Features

What is an Alternative Trading System?

An Alternative trading system (ATS) is a US and Canadian regulatory term for a non-exchange trading venue that matches buyers and sellers to find counterparties for transactions.

 

Ustocktrade is a U.S Security Exchange Commission registered Alternative Trading System (ATS), which means we offer peer-to-peer stock trading without requiring another broker to facilitate your trade. This means 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 middleman, so we can provide faster settlement and low fees (only $1 per trade and $1 monthly membership. Click here for our full fee schedule).

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What is Same Day Trade Settlement?

Settlement Day is the date by which a buyer must pay for their trade.  Once the buyer has paid, the seller will promptly delivers the shares.  Traditionally this transfer is done between two different brokers and processed through a central depository, and as a result this process takes two business days to settle (T+2).  This means, in a cash account, you must pay for your trade before you can sell, and before you can use the sale proceeds to buy another stock. This can be frustrating if you want to buy and sell multiple stocks in a day because your previous sales proceeds are not available for three days. Because we match your order internally within our network, Ustocktrade facilitates same-day trade settlement at no additional cost to you. This means that trades are paid for immediately and your cash from every sell trade is available immediately – not restrained by the 2-day settlement period.

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NBBO data provided by Activ Financial, a third party vendor. Please read the Market Data Display service disclosure at ustocktrade.com/market-data-display-services and ustocktrade.com/disclosures

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 published at all U.S. markets at the time of execution. We show our members the exact price they received compared to the NBBO.

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NBBO data provided by Activ Financial, a third party vendor. Please read the Market Data Display service disclosure at ustocktrade.com/market-data-display-services and ustocktrade.com/disclosures

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 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.

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Explore our Trading Interface

Get a feel for our innovating trading tile, which allows you to research, place orders and strategies, and review your positions, all on a single screen.

View the Trading Interface