SogoTrade is a deep discount online broker whose goal is to provide rock-bottom commissions for its customers, while still providing competitive industry tools.
Is SogoTrade the ultimate value broker or does its heavily discounted trades leave too little investment to achieve perfection in the eyes of customers? This review will uncover the answer.
Commissions & Fees
SogoTrade charges $5 for all stock trades placed during regular market hours. For clients who make over 149 trades per quarter, the rate is reduced to $3 a trade. Alternatively, SogoTrade allows its customers to prepay for trades at a discounted $4 per trade rate (minimum 20 trades purchase; trades expire after one year).
At the $5 base charge, SogoTrade is right in line with discount competitors OptionsHouse and TradeKing, which both charge $4.95 per trade. However, there is one major caveat for stock trades, and that is SogoTrade charges for after-hours trades: base rate + $.005 per share. Charging for post-market hours trades is nearly non-existent across the industry, and for good reason; they are a terrible customer experience.
Options trades are more clean-cut, a flat $5.00 + $.50 per contract. No gimmicks. SogoTrades’ options commission structure is most similar to OptionsHouse, which charges $4.95 + $.50 per contract.
For mutual fund trades, SogoTrade charges $25, which is more than its discount competitors. The real drawback though is that SogoTrade does not accept web orders. All mutual fund trades must be executed via phone, which is certainly inconvenient for customers.
After breaking down SogoTrades’ full commission schedule, including margin rates, and comparing it to the rest of the industry, SogoTrade finishes with a very respectable fifth place.
|SogoTrade||OptionsHouse||TradeKing||Lightspeed Trading||Interactive Brokers|
|Stock Trade Fee (flat)||$5.00||$4.95||$4.95||$4.50||N/A|
|Options Base Fee||$5.00||$4.95||$4.95||$0.00||$0.00|
|Options Per Contract Fee||$0.50||$0.50||$0.65||$0.60||$0.70|
|Broker Assisted Trades Fee||$25.00||$25.00||$20.00||$25.00||$30.00|
|Commissions & Fees|
Before testing SogoTrade’s customer service for our 2016 Review, we didn’t know what to expect. With such steep trade commissions, we were very curious to see how SogoTrade would stack up.
For phone support, SogoTrade delivered with extremely quick pickup times. Only one time did we have a hold period of between 1 – 2 minutes, with every test seeing a pickup in less than 60 seconds. Once connected, reps were pretty well trained. Each said their name, greeted us warmly, answered all of our questions, and closed the call with a pleasant closer.
Positives aside, we found that less than half the time, phone support reps neglected to offer us contact information if we had further questions, and only half the reps asked if we had any more questions. We frequently ended up getting the same support reps, and overall our testers left feeling that the experience was “good” / borderline “ok.” All data tallied, SogoTrade finished ninth.
Phone support aside, email and live chat were also mixed bags. With email support, responses always came in less than one business day. Live chat connection times were less than one minute over half the time; however, once we had to wait nearly 20 minutes before finally being connected. SogoTrade finished seventh for email and tenth for live chat. See: Best Brokers for Customer Service.
Platforms & Tools
When it comes to trading platforms and tools, SogoTrade has its high points and low points. When I first started using the broker, I was quickly confused by all the different platforms available to me. To provide clarity – there are five platforms in total – I will break them down individually:
- SogoOnline – Essentially a basic order entry page on the website. Place to make basic stock and option trades as well as review order statuses.
- SogoTrader – This is SogoTrade’s basic web-based stock-trading platform. Streaming real-time quotes, basic charting, watch lists, and order entry can all be found here.
- SogoOptions – For options traders, SogoOption is the primary “go to” web-based platform. Functionality is widespread and the platform is well put together.
- SogoElite – SogoTrade’s desktop platform. Built for advanced and active traders. The platform is a licensed version of ActiveTick, with numerous bells and whistles for stock trading.
- SogoPlay – The newest platform to be added, SogoPlay is a licensed version of OptionsPlay, which uses technical and fundamental analysis to populate and score different option trade ideas.
Having numerous different platforms is confusing in itself, but naming them all similar names only makes the situation worse. Once you get past the names and confusion of which platform is which, the good news is that you can pretty quickly identify which platform is right for you. SogoOnline and SogoTrader are good for basic to intermediate investors, while SogoOptions and SogoElite will feel right at home for advanced options and equity traders. Lastly, the SogoPlay platform is really more a research tool than a trading platform. That said, SogoPlay’s user-friendly interface and clean ratings are easy to like for any style of trader.
All the platforms are made available to all clients at no additional cost, which is a nice plus for customers. The one exception is SogoElite, which requires a $100,000 minimum portfolio balance for access.
Each platform has its advantages and disadvantages. For example, I appreciate SogoTrader’s simplicity and ease of use; however, the charting is way too basic, even for a newer investor. SogoOptions does a good job in providing casual and advanced options traders the tools they need to succeed: streaming options chains with all the greeks viewable, basic and advanced probability analysis, and clean profit & loss charts. The downside to SogoOptions is its outdated interface. The list goes on for each platform.
When all 52 variables we score for Platforms & Tools are factored in, SogoTrade is unfortunately, on the whole, pretty weak. SogoTrade scored 59%, which places the broker well in the bottom half of the industry. That said, compared to other discount brokers, SogoTrade is somewhere in the middle, better than Firstrade and Capital One Investing, but worse than TradeKing, OptionsHouse, and Lightspeed. See: Best Brokers for Platforms & Tools.
