Are you looking for a full-service investment broker with access to international markets? With this broker, it’s possible, but there’s a catch. Read on to find out why in our StockCross Review.
StockCross is a full-service online broker that strives to offer personalized, one-on-one investment services. Their online platform caters to domestic and international investors who use it to place trades and keep track of their investments. Established in 1971, StockCross Financial Services, Inc. is one of the largest privately-owned brokerage firms in the nation. StockCross is headquartered in Beverly Hills but has offices in major cities across the United States.
They offer all the standard financial products like stocks, options, ETFs, Mutual Funds, and fixed-income products. These options can satisfy the needs of savvy investors everywhere who require a firm to help them diversify their investment portfolios. From what I can see, Stockcross focuses on providing the resources needed to grow your portfolio over the long run.
Their website is professional and user-friendly – always a bonus, with many resources for retirement planning, tax guides, and educational purposes.
To open an account, you must have at least $1,000 in equity for IRAs and $2,000 for all other accounts. This is far more than other brokerage firms, even the most elite, would charge. As a result, this could limit the new investor starting with limited capital.
Free Trial
You don’t rush out to buy a car without driving it first. It might look all sparkly and shiny, but be a lemon on the road.
Luckily, StockCross lets you try before you buy—no chance of buying a lemon here.
Now, this is cool: StockCross lets you access advice from their investment specialists, FREE OF CHARGE!!!
They also provide site tours to potential clients to help them become familiar with the site and the firm’s services. Furthermore, they also offer online tutorials, which are helpful for newbies.
Personalized Approach
You’ll be impressed When you head over to the tools and platform. For example, the trading platform can be personalized. Think customizable time and sales, charting, watch lists, alerts, your positions, and balances, to name a few.
They even have an advanced platform that has some great features. While it is powerful in its way, it won’t satisfy active day traders who need hotkeys and direct market access. If that’s you, I highly recommend you check out more powerful platforms like TD Ameritrade’s ThinkorSwim or SpeedTrader.
But all things considered, it’s most certainly adequate for investors.
No fear if I’ve lost you and you don’t know the difference between an investor and a day trader.
COURSE |  |  |  |
|---|---|---|---|
| DESCRIPTION | Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action | Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading | How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading |
| INCLUDED | Daily watch lists • Trade rooms • Trading scanners • Discord • Live streaming Day Trading > | Daily watch lists • Trade rooms • Options scanners • Discord • Live streaming Options > | Futures target levels • Trade rooms • Real time teaching • Discord • Live streaming Futures > |
StockCross Pricing Review
- The commission structure is pretty well hidden, and it’s not added to the total sale price.
- Day traders, don’t fall off your chair. What I’m about to tell you is a jaw-dropper.
- The company charges $19 per stock and ETF trades.
- Options trades are priced at $19 plus $2.50 per contract.
Haha, yes, you read that right. Perhaps this is the most expensive of all the brokerage firms I’ve seen. So, what do you do with this information? If you’re anything like me, I want to save money. And as an active day trader, StockCross doesn’t make the most sense money-wise for me.
If you’re in the same boat, I suggest checking out some low-fee brokerages there. Firstly, you have a lot to choose from. Secondly, many charge less than a third of the price of StockCross.
What’s more, while it’s great that the company offers foreign securities, there’s a catch. Investors are hooked; these stocks have a $75 transaction fee.
Also, if you happen not to trade in a given year, they take a $50 charge for the privilege of letting them hold your money and paying below-market rates.
Hidden Fees
Are everywhere! Like most brokerage firms, the company tends to add on multiple fees; no surprise there, just be aware.
They charge you a $50 maintenance fee on your account. What’s more, canceling a payment will set you back $25. Even monthly statement fees cost $2 a piece, to be exact.
Another thing to remember is that if your account goes negative, they sell your shares without notifying you. Personally, this leaves me a bit hesitant.
StockCross Pros and Cons
Traders, consider yourself warned. Their commission schedule is expensive, but they offer much in return.
Pros
- Variety
- Customer Service
- Personalized Service
- Prices and fees
- Mobile
- The account minimum and inactivity fee
- FINRA Fines
Cons
- Prices and fees
- Mobile
- The account minimum and inactivity fee
- FINRA Fines
A significant drawback to the brokerage is their lack of a mobile trading app. This will be a deal-breaker for the busy investor who is always on the go.
$800,000 Finra Fines
To cut a long story short, when a transaction is complete, firms must deliver the shares to a registered clearing agency for settlement.
The firm must be net flat or long in the relevant security at the end of the “close-out” date. If the shares are not delivered in time, the SEC’s Reg SHO requires the firm to purchase or borrow the securities to cover their failure to deliver.
If the failure to deliver is not closed out, the firm cannot accept additional short sale orders of the security without first borrowing or arranging to borrow the security.
Well, the FINRA came knocking and found that from November 2009 to May 2013, StockCross was not complying. They were not meeting their close-out obligations. This was due to a software flaw. It failed to deliver on 1,826 occasions.
Additionally, StockCross executed at least 4,132 short sales when it had an outstanding close-out obligation for such securities and did not first borrow or arrange to borrow the security.
Moreover, the FINRA found that StockCross did not have a supervisory system. This would include written supervisory procedures designed to achieve compliance with Rule 204 of Regulation SHO.
This is concerning but has since been resolved.
Final Thoughts: StockCross Review
The range of investment opportunities will satisfy investors looking to diversify their portfolios. Coupled with access to specialized support, users will feel supported every step of the way. However, StockCross’s incredibly steep commission rates are too difficult to justify. Since so many discount brokerage firms offer similar services, it’s a tough sell.
Despite their excellent customer service and user-friendly platform, you can get a better bang elsewhere. And if StockCross wants to compete with the other brokerages, they should reduce their fees accordingly.
Frequently Asked Questions
Investors cannot purchase shares of StockCross because the company is privately held.
