions & Fees|
|Ease of Use|
|Tools & Resources|
|Amount of Deals|
|Stock Trades||$6.95/trade ($4.95/trade for 30+ trades/quarter)||$1/trade + $1/monthly|
|Options Trades||$6.95/trade + $0.75/contract ($4.95 + $0.50/contract for 30+ trades/quarter)||N/A|
|Investment Types||Stocks, Penny Stocks, ETFs, Mutual Funds, Bonds, FOREX, Futures||Stocks, ETFs|
|Access||Website, iOS App, Apple Watch, Android App||Website, iOS App, Android App|
|Broker Assisted Trade|
|No Fee ETFs|
|Sign Up||Sign Up|
E*TRADE, the grandaddy of online discount brokers, is still a good choice for active investors. Its platforms are easy to use, customer service is responsive, and trades execute quickly. However, there are now many less expensive rivals on the market.
Ustocktrade is an interesting concept, creating a truly community-based investment platform. It may be ideal for new and small investors, as well as early adopters, since the fees are very low and there are no account minimums. However, the service will probably be of very limited use to larger, more sophisticated investors.