ChoiceTrade is a broker focused on stocks and options trading.
history of the company
Although the company has been operating since 2000, few have heard of it. “ChoiceTrade focuses on individual traders. We manage a team with extensive experience in trading in the field of securities ”, - you can find this information on the broker's website, and we will try to tell in this review what type of trader he is most suitable for.
The broker is owned by LetsGoTrade, Inc., which was incorporated in the state of Delaware on March 28, 2000 and changed its place of registration to Puerto Rico on January 13, 2017. The re-registration was carried out with continuity in accounting and taxation. Since January 13, 2017, LGT has been headquartered in San Juan, Puerto Rico.
99.90% in LetsGoTrade, Inc. is owned by ChoiceTrade Holdings, Inc.
ChoiceTrade Holdings, Inc. was incorporated in Delaware on May 13, 2008 and changed its place of registration to Puerto Rico on January 1, 2015.
Broker ChoiceTrade is licensed by the Securities Investor Protection Corporation (SIPC). Investments of clients are protected up to $ 500,000, of which no more than $ 250,000 can be received in cash compensation.
ChoiceTrade has one type of account that the broker charges a monthly fee to maintain.
A minimum of $ 100 is required to open a cash account. Moreover, if you intend to conduct day trading, then you need to deposit at least $ 25,000. The difference between these two amounts is global. The broker does not explain what he is offering on the $ 100 account. Possibly clients are gaining access to trading platforms. But, nevertheless, you can trade on them only with an amount of $ 25,000 or more.
Spreads and commissions
For trades in stocks and ETFs, the commission is $ 5 per trade, for all other commodities - $ 7 per trade, for trading foreign stocks in the United States with a five-letter symbol ending in F - $ 25 per trade, for options trades - from $ 5 to $ 10 per deal.
We could not find leverage information on the broker's website.
There are five platforms available on ChoiceTrade, three of which are paid. The cheapest option will cost $ 15, the most expensive $ 135.
It is a free platform that runs in a browser and has a demo version. Clicking on the graph icon will bring up a small graph where you can do some technical studies and comparisons. Another useful feature is the Power Basket, where you can enter orders for multiple stocks and simultaneously create deals for different stocks. The rest of the platform is very simple and does not support many useful functions.
While we found the ChoiceTrade platform not very useful, the mobile version was even worse. It lacks charts and checking deposit.
QuoteStream comes in regular and professional versions. The professional version has real-time alerts and a mobile app that the regular platform doesn't offer. News, extended charts, streaming quotes from major exchanges are available on both platforms. OTC quotes, CME data and Level II information are all additional charges.
Traders looking for direct access can use Direct Pro. Direct Pro comes with real-time Tier II quotes ($ 20 per month) and ECN books, news articles, real-time alerts. Sales times and windows are also helpful. The platform also supports option strategies.
Trading stocks on Direct Pro costs 0.25 cents per share with a minimum of $ 5.
The chart can be shown as a small window on the platform, or it can be expanded to fill the entire monitor.
The terminal can be used for 14 days for trading free of charge. The terminal has no real-time notifications, regional exchanges, Level 2 quotes. Now let's talk about what's on the platform: Dow Jones indices, Level 1 quotes, ready-made strategies, news headlines and the news themselves are included.
Among the significant services, one can single out their own ChoiceTrade platforms.
Support answers questions from Monday to Friday from 9.00 to 17.00 (GMT-4). You can ask your question by phone, e-mail or using the feedback form.
Ways of payment
The broker only supports escrow via bank transfers.
Criticism of traders
There are not many reviews of ChoiceTrade on the net. But let's try to summarize our review.
The broker charges a fee for literally every action that traders take - so it is definitely not suitable for inactive traders. We advise you to trade with ChoiceTrade for those who place many orders every month.
In addition, due to the near lack of available and useful training materials, this platform is probably not suitable for new investors. Likewise, not suitable for those looking for managed portfolios or personalized advice.
Nevertheless, ChoiceTrade can become a trading platform for investors who already understand trading in detail.
regulated broker; trading stocks and options.
no training materials and analytics; high deposit for trading; the broker charges fees for using the platforms and maintaining the account - and these fees are higher than the industry average.
No one has commented on this broker yet
CHOICETRADE is a brokerage company whose task is to provide intermediary services to traders. Brokers provide access to currency trading in the first place. Many of them also provide an opportunity to transact with company stocks, bonds, commodities, precious metals, indices, cryptocurrencies and other assets. A private person can make transactions with all these instruments only on the trading platform, which the broker provides access to.
