My SogoTrade Online Stockbroker Account Review
SogoTrade is an online discount brokerage services that offers low cost options and stocks trades for investors or traders. To trade stock as well as ETF, it only cost $3.00 per trade with unlimited shares. To trade option, it will cost $5.00 per trade plus $0.65 per contract with unlimited shares. They are offering three electronic trading platforms for their clients: SogoTrade (web based), SogoElite (software platform), and Laser. As one of Top discount brokers, SogoTrade is continuously updating their trading technology and retaining competitive commission rates. There is no mobile application support currently. Note: SogoTrade was known as SogoInvest before 2008.
SogoTrade was founded and created as part of Genesis Securities based in the New York City, NY area. It currently uses Genesis Securities as its clearing firm to hold the client asset. For protection, Genesis Securities is a member of SIPC & FINRA.SIPC protects against the insolvency of a brokerage firm, but does not protect against market loss. It will cover the securities of customers of its members up to $500,000 of which $250,000 can be cash and supplemental coverage by Genesis Securities insurance using London Underwriter up to $5 million ($1 million cash) per SogoTrade account.
The following is the standard pricing or commission fee of SogoTrade brokerage account:
- Products: Stocks, Options
- Market Orders: $3.00 per trade
- Limit Orders: $3.00 per trade
- Broker-Assisted Orders: $27.00 per trade
- Options: $5.00 + $0.65/contract
- Mutual Funds: Not Available
- Minimum to Open: $500
- Account Maintenance Fee: $0.00
- Account inactivity fee: $0.00
- Abandoned Account fee: $10 / month
- Account Closing Fee: $0.00
- Some Other Fees: Wire Fees: $25.00 per transfer.
- Outgoing ACAT: $75.00.
- Maximum Margin Rate: Based on proprietary base rate
Opening an account
Opening account is straight forward; you just need to fill the online application through SogoTrade website. You can open various account types such as individual, joint, and Business. There is no support for Individual Retirement Accounts (IRA) either traditional or Roth. For individual account, they may require you to submit driver license identification copy either by fax or regular mail. The online application only takes about 10-15 minute to complete. Once you are done, you’ll need to wait for their approval. Then, you can setup how you want to fund your account.
As many typical online brokerages account, there are 4 different ways to fund your SogoTrade account:
- Wire Transfer – usually can be done same business day
- Transfer an account from other brokers .This will take more than 10 business days
- Mailing a check will take 5 business days
- Electronic Transfer (ACH transfer) will take up to 2 business days.
For International or Foreign investor or non US resident, SogoTrade only supports Chinese applicants (mainland China, Taiwan and Hong Kong citizens) at this time. Chinese applicants can apply through SogoTrade International website. It also offers Chinese Mandarin language services for account opening. You will need to submit W-8Ben and ID or Passport along with your application through regular mail or fax. The minimum balance to open an account is $500. Other foreign residents are not supported currently.
What I like about SogoTrade is its flat rate commission
structure. Also, it is an online discount broker with straight forward
For Stock trades, all market and limit order stock trades are $3 per trade for up to 100,000 shares. This means to buy stock online it will only cost $3.00 per trade. The trade doesn’t have any restriction in term of shares price except anything lower than $1.00 (i.e. low penny stocks). For stocks priced under $1.00, the online commission is $3 plus .5% of the principal value. Broker assisted trades are $27. For extended hours trading, there is additional fee of $0.005 per share. For example, if trader buys 100 shares of $5.00 stock, it will cost $3.00 commission and if trader buys 100 shares of $0.99 stock, it will cost $3.50 commission fee per trade. This commission is also applied to trading ETF and CEF (i.e. buy stock online, sell ETF online etc).
You also can place the following order:
- Market order
- Limit order
- Stop Loss order
- Stop Limit order
For Options trading, Options trades will cost $5.00 plus $0.65 per contract. To trade option such as buy option and/or sell option, it will have $5.00 ticket fees. This ticket fee is rather high compare to other discount brokerage. Any exercise or assignment costs $15. For example, a trader buy a 1 contract option will cost $5.65 commission & 10 contracts will cost $11.50 and a trader buy 10 contracts option, it will cost $11.50 commission fee.
For Mutual Funds, SogoTrade doesn’t offer any mutual fund trades.
For Others products, there are no offerings of futures, bonds, or forex trading at the present time.
Inside SogoTrade OnlineClick thumbnail to view full-size
Advantages and Disadvantages of SogoTrade
Pros using SogoTrade
- The commission is one of the lowest with $3.00 flat fee per trade for stocks trading
- Offer extended hour trading whether (Pre and after market hour) for small additional fee (add $0.005 per share)
- There is no account maintenance fee
- Offer Chinese language services
- Quick customer response or support through chat, email and call
- Will offer Gainskeeper for tax purpose for free during 2010
- Run several promotions from time to time. Currently Up To $100 back for account transfer & 100 free trades for 1 month.
Cons using SogoTrade
- There is no Mutual Fund trading
- Option trading fees is higher than other discount brokers (lightspeed, just2trade)
- No special order such as MOC or MOO or conditional
- No Bond, Forex and futures trading
- No foreigner account supported except Chinese (mainland China, Taiwan, and Hong Kong)
- high interest rate on borrowed margin
- No interest on cash balance
- There is no IRA account support
Customer’s complaints from research
- Doesn’t include dividend activity on their activity page
- Slow webpage from time to time
- Can’t sell against box (if you have a long position on a stock, you can’t short the same stock)
- No longer support for DRIP or partial shares
- Issue with account balance mix-up
- Cancelled trade didn’t get cancel after attempt to cancel the placed trade
recommend you mainly to use SogoTrade for trading stock. The commission fee is
straightforward with $3.00 per trade. If you trade mutual funds, SogoTrade is
not the right platform for this time since it doesn’t offer mutual fund. SogoTrade
offers a standard web based trading platform and a desktop software application
SogoTrade has some very good qualities for online broker. The registration process is easy and quick. The stock trading engine is one of the better platforms out there in online discount brokerage. Option trading platform is a newly added function and may lack some features but it has shown a real promise as SogoTrade continues to make an improvement in this area. Commissions and fees are among the lowest of any online discount broker. At the same time, the charts and research tools are a little deficient. SogoTrade does not accept mutual fund trades or retirement accounts such as IRAs so those looking for these features need to look elsewhere. Any cost conscious investors should give SogoTrade a try.
Disclosure: I have no affliation with SogoTrade. I just use their trading platform for trading. Please do your own research for additional details.
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