SogoTrade Review 2020

SogoTrade has low stock and ETF fees. The inactivity fee is also low, charged only after a year and if your account balance is under $100. On the other hand, the margin rates are high and the fees for wire withdrawals are high.

How we ranked fees

We ranked SogoTrade's fee levels as low, average or high based on how they compare to those of all reviewed brokers.

To get things rolling, let's go over some lingo related to broker fees. What you need to keep an eye on are trading fees, and non-trading fees.

• Trading fees occur when you trade. These can be commissions, spreads, financing rates and conversion fees.
• Non-trading fees include charges not directly related to trading, like withdrawal fees or inactivity fees.

In the sections below, you will find the most relevant fees of SogoTrade for each asset class. For example, in the case of stock investing the most important fees are commissions.

We also compared SogoTrade's fees with those of two similar brokers we selected, Tradestation and Interactive Brokers. This selection is based on objective factors such as products offered, client profile, fee structure, etc. See a more detailed rundown of SogoTrade alternatives.

To have a clear overview of SogoTrade, let's start with the trading fees.

SogoTrade trading fees

SogoTrade trading fees are low. The fee structure is transparent and you can easily calculate costs.

Stock fees and ETF fees

SogoTrade has generally low stock and ETF commissions. The stock fee is fixed at SogoTrade, while TradeStation and Interactive Brokers have per share fee structures. Because of this fixed fee, SogoTrade can be better than TradeStation and Interactive Brokers if you trade less frequently but bigger ticket sizes.

US brokers have very recently changed to commission-free stock and ETF trading so it is to be seen if SogoTrade will also follow along. If they do not, their fee structures will be much more expensive than their competitor's offerings. 

SogoTrade charges lower commissions if you trade frequently or buy the so-called "Pre-Paid Packages". You can see in this table the different commission levels:

*The Pre-Paid Trading technically means that you buy lower commissions in advance. E.g. if you buy the 50 trade package for $144 price you get 50 trades for $2.88 commission. The packages expire after 1 year, so you have to use the 20/50 trade packages within 1 year.

If you prefer stock trading on margin or short sale, you should check SogoTrade financing rates.

A financing rate, or margin rate, is charged when you trade on margin or short a stock. This basically means that you borrow money or stocks from your broker to trade. For this borrowed money/stock you have to pay interest. This is the financing rate. It can be a significant proportion of your trading costs.

SogoTrade's financing rates are high.

SogoTrade's financing rate is volume-tiered. It applies a base rate and premium or discount depending on the financed amount. The base rate is set by its discretion, at the time of the SogoTrade review the base rate was 7.25%.

Options fees

SogoTrade options fees are average. They are right in between Tradestation and Interactive Brokers. 

The options fees contain a base rate which is a fixed fee and a $0.5 per contract fee. The base rate can be lower if you trade frequently or buy the Pre-Paid Packages.

*Similarly to stocks, the Pre-Paid Trading means that you buy lower commissions in advance.

Crypto fees

SogoTrade has started offering its clients crypto trading cryptocurrency trading through a partnership with Apex Crypto. It's available only for US clients, and not all US states.

The fees for crypto trading: 1% of trade value with a minimum of $1.

Non-trading fees

SogoTrade has average non-trading fees. There is no account and deposit fee. It doesn't charge withdrawal fee for ACH too.

However, there is an inactivity fee and a high wire withdrawal fee. 

The inactivity fee is $50 per year if your trading account balance is under $100 and you don't trade for 12 months.

SogoTrade's wire withdrawal fee is $25 for US citizens and $50 for non-US citizens.

Opening an account at SogoTrade is fast and fully digital for both US and international citizens, but it sorely lacks user-friendliness.

Can you open an account?

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SogoTrade is a US broker, but clients from all over the world can open an account.

There are ~120 countries where clients can't open accounts. Just to mention a few: Canada, Indonesia, Russia, etc.

What is the minimum deposit at SogoTrade?

