Hey everyone! As many of you know, I got tired of the dumb PDT rule and switched to SureTrader. SureTrader is a online discount broker that is located in the bahamas and is regulated by the Securities Commission of the Bahamas. I get a lot of questions about if someone from the US can open an account with them. The answer is yes, yes they can. I believe SureTrader is not allowed to advertise in the US because of the SEC. I could be completely wrong but that is why you do not hear about them in the US. I just want you guys to know that I am NOT an affiliate of SureTrader and this review is based on my first week experience in this brokerage.
Pros of SureTrader
What the biggest pro of SureTrader is that you don't need 25k to day trade. SureTrader allows you to open an account with margin in a little as $500. Since they are located in the Bahamas, you do not have to worry about the PDT rule.
Second pro of SureTrader is the leverage you get. 6 to 1 leverage is pretty big. For example, if you put in $1,000 you can get $6,000 buying power and so on. I highly recommend you do your research on margin before you start using it. The 6 to 1 leverage is for intraday only. If you want to hold overnight position, you only get 2 to 1 leverage. Please do not use leverage if you do not know what you are doing. That is a sure way of blowing up your account and paying more on top of that.
Third pro of SureTrader is the commission. A lot of people don't think they have great commission rates because $4.95 for 1000 shares and then it's 0.00495 per share after. But on the bright side, if you are a member of Investors Underground or have bought the InvestorsLive DVD then you get some special perks. Such as $4.95 for 10,000 shares, 20 free trades, and DAS trader pro with level 2 free for the first month.
Cons of SureTrader
There are not many Cons for me but other people may have a problem with this. First of all, SureTrader is not a great broker for penny stocks period. They will kill you with all the commission fees.
SureTrader Platform
The only platform I recommend in SureTrader is the SureTrader Pro, which is DAS Trader Pro. The bad part about this is that it costs anywhere from $49 to $170 depending on what you need on your platform. For me personally, I do not trade OTC or Pinksheet stocks or do not use Level 2. So for me it only costs me $49 a month. I have not used the web based platform and I do not plan to. I heard it is horrible and you will just end up losing a lot more money.
Best Features
- No Pattern Day Trading (PDT) rule.
- Open an account for $500.
- 6-1 intra-day and 2-1 overnight leverage.
For me, I think this is the best broker out there. Since I only trade Nasdaq and not penny stocks this broker is perfect for the small guys out there like me. The number 1 reason I switched to this broker is because of the PDT rule. I think I will be with this broker for a while unless they screw me somehow, but I hope that does not happen. That being said, who do I recommend for this broker? People who are wanting to ditch the PDT rule and trade as frequently as they want. Who do I recommend stay away from this broker? People who are always trading OTC markets, because commission fees with this broker will just take all the profits away.
Thanks for reading this review guys, and I hope I helped a lot of you guys out. If you have any more questions, just shoot me an email or tweet me. I will be happy to answer!
Hi Shyam, have you been able to successfully get your money back out of your account? I ask because I heard many people complaining that they can't get their money back!
ReplyDeleteI've been researching suretrader, are you still with them and if so, would you still recommend?
ReplyDeleteHey Jerry, I wouldn't recommend them if you are a new trader and only trade 100-500 shares per trade. Their commission structure is not that great. It goes by per ticket and not per share. Get's really expensive if you over trade. Depends on your trading style really.
DeleteAre you still with Suretrader? Can you go into a little more depth about the commissions? And also, was the setting up your account process easy? I see for a US resident we have to file three forms to the IRS.
ReplyDelete