Darius is a former high school literary and feature writer with an inherent interest in learning on savings, stocks, and investing.
Ever since the advent of the internet, and phones being wildly available for the common masses, recent years have shown a surge in usage of brokerage apps and online retail trading. Many have come and gone, and some even made news headlines, local or international, that had garnered either fame or infamy in just a span of a short time, even those that retained its status or notoriety in the long run.
Among all the giant names and methods that are now well-known, many are still in the market that needed attention due to their ease of access, usability, accommodating user experience, and wide range of availability. One of them is an online brokerage application I have discovered from my casual deep-diving into the internet named Gotrade.
What is Gotrade?
Gotrade is an online mobile brokerage app. It is available in both iOS and Android for download, and for 150 countries (except the US, Canada, and Brazil). It acts as a sort of gateway to come and trade in the US stock market, ranging from well-known corporate giants to small-time and start-up companies. It also offers you choices for investing in ETFs or Exchange Trade Funds.
For as little as $1 per minimum of $10 deposits, the means of trading and investing to multiple arrays of companies are made highly possible by owning a fraction of a chosen company and earning from it. They offer low-cost yet high-quality service and will not ask for commissions per transaction (i.e, buying and selling stocks, etc.) Their company earns from the foreign exchanges of the users' deposits, interest income generated in cash, and fees available to look and research into their website and app.
Based in Singapore, Gotrade is a trading name of TR8 Securities Inc., which is a securities licensee licensed by the Labuan Financial Services Authority found in Malaysia. Rapyd, a mobile financial network, handles the overall deposit processes in the app by converting local currency to dollars, and Alpaca LLC, a Silicon Valley-based API-first stock brokerage that allows developers to build apps, services, and trading algorithms that can access the US stock market, handles the overall withdraw transactions that go on within Gotrade and handles support on adding and maintaining the apps' companies/stocks and ETFs. They are an appointed clearing broker and custodian of Gotrade, where funds and stocks will be held.
How to Open an Account?
You can start an account using your Google account or your Apple ID.
- You will then be asked for your complete name and phone number.
- As you're nearing your sign-up process, the app will ask if you have any invite tokens. The app is still in an invite-only stage, meaning that invite tokens are uniquely created for fresh users and can be shared with those that are willing to join the app. Input a correct invite token during the sign-up process.
- The app will then ask for your email, selfie, and pictures of your government-issued/state-issued IDs or documents. Do also note that you have to be at least 18 years old to join the app.
- It will also ask for personal information like name, birthday, work and workplace, and address.
Creating a personal account on the app takes less than 10 minutes provided that you have the necessary documents they need. Of course, they'll have to have your full consent into giving your personal and sensitive details and this information are well-protected within their databases. They also have highly responsive customer service, and you can view any necessary details within their website's FAQ pages should you have any questions or concerns.
Going Through the Gotrade App
The current GoTrade app has five existing functionality tabs for its users to dicover.
- The first tab of the Gotrade app shows the investment and trade portfolio of the user handling the stocks. It shows the total that you have as well the stocks that you own.
- The second tab shows the spread of stocks showing their respective up and down percentages as well as a dashboard where you can see the progress of your account. This section of the app helps you track your investments and make you see a the data collected from trading to particular companies.
- The third tab functions as a search engine of the app for you to search and look for promising stocks that you want to invest in. It also features the top 100 stocks that people around the world are flocking into, as well as categories and tags of stocks should you have any specifics that need to look and find.
- The fourth tab presents the functions to where you can deposit your amounts using your virtual or physical card, as well as withdrawal functions, or view your funding activities.
- The last tab is where your profile is and where you can edit it, or change the PIN, view their FAQs and Legal pages by clicking on their links, and all-around management of personal information.
What are the Features of Gotrade?
The great thing about the app is that it offers no percentage on stock purchase commissions as fees, no admin fees, no custody fees, no inactivity, and no dividend fees (dividend fees still depend on the country you are in so do tiny research about it). They do have very small deposit fees and it's not a problem if you're into long-term trading and investment. They also updated their withdrawal fees by bringing it down 82%, from $12 to $4 per withdrawal.
