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SogoTrade Review

SogoTrade® is a deep discount online brokerage with a very low stock commission of $3 for stocks over $1/share. Options are also fairly cheap at $5 + 65 cents per contract. While the low commissions are attractive, you don’t get a whole lot in terms of features and available investment securities. SogoTrade offers stocks, options and ETFs at this time. That’s it. No mutual funds or bonds are available. SogoTrade does offer fractional shares, however, with no subscription fee. This means you can buy a fraction of an expensive share that you might otherwise not be able to afford.

Account wise, SogoTrade does not offer IRAs, only individual and joint standard accounts. They do not offer a money-market sweep for unused cash in your account, so you won’t earn interest on your non-invested money. On a positive note, SogoTrade does not charge any inactivity or account maintenance fees.

Customer support is available via phone, email, and live online chat. There are no ratings from major investment publications, so one is left to ponder the mixed bag of reviews from users online.

The SogoTrade website is average in terms of speed and functionality. Order entry for stocks gets the job done, but there is no option for modifying orders which we find pretty lacking. Instead of modifying an existing order you’ll have to cancel it first and re-enter a new one. The options order interface seems to be a work in progress, not yet allowing for complex options order types such as butterflies.

Charts are supplied by Big Charts, which is fine for basic charting, but not very powerful for those who like to see the nitty-gritty details. Unfortunately you cannot save chart configurations to use at a later time. SogoTrade has a decent number of research tools to use, but none of them are very impressive. Compared to other brokers it seems like some things are missing here.

SogoTrade offers a software based, direct access trading platform called SogoElite. This gives you account information, streaming data and simple order entry in a software based platform. The platform also allows for direct access trading at $0.005/share, $1 minimum. There is a $10 monthly data fee. We are disappointed to not see Level 2 quotes with this platform.

Opening a SogoTrade Account:

The SogoTrade application process is quite simple, and is broken up into easy steps. It can be completed in under 10 minutes, and will save your info if you need to stop the application and resume it at another time. Once the application is complete your account will have to be approved and activated which typically takes 24 hours according to SogoTrade. Once activated you will need to set up an ACH relationship with your bank. Miro-deposit verification is required, as well as a faxed or emailed voided check. This process will take a few days at best, so if you need a usable brokerage account quickly, look elsewhere. The minimum to open a cash account is $500.

Available Equities and Commissions:

  • Stocks/ETFs – $3 (For stocks over $1, Broker Assisted – $27)
  • Options – $5 plus $0.65 per contract
  • Fractional Shares – No subscription fee

Other Details:

Annual/Maintenance Fees: None

Direct Access Trading: Available ($0.005/share, $1 minimum)

After Hours Trading: SogoElite Only

Penson Cleared: No

Software Platform Based Data/Trading: Yes – SogoElite

Web Based Streaming Data: Available

Level 2 Quotes: No

Online Trading Community: No

Live Online Chat Support: Yes

Mobile Trading: Regular Website Only

Penny Stock Surcharge: For stocks under $1 an additional 1/2% of the trade principal will be added to the normal $3 commission. Also, for trades of more than 100,000 shares, customer service must be contacted.

SogoTrade Pros:

-Low $3 Stock/ETF commission

-Fractional shares

-No inactivity or maintenance fees

-Direct Access Trading available

SogoTrade Cons:

-Surcharge for penny stocks (under $1)

-After hours trading only available with SogoElite

-Website features and tools are average at best

-Options order interface is lacking

-No IRA accounts

-Slow account approval and ACH setup

-No Money Market cash sweep

-Mutual Funds and Bonds not available

The Verdict:

SogoTrade is an OK option for people looking for a cheap, bare bones brokerage for trading stocks. That’s about it. The pro’s (listed above) of a SogoTrade account are nice, but in our opinion, they don’t outweigh the cons. We believe you can do much better with another broker such as ChoiceTrade.

Sign-up Promotion:

Open an account and deposit the $500 minimum funding level, and get 100 free trades (good for 30 days).

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Last Updated on July 26th, 2010 at 4:56 PM

User Reviews and Comments

One User Review of SogoTrade


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  1. John Locke says:
    November 8th, 2010 at 3:28 PM

    I have been using SogoTrade for 2 years now and have been very satisfied with their service. The trades are very cheap ($3 per trade), there aren’t any hidden fees or tricks to take more money. No maintenance fees or any other fees. The trade ticker is real-time, and trades take place within 1 second, with the option to cancel until about 3 seconds after. I’ve called their support line about 8 times to ask information, and I always immediately got on the phone with an intelligent representative who knew the answers to my questions.

    To receive 25 free trades, use referral code 564838 when signing up for SogoTrade. The free trades are valid for 90 days after signing up. A minimum of $500 needs to be deposited before you can begin trading. You can do free ACH transfers to and from your bank account.

    SogoTrade is probably the cheapest online-trader there is, with a service that is on par or better than the three other companies I used to use for stock trading.

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