There are a couple of incredible things to take away from the information I gathered. The first is everything is done in house and done well. The second is they are no frills and that is why they maintain the cheapest commissions at $2.50 each.
At $2.50 a Trade – There’s a Catch Right?
When I was first emailed by Just2Trade about the possibility for an interview my first question was going to be, “$2.50, yeah right, what are we giving up by paying such a small amount?” The reality is, nothing.
What I learned from our interview was that Just2Trade is responsible for everything they do in house. Nothing is outsourced. Fuad admitted from a technical standpoint this was very difficult and expensive for the company when they first started out but has paid dividends over the years and helped maintain that awesome low commission of $2.50.
The other benefit of having everything taken care of in house is that any issues or problems with IT, customer service, or even the rare occurrence of a trading error are all taken care of quicker and more efficiently.
What a Trading Account Looks like and What you Need to Open one
An account at Just2Trade has the basic layout and feel of just about anything you’ve experienced so far with one exception, everything is stripped down and bare bones easy to navigate. Some brokers can make me really upset because they throw so many different charts, models, metrics etc. in my way. What’s worse is being hit with large amounts of offers to join their premium programs. You get none of that with Just2Trade. Everything is simple and easy to use.
You will also see a lack of educational material or investing ideas and guides in your trading platform. This is purposeful. For many years, these materials were considered an added value but today they are so common place that a search on Yahoo or Google will tell you everything you need and more. Why should Just2Trade spend money trying to educate you on what you already know? After all, it helps keep your commissions lower.
Fuad reaffirmed with me that the website is correct in that you must have a $2,500.00 account minimum for any type of account you open with them. Although I recommend this brokerage for beginners or young investors that minimum can be daunting. Fuad also stated that generally speaking Just2Trade is intended for intermediate and experienced investors who are comfortable with a trading platform and know what they are in for.
How Come I’ve Never Heard of them Before?
In some circles Just2Trade might be completely unknown but for many users it has been the hallmark of simple, reliable and affordable trades since 2007. After speaking with Fuad I was informed that Just2Trade hardly ever relies on traditional advertising like brokerages TradeKing, ScottTrade or TD Ameritrade. This is due in large part to the costs involved in running everything in house. When you sacrifice quality of IT and outsource customer service you do end up with more to spend on advertising.
The other reason that you may not have heard of Just2Trade is that they rely largely on word of mouth from trader to trader. If you are new to trading or investing this is probably why you have never heard of them as they do cater to an experienced audience of traders and professional individual investors.
Pros and Cons
Pros:
- Commission rate at $2.50 a trade and an additional fee of $0.50 per options contract.
- You have real-time level 1 and level 2 quotes
- Less clutter as a result of the bare bones trading platform
- Everything is handled in house so you are far more likely to have success with customer service or have problems corrected quickly
Cons:
- Minimum Balance of $2,500.00 at all times
- Opening, Closing and annual fees for IRA accounts
- Extended hours trading requires an additional fee
- Few tools for beginners
Final Thoughts
Just2Trade is a great brokerage service, one I am happy to have had the chance to review and interview. Just because the commissions are incredibly cheap does not mean it is for you though. Consider the minimum balances and the lack of research tools on the platform. This is done purposely so that they are only catering to serious traders. This service is intended for traders who are trading large volume or frequently and benefit from the lower commission. They assume you already know how to read charts.