Another great feature is that you can buy a fraction share, or 9 to 12 decimal points of a share, of a company from the US stock market for as low as $1 all the while earning from it.
The app will reward its users during each step of the sign-up process. The $6 rewards are quickly deposited into the created account, another $3 if the account holder deposits a minimum of $10 and $1 after the first purchase of any stock. All accounts are also available to hold at least half a million dollars and are also protected by the SIPC.
If you check your email regularly, they often send events that would let you win $50 of a chosen stock and by joining and winning the event. This regularly depends on the criteria of the event, and often held in Instagram.
How to Buy and Sell in Gotrade?
Buying and selling fractions of a portion of stock in the app is made easy due to its great UX and smooth UI. The app will give you three options in buying on a specified stock:
- buying in dollars,
- buying in share,
- and buying at a limited price.
Buying at a limited price is a function wherein the buy function will execute should the market price of that stock goes lower than your buy price.
Selling is also easy as the three options mentioned above are included. All you have to do is choose a stock you've bought from your portfolio, click the trade button, and choose the sell option. You can specify the sell option, a sell amount, or click on a button to sell all your stocks.
Gotrade's Pros and Cons
The Gotrade app alone has at least 800 companies, at least 1000 stocks, brands, and corporations you can choose from and trade. The developers are also constantly adding up newer ones every update. Apart from the well-known companies, blue-chip corporations are also in the app as well as startup businesses. Apart from corporations, multiple ETFs are also in the app where some are well-known in the US alone.
2. Access to World's Biggest Companies
Google, Tesla, Amazon, Disney, Netflix to name a few are in the app. These are just some of the prominent companies that you can invest in, apart from the newer, older, high-end, and emerging businesses that are constantly being added to the app per update.
3. Convenience and Ease-of-use
The app's functions, UI, and UX are highly optimized to cater to users' needs. Their graphs are understandable, and their gathered data from the US stock market are showed to be as accurate as possible. Creating an account and depositing from your bank is also almost hassle-free, and their user services are highly approachable in terms of questions, concerns, and suggestions.
1. Not for a day-trader
The app has a rule where you can only transact in the same certain stock for at least three times a day in a span of five trading days (Monday to Friday) for an account that has less than $25,000. The market hours in the app are also open only in limited periods:
- 9:30 AM to 4 PM Eastern Time (March to November)
- 10:30 AM to 4 PM Eastern Time (November to March, Daylight Savings Time)
2. Only US Stocks and ETFs
This means that, if you're looking into investing and trading, FOREX, Crypto, securities, commodities, or other commercial retail are not in the app and this app may not be for you. The app only caters both US Stocks and ETFs for trading and investing for the meantime, but there may be some changes in the future when the app becomes a further success than what it is already now.
3. Higher Risk
The golden rule in investment and trading is that low risk equals low reward and high risk equals high reward. And, since we're investing in the US stock market, you should always keep in mind the risks you are taking in investing and trading certain stocks. Be cautious on your expenditures and do a little or a lot of research beforehand as the information you'll gather will be valuable in time.
For both a pro and a con, it also has high volatility. Compared to what we have here in my country (the PSEI or the Philippine Stock Market), the US stock market has higher activities and engagements from multiple sources that will make the prices move up and down at a faster rate. This is a pro since it means that there will be random, sporadic increments and decrements of stock market prices, and con since it facilitates an aggressive appetite for investment other than the conventional, conservative one that often guarantees earnings in a long run.
For what it's worth, Gotrade is a robust app for traders and investors hoping to learn a long-term mindset. Its beautiful UI and superb UX are top-notch, and its functions and services are highly recommended. It sets you up for few learning curves during use and will let you a glimpse of what goes on in the financial industry. Nevertheless, ample research for what you're getting into still needs to be kept in mind.
- Gotrade website that you can check out.
- Gotrade FAQ section.
- An article from Esquiremag Philippines about Gotrade.
- Gotrade article from Tech Crunch.
- Gotrade business and corporate information from Crunchbase.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2021 Darius Razzle Paciente