The required SogoTrade minimum deposit is $0. This makes it ideal to invest smaller amounts, but be careful because they will charge you an inactivity fee for having a balance below $100 as mentioned above.

Account types

SogoTrade has 7 types of accounts:

In this review, we tested the Individual Account.

How to open your account

The account opening is fully digital and fast. It took 1 day for us. This is not usual for US brokers, e.g. the account opening at Interactive Brokers took much longer. Although it was not as user-friendly as other brokers' account opening process.

At first, you have to go through a 5-step registration process which takes roughly 20 minutes. During this registration, you have to provide some personal information and there are trading experience questions.

At the end of this process, you have to verify your identity and residency by uploading a scan of the following documents:

• ID or passport for identity check
• Bank statement or utility bill for proof of residency

You can transfer money only by bank transfer and non-US clients are charged $50, while US clients are charged $25 for wire withdrawals. As a plus, the deposit and the ACH withdrawals are free.

Account base currencies

At SogoTrade, you can only open USD accounts. This lags behind competitors' selections.

Why does this matter? For two reasons. If you fund your trading account in the same currency as your bank account or you trade assets in the same currency as your trading account base currency, you don't have to pay a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. Revolut or Transferwise both offer bank accounts in several currencies with great currency exchange rates as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Compare digital banks

Deposit fees and options

SogoTrade charges no deposit fees but it only accepts bank transfers. This is similar to SogoTrade's competitors.

If you are from the US, you can also use

• ACH (automated clearing house) initiated at your bank/at SogoTrade
• Check deposit
• ACAT (account transfer)

You can only deposit money from bank accounts which are under your name. A bank transfer can take several business days, while payment with a credit/debit card would be instant.

SogoTrade withdrawal fees and options

SogoTrade doesn't charge ACH withdrawals. However, check withdrawals have a $5 fee, while wire withdrawals are quite costly: $25 in the US and $50 outside the US. 

If you are outside the US, you can use only wire transfer. For US clients, the check, ACH, and ACAT withdrawal methods are also available.

How long does it take to withdraw money from SogoTrade? We tested the bank transfer withdrawal and it took 3 business days.

How do you withdraw money from SogoTrade?

• Log in to the account management
• Go to the 'Funds/Account Transfer'
• Select 'Transfer Cash'
• Select the withdrawal method
• Add the amount you wish to withdraw
• Initiate the withdrawal

Compare to other brokers

SogoTrade's web trading platform is user-friendly, has a good search function, and offers a variety of order types. However, it's not customizable, it doesn't look particularly nice, and doesn't have two-step authentication.

SogoTrade offers multiple web trading platforms which they brand as SogoTrader, SogoOnline, and SogoOptions.

In this review, we reviewed SogoOptions because it looked the most feature-rich. Beyond English, it's available in simplified and traditional Chinese. Despite its name, it offers stocks as well as options. 

Look and feel

The SogoOptions web trading platform is user-friendly. You will easily get around even if you are a beginner.

On the flip side, the web trading platform is not customizable.

Login and security

SogoTrade provides only a one-step authentication.

However, when you login, you have to add a 4 to 6 digits PIN number. This serves as an additional security layer on top of the regular user ID + password combination.

Search functions

The search functions work as you would expect. When you start typing the asset's ticker or name, a list of the relevant results appear.

Placing orders

You can use a lot of order types:

• Market
• Limit
• Stop
• Stop Limit
• Trail Stop / Stop Limit

To get a better understanding of these terms, read this overview of order types.

There are also two order time limits you can use:

• Good 'til canceled (GTC)
• Good 'til end of the day (GTD)

Alerts and notifications

You can't set up price alerts and you don't get any notification of the executed order on the web trading platform.

Portfolio and fee reports

SogoTrade has a clear portfolio report but lacks a clear fee report. The fee report would help you to see how much costs you paid to the broker.

The portfolio report is available on the 'Account Overview' page and not within the trading platform.

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The SogoApp is user-friendly packed with helpful user instructions. It offers a variety of order types and price alerts as well. On the negative side, it doesn't have a secure two-step authentication.

SogoTrade's mobile trading platform, called SogoApp is available on iOS and Android. In this review, we tested it on both.

It's only available language is English. 

Look and feel

SogoTrade's mobile trading platform is user-friendly. At the first usage, it provides a useful walkthrough of the main functions like orders and price alerts.

Login and security

It is the same as on the web trading platform.

The biometric authentication is also missing. It would make the login easier.

Search functions

The search functions are good. They work as you would expect and give good search suggestions.

Placing orders

You can use the same order types and order time limits as on the web trading platform. 

Alerts and notifications

Contrary to the web trading platform you can set price alerts on the SogoApp mobile platform.

Visit mobile platform page

The SogoTrade desktop trading platform has a lot to improve. The platform is not user-friendly, has a poor search function, and lacks a clear fee report.

SogoTrade offers a desktop trading platform, the SogoElite. It is available only for Windows.

The desktop trading platform is available in English and Russian.

Look and feel

The SogoTrade desktop trading platform is not user-friendly. The functions are not intuitive at all. For example, if you want to see an asset's chart, you have to first open the chart feature and then type the asset's symbol in the search field.

As a plus, the desktop trading platform is highly customizable.

Login and security

SogoTrade's desktop trading platform has only a one-step login. A two-step login would be more secure.

Search functions

The search functions are poor. In contrast to the web trading platform, you can search only if you type the assets' ticker, and not their names.

Placing orders

You can use the following order types:

• Market
• Limit
• Stop-loss
• Stop limit

There are also two order time limits you can use:

• Good 'til canceled (GTC)
• Good 'til end of the day (GTD)

Alerts and notifications

Similarly to the SogoTrade web trading platform, you can't set alerts and notifications on the desktop trading platform.

Portfolio and fee reports

SogoTrade doesn't have a clear portfolio and fee reports.

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At SogoTrade, you can trade with US stocks, ETFs, options, and cryptos. However, the offered assets cover only the US market and popular asset classes, such as bonds or mutual funds, are not provided.

Usually, we benchmark brokers by comparing how many markets a broker cover. We couldn't figure out how many exchanges SogoTrade covers. If you are planning to trade with really small US stocks or options, it is best to contact their customer support first. 

Cryptos

Cryptocurrencies are offered through a partnership with Apex Crypto. You can trade four cryptos: Bitcoin, Bitcoin Cash, Ethereum and Litecoin.

At the time of the review, cryptos were available only for US clients and all states, except these:  Alabama, Florida, Hawaii, New York, North Carolina, Rhode Island, Vermont

SogoTrade's research tools are great. You can use many research tools, including detailed fundamental data and good quality trading ideas. On the other hand, charting tools are not very user-friendly.

You can find research tools both on the web and the desktop trading platform. Except for charting, we tested research tools on the web trading platform.

The research tools can be found in the 'Research & Ideas' section. Similarly to the web trading platform, they are available only in English.

Trading ideas

You can read recommendations in the reports provided by ValueEngine and in the Morning Call newsletter provided by Trading Central.

When you select the ValueEngine reports, you can find reports for specific assets, like Apple and for sectors, like Construction. These reports cover a very detailed analysis and recommendations based on fundamentals.

The Morning Call newsletters include technical analysis-based recommendations for a few selected stocks.

Fundamental data

You can find fundamental data in the reports provided by ValueEngine. These reports cover fundamental data, like company valuation, financial statements, EPS, P/E, etc.

Besides ValueEngine, you can access fundamental data if you log into your web Account and search the asset's ticker in the search box. These fundamental data include growth rates, various legal filings (i.e. SEC filings, 10-K reports), comparison charts and a general company profile.

Charting

We tested the charting tools on SogoElite, the desktop trading platform as it seemed better than other platforms' charting tools.

SogoTrade charting tools could use a lot of improvement. It was hard to edit the charts, e.g. we didn't find how we can delete a trendline. Furthermore, there are only 56 technical indicators which might be enough but this amount is lower than what you'll find at some competitors.

News feed

The news has great quality, it is easily readable. It is provided by Comtex, a third-party news provider.  You can find the news when you search for a specific asset.

Other research tools you will enjoy

The Stock Screener is a tool where you can filter stocks. There are endless filters you can use. From the technical indicators to the company profile, you will find everything. 

SogoTrader offers a handy tool dubbed as Asset Management. Resembling robo-advisors, it suggests a portfolio to start your investment with based on your investment experience, risk tolerance level, and investment goal.

Lastly, SogoPlay is a great research tool for options trading. You have to select a specific option, add trading scenarios, like the market will go up and your trading preferences, like the preferred investment amount. After, the tool shows the expected profit/loss balance, trading costs, and other useful information.

Compare research pros and cons

SogoTrade has great customer support. You can reach out to them in many ways and the customer service gives fast and relevant answers. Although, they do not offer 24/7 support.

You can contact SogoTrade via:

• live chat
• telephone
• email

SogoTrade phone support was fast and we got relevant answers. There is also a toll-free Skype line.

On email, we also received quick and relevant answers.

The live chat gives a relevant answer. However, it is hard to reach out to them. It is because of that the live chat is available during the working hours in the US.

Unfortunately, they do not offer 24/7 customer service. They are available from Monday to Friday, between 7:00 to 20:00 ET. 

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SogoTrade's education section can be improved. The content is hard to navigate and a demo account is not offered. As a plus, a wide range of topics is covered.

Finding SogoTrade's education materials is not a piece of cake. You can find them if you go to the footer of SogoTrade's website. Then, click on the 'Education Center'.

 They offer a lot of educational articles in topics ranging from investing basics through trading and stock selection to options and margin trading. The options related materials are provided by The Options Industry Council. On the flipside,

• some of the materials are not available anymore
• the blog section is very outdated (the last post was published back in 2017)
• the sections are hard to navigate.

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SogoTrade is regulated by top-tier US regulators SEC and FINRA. You are also protected by a high investor protection amount, $500,000 which includes $250,000 for cash. On the flip side, negative balance protection is not provided.

Is SogoTrade regulated?

Yes, it is regulated by the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). It's also a member of the Securities Investor Protection Corporation (SIPC).

SogoTrade is based in USA and was founded in 1986.

Is SogoTrade safe?

To be certain, we highly advise that you check two facts:

• how you are protected if something goes wrong
• what the background of the broker is

How you are protected

This is important for you because the investor protection amounts can be different depending on your country of origin. With SogoTrade this is not an issue though as all customers are covered by one US legal entity.

The SIPC investor protection protects against the loss of cash and securities in case the broker goes bust. The limit of SIPC protection is $500,000, which includes a $250,000 limit for cash. A non-U.S. citizen with SogoTrade is treated by the SIPC the same as a US resident in case something goes wrong. The provided amount is a substantially higher amount than most European investor protection schemes. 

On top of these accounts are covered with additional insurance up to an aggregate limit of $150 million. The aggregate limit means that this additional insurance covers all SogoTrade accounts and not just yours.

Not all investments are protected by SIPC. In general, SIPC covers notes, stocks, bonds, mutual funds and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

SogoTrade does not provide negative balance protection.

Background

SogoTrade was established in 1986. The longer track record a broker has, the more proof we have that it has successfully survived previous financial crises.

Sogotrade providing financial statements, and being regulated by a top-tier regulator are all great signs for SogoTrade's safety.

Find your safe broker

SogoTrade is a great broker for US stock and options trading.

The stock and ETF fees are low. You can use a wide range of research tools, including a wide range of analytical tools. Lastly, it also has great customer support which gives fast and relevant answers.

On the negative side, SogoTrade charges $50 per year inactivity fee and high wire withdrawal fees, $50 for non-US clients and $25 for US clients. The product offer is limited, you can trade only with stock, ETF, and options. The desktop trading platform can be improved as it is not user-friendly-structured and misses essential tools, like price alerts.

As the account opening is seamless, and the trading fees are low, feel free to try it.

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