Learn How We Do It

What is a retail stock trading network?

Ustocktrade is an Alternative Trading System, which means we offer peer-to-peer stock trading without requiring another broker to facilitate your trade. This means that if you want to sell a stock and someone in the Ustocktrade network wants to buy that stock, we can match the order directly between buyer and seller.

Many firms route or sell orders to a wholesale  broker dealer for execution, often charging a higher commission or missing an opportunity for the customer to get a more favorable price. At Ustocktrade, we don’t route or sell your orders, and there is no middle man, so we can provide faster settlement and low fees (only $1 per trade and $1 monthly membership, click here for our full fee schedule)

How do I know I am getting the best price in the market?

We match trades at the national best bid and offer (NBBO), which are the best buy and sell prices in the entire U.S. market at the time of execution. We also provide for price improvement when the spread allows it. We show our members the exact price they received compared to the NBBO.

What is T+0?

Usually, because a traditional order handled by a broker is sent out to the external market, the proceeds of a stock sale take 3 days to settle (T+3) before you can use that money to buy another stock. This can be frustrating if you want to buy and sell multiple stocks in a day, but your previous sales proceeds are not available for 3 days. Because we match your order internally within our network, Ustocktrade facilitates same-day settlement, at no additional cost to you. This means that your cash from select sell trades is available immediately and is not restrained by the 3-day settlement period. T+0 trade settlement currently occurs in a limited instance of trading on the Ustocktrade platform.

If you provide peer-to-peer trading, how do you provide liquidity?

Ustocktrade matches buy and sell orders between members within the network. In the event that there is no member to take the other side of the order, a liquidity provider (a “superuser”) steps in to complete the trade. The superuser is similar to a market maker, but unlike market makers the superuser does not create the market or set the price. Instead, it simply acts as the counterparty to complete the trade at the NBBO price or a better price.

How can Ustocktrade offer 1-day fund transfers?

We understand the need for fast fund transfers, so Ustocktrade has partnered with banks to release customer funds to their Ustocktrade trading account in one day rather than waiting the standard three days. Our innovative platform and awesome bank partners give us the flexibility to provide this quick turnaround.