Sunday, January 24, 2016

My Thoughts on Suretrader

When I decided to get into day trading I made sure I did my research.  How day trading worked, what tools I would need, what the minimum investment I would need to get started, as well as the tax and legal codes I would run in to.  I am a big fan of the TV show American Greed, and it showcased some of the most prolific violators of the SEC laws so I was more concerned with those laws than most.  Upon reviewing them, I came across the Pattern Day Trader (PDT) rule.  I was crushed.  How am I supposed to be able to make it when I can’t day trade due to the fact that I had less than 25k to put in a brokerage account?  I began searching for answers.  At the time the only conclusion I came to was to open multiple accounts, but with my limited funds, that wasn’t feasible. 

I don’t remember how but I came across Suretrader.  As usual, I did my due diligence and found some conflicting and concerning results.  I knew from experience that you could not trust everything that you read but I was very concerned about using an off shore broker.  There was something about not being in closer contact with my money.  Maybe if they offered debit cards or something like that I would have felt better but, at that point, I did not have any other choice so I decided to open an account with them.  This blog will share my experiences that I have had with Suretrader from the beginning of my time with them.

Let me first start by saying that I would not be here right now without Suretrader.  There is no way I could have started day trading without them.  I am a true “Average Joe” blue collar American who had to work and struggle for every penny I made so this decision was not made lightly.  So thus begins my journey with Suretrader.

I had a pretty easy time opening an account with them.  The application process was a little different but once I had the application completed I received an email a few days later saying that my account was ready to fund.  The only extra form US citizens have to fill out now is a W9 tax form.  They asked for professional references and bank references but they never contacted them.
I opened a bank account specifically for funding and withdrawing from Suretrader, again just being careful because of the off shore deal, and ordered a debit/credit card for that account.  I funded my account using my credit card and the money was available for trading the next business day.  I have read many negative posts about people having issues opening an account with Suretrader but I can honestly say that everyone I personally know that opened an account did not have any issues opening and funding their account.  There have been some changes in funding since I opened my account back in 2014 but everything for the most part is the same.  Funding with a credit/debit card is the fastest, but it costs 3.5% for it.  The only way this fee adds up and becomes a problem is if you constantly blow up your account and you have to keep adding back.  It’s free to fund via bank wire transfer but it takes longer for the money to be credited to your account.

The only issue I had with withdrawing any money was the rule they had that your first withdrawal had to be done by the same method you funded with, and for no more money than what you originally funded with.  After that there were no restrictions.  To get your withdrawal through bank wire, you will pay a $40 fee.  You have to go through a bank verification process that takes about a week to complete.  Then there is another process to go through on the i-boss platform.  However, once you have done it one time it will be a lot easier.  I withdraw from my account every month using bank wire and the process in pretty painless.  The money is in my account within a few days.  Actually now the wires are cleared for US clients through Citibank in New York so that makes the processing quicker for us.

When I started I was budget minded so I opted to stick with the Active Web platform.  For day trading that platform is a handicap.  It’s only as reliable as your internet connection and in the 2 years I have been with them their server has been attacked numerous times.  Not that your information or account are compromised, but your ability to enter and exit trades would be.  Also, if you lose money during these crashes, Suretrader will not refund your money.  They have a risk disclaimer on their website that states that they are not responsible for losses incurred due to trading malfunctions or system disruptions.  I highly recommend getting the Suretrader Pro platform.  I have not experience any major problems with it.  All of my issues with the Pro platform have been due to my firewall.  I have the Suretrader Pro platform, $49, Market Depth Data Access $40, Regional Quotes (Basic Level 2) $15, and NASDAQ Total View (Book Depth) $20 for a total of $124 per month.  It is well worth the subscription costs.

Their customer service is good but it can get bad during crisis times for two reasons.  They do not have a lot of customer service reps and most of their client base are made up of new traders who do not have a clue what they are doing.  You can’t imagine how many people open up trading accounts who do not even know how to enter a buy or sell order.  The chat lines and phone lines are jammed all day with questions that are similar to that with things traders should learn through taking courses and paper trading prior to opening an account.  So I really don't bash them about their slow customer service. When these traders lose money, of course they blame Suretrader.  They never blame the shortcuts they took or the education they didn’t receive prior to trying to trade live.  Is Suretrader completely innocent?  Of course not.  If you are not careful and keep up with your account, you can “accidently” get double charged for commissions or platform fees.  It won’t happen to you often but it does.  They will refund it though.  You just have to stay on top of that.

Here’s the deal; Suretrader is a necessary evil if you have less than 25k to open a trading account with.    90% of their clients are brand new traders so they are a lot more at risk to lose their money in addition to money they don't have so Suretrader treats us like a high risk client the same way a bank would treat a high risk customer that doesn't have a good credit record.  Therefore they have a few more fees and rules than most.    

So what advice do I have to those who want to open accounts with Suretrader?  Well first, invest in your education.  Without it you are a mark and they will take every dime you send them.  The plan I recommend is laid out here:  http://www.warriortrading.com/getting-started/ Never open any brokerage account and start trading without the proper education.  Make sure you read all of the rules and understand all of the fee schedules.  They are not outrageous.  You just have to make sure you understand how to not make a mistake and incur these additional fees.  Open up a bank account specifically for funding and withdrawing from Suretrader.  Do not keep any more money than absolutely necessary in there.  This should give you peace of mind as it relates to your protecting your other money.  Do not over trade.  Over trading leads to increased fees and exposed risk in the market.  Get the Pro platform.  This will save you a lot of headaches and greatly reduce your risk of losing money due to execution issues.  Just because you can open an account with $500 and day trade doesn’t mean you need to trade.  I would not recommend trading with less than $2500.  I know I started with $1500 but I believe I was lucky to catch some major short squeezes when my account was very low.  Make sure you understand margin and how to use it correctly.  Margin can destroy an inexperienced trader before he even gets started good. 


