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I’m excited to share with you in this post another good online platform you can use for trading and investing US stocks and ETFs (Exchange-Traded Funds).
This is a perfect option for those who simply want to try it out even with little capital (as low as 1USD) and start the easiest way.
I’m talking about Gotrade mobile app.
I tried to open an account last week ago and it was very easy indeed.
And that’s actually their business promise: “Invest with ease.”
In fact, in less than 10 minutes after downloading the app, I was able to place my buy order for a stock of AMAZON (AMZN) with just 1 USD only! Plus, I got free $6 too upon sign-up completion.
Buy actual shares
Unlike other US stock trading apps, Gotrade doesn’t have CFDs (contract for difference).
That means you will be trading actual shares directly on the New York Stock Exchange (NYSE) and NASDAQ.
(Practically the same as buying Philippine stocks with COL Financial).
Gotrade also offers Fractional share trading. This is what allows you to buy any stock from a minimum of $1.
Other US brokers apps have been doing this so this isn’t really new.
However Gotrade makes it even because their minimum fund you can use to buy stocks is $1 only.
For example, if the price of an APPLE stock is $124, you can still buy it even with your extra $1.
In that case, you get around 1/124 = 0.008 fractional share of APPLE.
Another good thing is all trades on Gotrade are commission-free so this helps you maximize your returns.
There’s also no price spread too.
Its main income comes from foreign currency exchange (forex) rate difference during your funding.
Gotrade Account Opening
When you sign up to Gotrade, you need to have a invitation code. For me, I used the code of my favorite Tiktoker. If you’re reading this and you want to open an account with Gotrade, you can use this code below.
Gotrade will give you free $5 if you go through the complete process — signing up, getting verified, depositing $10, and trading your first stock.
For depositing into Gotrade, you can choose instant deposit to Gotrade and transfer up to $1000.
If you’re a Filipino, you can use your Unionbank bank account (instantly deposited with a fee of Php 10) or a BPI bank account (instantly deposited with a fee of Php 12) to deposit money. The minimum amount that you can deposit for both options is around $10, so the equivalent of whatever the given exchange will be.
You can also deposit in USD via Swift transfers.
Trading in Gotrade
If you want to trade a certain stock, just go to a particular stock that you want to purchase and click on trade.
When the markets are closed in the US, you can’t trade. I don’t know if it’s just my account (since I only deposited $30 to try it out), but there is no day trading or setting limit orders in Gotrade. You buy the stocks at market rate, which may be to a disadvantage for more savvy investors. It’s simple enough though for those who are starting.
How Gotrade makes money
If you want to know how this platform earns, they’re actually very transparent. In fact, they mentioned these things in the Gotrade app. I’ll share it with you here, too, just so you know.
These are Gotrade sources of revenue:
•A small fee collected on the foreign exchange from your deposits
•Interest income generated from cash
A premium paid subscription program (coming soon!)
•Interchange fees on your debit card spends (coming soon!)
Cost-wise, Gotrade is transparent with its fees.
You will see a lot of side notes during navigation explaining the fees if any.
As mentioned, there’s no commission charged and stock price spread.
Support seems good as well in the short time I’ve used the app.
Honest Gotrade Review
I appreciate the fact that the app is very simple to use. All of the features are presented in a way that’s very straightforward.
In addition, I love the way the sign up process (onboarding process). I just started last week ago and deposited $10, so I will still explore the app further and let you know my thoughts on this.
I bought partial shares of Apple (AAPL), Amazon (AMZN), Tesla (TSLA), GOOGLE (GOOG) and Microsoft (MSFT). Why? Because I strongly believe that these companies will perform very well in the future.
For each stock though, I appreciate the fact that they have a very comprehensive page that shows the market stats for the stock, news about them, and the story behind the company. This is for the users to read relevant information about the company who’s issuing the stock.
When you share your first few trades, you earn a dollar for each share. As for my experience, I earned few dollars by just sharing my trades on my Instagram story.
Withdrawals from Gotrade
You can enroll your bank account and they will deposit your money via SWIFT. Again, for full disclosure, I haven’t tried to withdraw yet. I’m holding on to the stocks, but once I get to a comfortable position, I will withdraw just to try it out and write about it.
Is Gotrade safe?
As stated on its website: “Gotrade and its partners are regulated. Your account is protected for up to USD 500,000 by the SIPC.”
The Securities Investor Protection Corporation (SIPC) protects the clients of brokerage firms i.e. you in the event the firm fails by offering insurance of the clients’ assets.
So there you have it, peeps! I hope this article helps.
Let me know if you have questions or tips for me regarding Gotrade in the comment section. I’d be happy to share it.
Again if you want to join Gotrade, here is my invitation code: