SogoTrade Pricing and Minimum Deposit
| Investments | Commissions |
|---|---|
| Stocks and ETFs | $0 for limit orders, $2.88 for market orders |
| Stocks and ETFs broker assisted | $25 |
| Options | $0.50 per contract |
| Options broker assisted | $25 + $0.50 per contract |
| Options exercise/assignment | $15 |
| Investments | stocks, options, cryptocurrencies, ETFs |
| Sogotrade minimum deposit to open account | $0 cash account, $2,000 margin account |
Overview of SogoTrade
SogoTrade may not be the most well-known brokerage firm, but it offers a strong selection of trading and investment options with a unique commission structure that's worth checking out.
SogoTrade Pros
Paid to trade: Customers can earn money for making trades.
Multiple software platforms: This includes an API for institutional clients.
Asset management: Advisory accounts are available.
SogoTrade Cons
Not always commission-free: Some stock trades come with commissions.
Limited customer service: There are no physical branches and no 24/7 support.
Excessive fees: There are charges for IRAs, options, and other services in certain situations.
SogoTrade Investment Services
SogoTrade offers both self-directed and advisory accounts, with a broad range of tradable assets:
- Equities
- Funds (exchange-traded and closed-end)
- Option contracts
- Cryptocurrencies
SogoTrade provides cryptocurrency trading through Apex. However, many investment options such as precious metals, futures, forex, bonds, mutual funds, and foreign assets are not available.
SogoTrade offers a variety of account types, including individual, joint, custodial, business, estate, retirement, trust, education, and institutional accounts, some of which offer tax advantages. Non-US citizens can open some accounts without a Social Security Number, thanks to SogoTrade’s extensive foreign account services. Account applications must be completed in either Chinese or English.
SogoTrade customers receive a free EvoShare membership, which provides cash back into their SogoTrade account without any annual or monthly fees.
Opening an Account
The online application for SogoTrade is quick and user-friendly. However, approval is not immediate and may take several days, during which time access to the broker's website is not available.
For a US account, we needed to provide three documents: proof of residency, Social Security card, and another government-issued ID, like a driver's license. This adds to the bureaucratic process and the time it takes to open the account. Our account was opened in less than 6 hours, but it took 11 days to enable ACH transfers, and only one bank could be connected during the first 90 days.
Both Americans and non-Americans start by clicking the "open an account" button on SogoTrade's website. Non-Americans need to provide digital copies of documents like a passport, visa, and proof of residency.
Options, margin, and cryptocurrency trading can be added to a single account application. A managed account is opened through the Power Portfolio section on the online portal.
Customer Service
SogoTrade's customer service is available during weekdays. They are closed on weekends. The service hours are from 7:00 am to 8:00 pm, New York time. We tried calling both their local and toll-free numbers during these hours but received no response.
A live chat option is available on the website during business hours. We received a response through this channel, making it a reliable way to get help. There is also an email form on the Contact page.
SogoTrade also caters to Chinese-speaking customers. The call center employs Chinese-speaking agents and operates during the same hours mentioned above. The website can be displayed in Chinese, and phone numbers are available for clients in China, Taiwan, and Hong Kong, with the Hong Kong office open 24/5.
SogoTrade Asset Management
SogoTrade offers a robust investment advisory service. It combines software algorithms with human advisors to manage ETF portfolios. The service includes two options: one that follows market indexes and another that seeks to outperform them.
Each account is paired with a human advisor, available for in-person or virtual consultations. The company has two branch locations for in-person visits. The standard robo-advisor questionnaire is brief, asking only six questions, which is a notable limitation.
The managed account program also offers an enhanced option with additional services like tax-loss harvesting and retirement planning.
SogoTrade Self-Directed Pricing
SogoTrade has revised its commission schedule to lower trading costs. There are no recurring fees for taxable accounts and an annual $25 fee for IRAs. Closing an IRA costs $75.
Trading fees have also been adjusted. Limit orders are commission-free if they involve at least 100 shares or are worth at least $2,000. Otherwise, the commission is $2.88.
Limit orders can also earn rebates of $1 for every 1,000 shares traded. There are conditions, such as the order not executing immediately and only during regular trading hours. Market orders and trades in OTC or penny stocks have a commission of $2.88, with additional surcharges for penny stocks.
Options trading has no base commission but a 50¢ per-contract fee. Assignments and exercises cost $15. Cryptocurrency trades are charged 1% of the trade value with a minimum of $1.
Additional charges include a $25 fee for phone trades and $10 for a paper tax document.
Asset Management Fees and Minimums
The advisory accounts do not charge commissions, but they do have other costs. The minimum investment is $1,000 for the index-tracking program and $25,000 for the performance-based program.
The management fee is 0.75% annually, billed monthly. The minimum fee is $5 per month, which can be a significant percentage for small accounts. The enhanced advisory program has negotiable additional fees, capped at 0.75% annually.
SogoTrade Margin Rates
Upgrading to a margin account on SogoTrade is straightforward, and it's also easy to revert to a cash account. The interest rates on borrowed funds start at 14.5% and decrease to 9.75% for balances over $1 million.
The trading platforms display the margin requirements for different trades and show the buying power available in a margin account.
SogoOnline
SogoOnline is a basic browser-based trading platform. It is suitable for submitting stock and options orders but lacks advanced features.
The stock tab offers six order types including stop and trailing stop limit. It also allows for short selling.
SogoTrader
SogoTrader is an improvement over SogoOnline. It allows for graphical analysis but lacks comprehensive tools. The only available chart types are line and candlestick.
It includes a simple order ticket with options for day and GTD (good till date) orders.
SogoOptions
SogoOptions is an advanced platform for trading options. It includes tools like Greek values, profit-loss diagrams, integrated spreads, a custom order builder, and a probability calculator.
You can filter integrated spreads by market outlook (bullish, bearish, neutral, or volatility). Examples include bull put ladder spread, long straddle, and covered call. The platform provides a P/L diagram and a detailed description for each strategy.
Orders can be placed by clicking on a bid or ask price on the options chain.
During testing, some tabs did not load on Google Chrome during market hours, a clear downside. Switching to Microsoft Edge resolved the issue.
SogoElite
SogoElite is primarily for charting and managing watchlists. Despite its name, it lacks trading capabilities. To use it, your account must be funded and enrolled for real-time quotes, which incurs a fee.
Mobile App
The SogoTrade mobile app works on both Apple and Android devices. It offers basic charting options and allows horizontal rotation of graphs.
While you can manage calls and puts chains, there are no integrated trading strategies. Custom multi-leg trades are possible.
The same order ticket from the website is used here, with a special order type for earning rebates on trades.
The app has a watchlist that doesn't sync with the website and allows for setting alerts on securities. However, it lacks features like video news and mobile check deposit.
Supplementary Services
Initial Public Offerings: IPO trading is not available.
Extended Hours: SogoTrade offers trading from 7:00 am to 9:25 am and from the close of the market until 7:00 pm EST. Phone orders are not accepted during these times.
Individual Retirement Accounts: Roth, SEP, and Traditional retirement accounts are available for U.S. citizens and permanent residents.
Fractional-share Trading: Only whole shares of stocks and ETFs can be traded. Cryptocurrencies can be traded in fractions.
DRIP Service: Dividends can be reinvested into additional shares within a SogoTrade account (requests must be sent to services@sogotrade.com).
Recurring Mutual Fund Purchases: Not available. Mutual funds are not offered.
Recommendations
Individual Retirement Accounts: With multiple IRA fees, we cannot recommend SogoTrade. Charles Schwab offers more IRA options without fees.
Mutual Fund Investors: Firstrade provides thousands of funds without transaction fees.
Beginners: Starting with a robo account at SogoTrade Asset Management is a good option.
Active Stock and ETF Trading: SogoTrade's platforms are not the most advanced. Webull offers better platforms and supports fractional-share trading.
Long-Term Investors and Retirement Savers: Charles Schwab offers a range of lifecycle mutual funds and annuities, individual 401k plans, branch locations, IRA calculators, and much more.
Small Accounts: SogoTrade has no minimum for self-directed trading. For robo investing, consider Webull, which requires only a $100 minimum.
SogoTrade Review Summary
SogoTrade offers a solid investment advisory service, but its self-directed options need improvement, especially the software. The paid-to-trade program is interesting, and its foreign account service is a unique offering.
Updated on 7/19/2024.
About the Author
Chad Morris is a financial writer with more than 20 years experience as both an English teacher and an avid trader. When he isn’t writing expert content for Brokerage-Review.com, Chad can usually be found managing his portfolio or building a new home computer.