SureTrader is actually one of the leading online brokers for day trading. With a multitude of features, advantages, and benefits, you should definitely giving them a shot. Just make sure you know their trading rules and regulations thoroughly.  They have good, but sometimes slow customer service but will answer any of your questions or concerns. If you’re under 25k and looking for a solid broker to day trade with, SureTrader has everything you need, so it’s worth checking them out! 

23 comments:

  1. Thanks for the info. The PDT rule is really ridiculous.

    ReplyDelete
  2. Thank you for the post as always, Ed!
    I was wondering why you use the TOS platform to chart your trades, rather than DAS Trader from Suretrader, is the latter one a lot worse? I am residing in Europe and unfortunately do not have access to the TOS platform with real-time data. The only other option I would have is to purchase eSignal, but which comes with substantial extra overhead on a $5k account. How would you grade Suretrader and its ability to chart strategies? Any suggestions?

    Kind regards!
    Sil.H

    ReplyDelete
    Replies
    1. I use the TOS platform because I like the charting better than DAS. It's what I "grew up" on and I really don't have any reason to change up what I am doing. The Suretrader Pro (DAS) platform is good and more than powerful enough for serious day trading.

      Delete
  3. Ed,

    I've been following your journey for some time now through your blog and youtube channel and want to thank you for the information that you share. It's truly inspiring and extremely helpful!

    Quick question. How much of a difference have you noticed after adding the NASDAQ Total View (Book Depth) in addition to the Regional Quotes (Basic Level 2)? I am thinking of adding it to my DAS platform and want to be sure it is worth the additional $20/month.

    Thanks again and keep up the great work!

    ReplyDelete
  4. Hi, thanks for the comments! I'm glad my blog has been a help to you. I'm sorry but I can't answer your question. I have always had the NASDAQ total view so I wouldn't know what it would be like without it.

    ReplyDelete
  5. This comment has been removed by a blog administrator.

    ReplyDelete
    Replies
    1. I have the Suretrader Pro platform and I pay $124 per month. I have in addition to the Base Pro platform fee, $49, I have the Market Depth Data Access Fee, $40, Regional quotes (basic level 2) $15, NASDAQ Total View, $20.

      Delete
  6. !!!! I was looking for something like this ,Thank you for posting the great content……I found it quiet interesting, hopefully you will keep posting such blogs…!!!!
    Stock Cash Tips

    ReplyDelete
  7. Hi Ed, you said you only subscribe to "regional quotes (basic level 2)" and "NASDAQ Total View". Does this give you full depth of book for NASDAQ stocks though, don't you need acabook equities as well? I noticed suretrader doesn't have simply arcabook, but have NYSE arcabook, is this the same thing?

    I know with Interactive Brokers, you have NYSE open book and arcabook equities, as two separate subscriptions. Sorry I'm a bit confused, I'm looking at switching from IB to Suretrader.

    ReplyDelete
    Replies
    1. I haven't had any issues with what I have, but I rarely use the level 2 on the platform.  I use TOS for my charting and level 2.  The Suretrader platform is just a backup.

      I'm not sure how Suretrader has it setup compared to the other brokers that use DAS. I just went by what they recommended and it matched what I have with TOS

      Delete
  8. quick question: how long did it take you to withdraw and deopsit from suretrader?

    ReplyDelete
    Replies
    1. To withdraw usually 2 days. When I used to deposit I would use a credit card and it was show up the same day if I deposited early enough

      Delete
  9. Thanks a lot Ed. So all of your trade are exectued by SureTrader but you use TOS platform for charting?

    Also I am with IB, and following your trades in chatroom. Youhave a different strategy from Ross (you are not a momentum trader). So filling orders fast is really not an issue with your style of trading. Do I need to switch from IB to SureTrader to be like you?

    ReplyDelete
    Replies
    1. Hi Amin, You are right, I use TOS for charting and Suretrader and Speedtrader for trade executions. I don't think you would have any issues with IB.

      Delete
  10. Thanks Ed. I cant wait to be a trader like you! And I am looking forward to your private mentorship!

    ReplyDelete
  11. This comment has been removed by the author.

    ReplyDelete
  12. Ed, there is also an important thing about SureTrader. They are not part of FINRA and execute orders in "principal capacity". It means that they are always execute orders from their own inventory and not the market. This conflict of interest can be very dangerous, specially in momentum volatile stocks, and market order. So essentially you are trading against your own powerful broker.

    https://suretrader.com/support/frequently-asked-questions/#faq-would-my-account-be-subject-to-pattern-day-trading-rules

    ReplyDelete
  13. Thanks for sharing info. Keep up the good work...We hope you will visit our blog often as we discuss topics of interest to you

    tradorax scam

    ReplyDelete
  14. This comment has been removed by a blog administrator.

    ReplyDelete
  15. You have a real ability for writing unique content. I like how you think and the way you represent your views in this article. I agree with your way of thinking. Thank you for sharing.
    Withdraw Bitcoin to Bank Account

    ReplyDelete
  16. Thanks A Lot for sharing this information with nice details, I am from brazil, and want to start trading american stocks with no much money, so suretrader is exactly what i was looking for. Cheers!

    ReplyDelete
  17. Hello everyone..Welcome to my free masterclass strategy where i teach experience and inexperience traders the secret behind a successful trade.And how to be profitable in trading I will also teach you how to make a profit of $12,000 USD weekly and how to get back all your lost funds feel free to email me on(brucedavid004@gmail.com) or whataspp number is +22999290178

    ReplyDelete