In addition, thanks to the brokerage company, an individual can operate on the market with amounts that significantly exceed the size of their own funds. This is called providing leverage. For example, having a deposit of 1,000 USD with a 1: 400 leverage, a trader can make deals for 400,000 USD.
The broker also opens access to analytics, auxiliary tools, and trading signals. Modern trading is impossible without all this.
The broker CHOICETRADE makes profit from traders' transactions, as a rule, in two main ways.
The first is the most common. Using spreads. This word refers to the difference between the best prices for buying and selling a particular asset at a particular moment. Moreover, in a transaction between a trader and a broker, the price is one, and between a broker and users of the Forex market - another. The mediator takes the difference for himself.
The second way is easier to understand. This is the collection of a commission for each transaction performed. Most often it has a standard value, but it can be measured as a percentage.
Thus, the brokerage company is interested in attracting as many clients as possible and for them to conduct active trading.
We have found out how honest brokers should work and how they work. Now let's look at how scammers operate, they are also called the kitchen.
The most common way to cheat is to tweak quotes. The broker provides the trader with quotes that differ from the real market ones. Data substitution occurs in order to make operations unprofitable. The deposit is reduced, and then completely zeroed out. At the same time, the trader thinks that his operations were carried out in the market, but in fact - only on the site of scammers.
Bonuses are traps. They are generously distributed for anything: for registration, account replenishment, etc. Only after that, in order for the client to withdraw his own money, mixed with bonus money, it will be necessary to fulfill a number of virtually impossible conditions. For example, conduct trading operations for an amount tens of times greater than the size of the deposit.
In the User Agreement, a clause can also be disguised that allows the broker to manage the client's money. Inattention when reading such an agreement most often turns into a complete loss of the deposit.
One of the key points is the place of registration and regulation of the company's activities.
Let's talk about registration first. As a rule, brokers from either their own country or from an economically developed country, for example, a member of the European Union, are more credible to traders. Of course, compliance with UK legislation is reassuring, and compliance with the legislation of an unknown island in the Indian Ocean does not mean anything to most.
However, most brokerage companies are registered offshore. And it's not only about small offices, but also about world leaders. Saint Vincent and the Grenadines, Belize, Marshall Islands, Mauritius are offshore zones popular among brokers. By registering there, companies pay significantly less taxes than in the place of actual location, which is sometimes carefully hidden.
If a trader has any claims against such a company, then it is likely that he will have to deal with it in accordance with the legislation of that very conditional Belize. It is possible to be physically present there at the court sessions. And this is extremely expensive and difficult.
But is it worth running like fire from just the word "offshore"? As an answer, we will give the names of companies that are not related to brokerage, but with an impeccable reputation and also save on taxes through offshore registration: Apple, Pfizer, Microsoft, General Electric, Intel.
And here we come to the second important point - this is the regulation of the broker's activities. First of all, it is carried out at the level of the state where the company is registered. Each country has its own regulatory body for brokerage activities. So, in Russia it is the Central Bank of the Russian Federation. A trader can find permissive documentation on the websites of such bodies. But there are also supranational structures. For example, the International Financial Commission (The Financial Commission), which is an independent self-regulatory organization, considering disputes between its members - brokers and their clients.
If the broker's website does not contain information about the regulation of its activities, then these are almost certainly scammers. Or the site contains information about a certain license issued to him, but this information is not confirmed anywhere else. Most likely, these are also scammers.
When choosing a brokerage company, study its history. Check out the links to her experts. If one of the leading TV channels in economic news for 5 years in a row refers to the opinion of the analyst of the broker in question, this is good. If a broker claims to have been working for 15 years, but there is no information about him on the Internet at all, this is bad.
It's important to pay attention to company reviews. And read them not only on the website of the broker itself. In the kitchen, they will probably only be laudatory. It is best to browse as many sites as possible.
Pay attention exclusively to the specifics in the offers on the brokers' websites. Honest companies openly write about interest, spread size, minimum deposit, etc. Fraudsters lure with loud, streamlined phrases about a rich tomorrow, stable income, misleading with incomprehensible terms about multi-sites, super functions, and so on.
Find out the company's connection with well-known brands, financial institutions, public organizations. For example, it can be sponsored. Large brokers sometimes hold social promotions. Fraudsters will definitely not do this.
Thus, the process of choosing a broker is complex. But if you approach it carefully, it will allow you to enter the world of trading, which has made millions of people rich all over the world.
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Before any trade and choosing a broker You must always read reviews on this site and on other sites. Brokers who are honest, have a rating of above 3.8. Also there is always the risk of loss when trading CFDs. Be careful and read the disclosure on the website of the broker. CHOICETRADE received a score of 1 of 5 on our resource.