If you are into day trading, you will know it is one of the most difficult things to learn, especially if you are not using the right tools. It can take several years to become a successful day trader. I have had plenty of experience using many brokers, particularly in the recent past. Like many amateur day traders, I began with Scottrade. Since then, I have taken my run of the gamut.
Recently, an expert recommended me to use SureTrader, so I opened a brokerage account with them. When trading stocks, in particular for smaller accounts varying from $500 to $5000, you could lose or win just on the basis of who your broker is.
What is SureTrader?
SureTrader is a stock broker and dealer based in the Bahamas and is regulated by the Securities and Exchange Commission in the Bahamas. It draws traders who benefit from the ability to bypass the day trader rules enforced by the US SEC. In case you are looking for a better or new stock broker, you would find our review very helpful as it includes some valuable insights.
Bypass US Pattern Day Trader Rule
SureTrader is an excellent option for young day traders who have modest capital to start with. The broker helps you with a major issue which, as you may know, is the restrictive Pattern Day Trader rule. For those who do not know, I will elaborate. According to this rule, if you are a trader with less than $25,000 in your US-based brokerage, the US SEC restricts the number of trades to a maximum of four in a five day period.
However, with SureTrader, you can get around this rule and the logic is simple. As the broker is based in the Bahamas, the US SEC rules are not applicable to it. So, in case you own a small brokerage account and would like to trade as frequently as you want, you would benefit from a broker such as SureTrader because it does not limit how often you may trade. However, keep in mind that the SEC rules are enforced to protect brokers, especially the less-experienced ones.
Easy to Use
SureTrader is also a tool that you can get familiar with quite easily. It allows the users to learn an advanced and sophisticated system. Remember I informed you I started with Scottrade. When I switched to SureTrader, the change was quite a shocker. If you use the tool, you will be able to use advanced charting capabilities which are extremely useful. Although Scottrade provides these advanced capabilities, users are required to pay for them. On the other hand, these capabilities are free in SureTrader’s standard package.
With SureTrader you can short shares. As you venture into the world of day trading, you will soon learn that an important element of the stock trading game is to find shares to short. You may have the right direction, but in case you cannot find a stock broker who has shares to short, you just cannot get in and benefit from the game.
SureTrader is an excellent brokerage option, as it usually has shares for shorting which you cannot find anywhere else. This is particularly true for a lot of pink sheet stocks. As a result, SureTrader is an ideal platform if you would like to get in on swing trades or moves as it has shares available for shorting.
Finance with a Credit Card
Another benefit of using SureTrader is that you may fund your SureTrader account using a credit card. However, you need to tread with caution as it is not advisable to rack up credit card debt just so you could trade on a stock market. That being said, there are many professions in the market who reward their employees using Visa gift cards. As an example, HP offers spiffs to its sales representatives if they sell their products. Therefore, sales representatives would literally have thousands of dollars or even more loaded up on the Visa card only from sales. A lot of people prefer to have the convenient option to pay using a credit card. This is because it will not, unlike most brokers, necessitate a trader’s checking account withdrawal.
Great Commission Rates
In early 2017, SureTrader changed its commission structure and is now offering 0.01 for each share. To put this in perspective, 0.01 for 10,000 shares is now a notable $100. This represents a big increase in trading commission. To be honest, we have not seen such a change in commission structure and it is unprecedented. As it can be clearly seen in the price table below, SureTrader pays the highest commission compared to several brokers. This is particularly relevant when you are trading over 2000 shares.
A majority of brokers trade an average of 5,000 to 10,000 shares and can benefit a lot from this change in structure. However, for individuals who trade 2000 shares or less, the new commission rates might not be a big factor. For example, Interactive Brokers have a similar pricing structure on a per share basis; however, it is fifty percent less. Moreover, Interactive Brokers only need a minimum of $1.00 per trade in case you trade in smaller sizes such as 100 or 150 shares.
SureTrader has a free and simple web-based trading platform for both stocks and options trade. This lets investors trade and track options, futures and equities using any device with a web browser which is very convenient.
Subscription for Pink Sheet Stocks
However, there are some drawbacks to using SureTrader as well. In order to trade pink sheet stocks, you will need to make a subscription payment. And as you may expect this could be a deal breaker for a lot of traders. This is because you do not have the freedom to trade any stock you would like. So, if you are looking to make sizeable gains by trading pink sheet stocks, you will have to shell out an extra subscription fee. And no one likes to do that in the stock trading business.
Customer services offered by SureTrader are one of the most debatable and controversial aspects of this stock broker’s offerings. You can find scathing reviews regarding its customer service the moment you Google or search “SureTrader customer reviews.” Although there are a variety of complaints relating to its customer service, a few common ones include:
- Conflict resolution and live help often takes too long and as a result customers could lose out on their trades
- Customer service representatives are either rude or unhelpful
- Phone lines are often busy and customers have to wait for a long time; at times, there is no one to answer the call. Due to the long waiting period customers often end up losing money.
- Customer service representatives repeatedly claim they are facing “technical problems”.
- As SureTrader is based in the Bahamas, it is likely that you will talk to a customer service rep with a strange or strong accent.
Apart from controversial customer service and related unpopular comments, these kinds of problems may stem from the lack of knowledge and experience of the individuals who are trading. Stock traders are more likely to feel satisfied and content when they are earning money. This makes it hard to weed out valid and genuine complaints from the gripes of non-successful day traders.
The platform’s ease of use is another area that depends, to a large extent, on the ability and knowledge of the trader. Once again, if you expect that money-makers are the happiest, you may not be wrong. Some traders have been enthralled while others have complained about the ease with which they can set up their account on the platform. As a result, some traders have been quick to praise SureTrader’s platform, while others have been appalled by it.
Setting up an Account
In order to set up a new SureTrader account, customers have to scan identification documents and furnish their utility bill. Ideally, the process should only take a few days, but at times it takes much longer.
As is the case with a majority of recommendations, there are always some conditions attached and it depends on your precise circumstances. So, if you are wondering if you should use SureTrader, the answer depends on some factors such as:
- The amount of money you have
- Your frequency of trading
- Your knowledge and insight
If you are certain you would have $25,000 in your account very soon, and can somehow bypass US Pattern Day Trader regulations and laws, we will recommend you use a different broker. SureTrader is ideal for traders who have smaller accounts and would like to trade on a frequent basis.
Moreover, it can depend on whether you could find shares that you can short. There are plenty of brokers who have better charting, better platforms and better rates of commission. But if they do not have shares you can short, SureTrader is certainly a good platform you can rely on.