Published by Blain Reinkensmeyer
On Thursday, December 31st, 2015
Just2Trade offers heavily discounted trades with little catches, but suffers across the board to get there, cutting corners whenever possible and delivering a poor overall client experience not worth the cost savings.
Low-cost commissions structure.
Poor email support; basic site design; clear corner-cutting on tools and research implementation; leaves clients wanting more.
IMPORTANT NOTICE: As of April 11, 2013 Just2Trade has been issued a temporary cease-and-desist order from FINRA. Learn more.
NOTE: Just2Trade elected not to participate in our 2015 Online Broker Review. As a result, the below review copy is from the 2014 Review that was published on February 18th, 2014.
On the surface, it is easy to understand what Just2Trade is trying to accomplish: being the dream broker. The homepage claims Just2Trade offers everything from first-class research to great support, premier education and award-winning discounted trading.
Unfortunately, looks are deceiving. While Just2Trade does offer cheap trades, everything else about the client experience suffers, and in the end, clients are better off investing elsewhere.
Commissions & Fees
Starting off with the one bright spot of Just2Trade's value proposition, its commission structure is straight-forward, easy-to-understand and contains few catches. All equities trades, mutual funds trades, bonds trades and even broker-assisted trades are just $2.50. Option trades run just $2.50 plus $.50 per contract, while exercising and assignments are $20 per.
For the casual investor, this is attractive after all, TD Ameritrade, ETRADE, Scottrade and other big name brokers charge at least $7 per trade, not to mention much higher costs for options trades. It works for investors who desire nothing more than a basic trade ticket to place orders with. Beyond this, TradeKing and OptionsHouse both offer commissions for less than $5, too, and are more compelling.
Lastly, for seasoned active traders, there is one critical flaw in Just2Trade's offering that should not be overlooked. Just2Trade, like the majority of online brokers, receives payment for order flow, keeping all the market rebates for themselves instead of kicking them back to the client. Active trading brokers such as Lightspeed, Interactive Brokers and Cobra Trading pass this rebate back to their clients, not to mention have far superior executions, and thus are a better deal.
Platforms, Tools, and Research
Just2Trade does not offer a conventional platform. There is no software to download onto the desktop, nor is there a traditional Java-based program to run in the browser. Instead, Just2Trade's platform is simply their website.
Along with ShareBuilder and Firstrade, Just2Trade was in the bottom three for total points earned this year in the Platforms & Tools category of our 2013 Broker Review. There is not much to get excited about, beyond the bare-bone basics every investor expects to find.
Research, like tools, is also disappointing. In 2013, Just2Trade parted ways with Morningstar, which is one of the premier research providers available on the web, as their primary research provider clearly, a cost-saving effort. They replaced them with InvestCenter, where depth of research is nearly non-existent and the UI is poor, to say the least. In fact, despite there being a section for mutual funds, we could not pull up one fund, instead receiving errors each time.
Just2Trade's website design is outdated and very basic in design. Depending on the browser utilized to access the site, misaligned text and other small nuances can be seen, reflecting the lack of extra capital to invest in site design due to ultra low-commissions.
Just2Trade used to offer technical analysis education through Recognia, but in late 2012 they ended their contract, as the content was underutilized. With Recognia out of the picture, the broker (as of this review) does not offer any investor education.
Lastly, the broker does not currently offer any apps for mobile trading.
Just2Trade paints the picture on its homepage as everything a self-directed investor could want, but in reality, they fall well short of their goal.
The main challenge for a broker like Just2Trade is delivering a well-rounded client experience with so little capital to work with. Because of its heavily discounted rates, Just2Trade is not able to provide some of the most basic features, not to mention a decent website.
In the end, Just2Trade's strategy seems clever on paper, but is poor in practice.
The content portion of this Review was completed on February 16th, 2014.
Blain has been involved in the markets for over 13 years, heading StockBrokers.com equity broker research and reviews. His personal blog, StockTrader.com, provides to-the-point daily market recaps to over 17,000 subscribers.
Just2Trade commissions structure details below:
Stock Trades - $2.50 when using the Just2Trade Platform. Supports most trade types (market, limit, stop, trailing, contingent). There is an additional charge of $.003 per share for extended hours trading. For stocks priced less than $1.00, add $0.003 per share for the entire order (maximum commission per order not to exceed $5.50, applicable only to new accounts opened after November 12, 2013).
Options Trades - $2.50 + $.50 per contract. There is a $20 fee for each exercise or assignment.
Mutual Funds - Several thousand mutual funds are supported with over 2,900 being no load funds.
International Trading - International Trading not currently offered.
Retirement Accounts - Just2Trade charges $35 per year for IRAs which waived for accounts with over $25,000 in assets. A $75 fee is charged to close.
Other Investments - Just2Trade does not support futures and forex.
All pricing data was obtained from a published web site as of 5/01/2015 and is believed to be accurate, but is not guaranteed. The StockBrokers.com staff is constantly working with its online broker representatives to obtain the latest pricing data. If you believe any data listed above is inaccurate, please contact us using the link at the top of this page. For stock trade rates, advertised pricing is for a standard order size of 500 shares of stock priced at $30 per share. For options orders, an options regulatory fee per contract may apply.