Like most other discount brokers, SogoTrade offers its customers little to no fundamental research. While customers can perform bare-bones basic research on stocks (balance sheets, income statements, SEC filings) and ETFs (fund descriptions, expense ratios, top 10 holdings), research for mutual funds, pink sheet equities, and fixed income are non-existent. Compared to other discount brokers, SogoTrade falls far behind. See: Best Brokers for Research.
If there’s one plus in SogoTrade’s research offering, it’s the SogoForecaster tool, which includes both stock and ETF screening, analysis, and ratings. The tool has a variety of different pages for users to browse through, but I found the depth and underlying value to be minimal beyond the basic screening capabilities.
And like SogoTrade’s research offering, Mobile Trading is a similar, non-existent experience. SogoTrade only offers a basic iOS iPhone app and Android app, with no support for tablets of any variety. Using the smartphone app, customers can view streaming real-time quotes and watch lists as well as option chains and very basic charts. For trading, only simple stock and single-leg option trades can be made. See: Best Brokers for Mobile Trading.
SogoTrade’s website is fairly straightforward to navigate, thanks to the clean primary header menu; however, the design is outdated. Font size, buttons, borders, boxes, etc. all flow cohesively together but clearly need a fresh design. In terms of usability, none of the trade platforms feel similar to one another. I also found it annoying to have to input my pin every time I logged into my account (something few brokers require, or if they do, it’s an optional feature).
SogoTrade presents itself as a deep discount broker with great tools that will satisfy active traders and casual investors alike. While SogoTrade does provide customers with a strong diversity of platforms and competitive commission rates, there are noticeable holes throughout its offering.
SogoTrade’s website is outdated, and conducting research alongside trading on the go is a poor experience at best. Even its commission structure comes with tricky gimmicks designed to prey on unknowing customers; for example, charging for after-hours trades. If I were going to use SogoTrade for either stocks or options trading, I’d choose options.
For the investor who can accept these drawbacks in return for discounted trades, SogoTrade could perhaps be a decent fit. SogoTrade’s customer service is responsive and the diversity of platforms does have advantages, as we explored earlier. Make no mistake though, discounted trades come with a price.
Reviewed by Blain Reinkensmeyer Blain heads research at StockBrokers.com and has been involved in the markets since placing his first stock trade back in 2001. He developed StockBrokers.com's annual review format six years ago which is respected by broker executives as the most thorough in the industry. Currently maintaining funded accounts with more than a dozen different US regulated online brokers, he's executed thousands of trades through his career and enjoys sharing his experiences through his personal blog, StockTrader.com.
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Commissions & Fees
SogoTrade full commissions schedule breakdown below. Note, SogoTrade does charge an account inactivity fee which they call a "Low equity fee". The fee, "$50 annual charged if total account equity drops below $100 (waived if at least 1 trade executed in previous 12 month period)"
Stock Trades - All market and limit order stock trades are $5 per trade up to 100,000 shares. Make over 149 trades per quarter and the rate is reduced to $3 per trade. Alternatively, trades can be prepaid for $4 each with a minimum purchase of 20 trades (trades are good for one year). Broker assisted trades are $25.
SogoTrade is one of the few brokers that still charges for pre and post hours trading. The rate is Base Rate + $.005/share.
For stocks priced under $1.00 ($100 minimum investment), add the greater of $0.0003 / share (10% of principal max) OR 1/4% principal. Penny Stocks (OTCBB and Pink Sheets) may incur additional transaction fees based on DTC charges. These charges can be substantial, so they may be blocked from online trading. In this case, please contact the Trade Desk for more information.
Options Trades - Options trades cost $5.00 plus $.50 per contract. Spreads are only charged a single base rate. Any exercise or assignment costs $15. For broker assisted trades, add $25.
Mutual Funds - Mutual funds trading is not supported for web trades. Instead all orders must be placed via broker assisted (ie phone).
Other Investments - SogoTrade does not currently offer futures, bonds, or forex trading.
Trade Commissions Breakdown
|Stock Trade Fee (flat)*||$5.00|
|Stock Trade Fee (per share)*||N/A|
|Options Base Fee*||$5.00|
|Options Per Contract Fee*||$0.50|
|Options Exercise Fee||$15.00|
|Options Assignment Fee||$15.00|
|Mutual Fund Trade Fee||$25.00|
|Broker Assisted Trades Fee||$25.00|
|$25,000.00 to 49,999.99||8.00%|
|$50,000.00 to $99,999.99||7.00%|
|$100,000.00 to $249,999.99||5.75%|
|$250,000.00 to $499,999.99||5.25%|
|$500,000.00 to $999,999.99||4.75%|
|Bond Trade Fee||N/A|
|Treasury Trade Fee||N/A|
|IRA Annual Fee||$35.00|
|IRA Closure Fee||$60.00|
|Returned ACH Fee||$30.00|
|Returned Wire Fee||$30.00|
|Stock Certificate Processing Fee||N/A|
|Stock Certificate Delivery Fee||N/A|
|Paper Statement Fee||$10.00|
|Paper Confirmation Fee||$5.00|
|Domestic Wire Fee||$25.00|
|International Wire Fee||$50.00|
Offering of Investments
|Advisor Services help||No|
|Bonds (Corporate) help||No|
|Bonds (Municipal) help||No|
|Bonds (US Treasury) help||No|
|Clearing Firm help||Apex|
|Commission Free ETFs help||0|
|Direct Market Routing - Stocks help||No|
|Direct Market Routing - Options help||No|
|# of Easy to Borrow Stocks help||4170|
|Forex Trading help||No|
|Futures Trading help||No|
|Member FINRA help||Yes|
|Member SIPC help||Yes|
|Mutual Funds help||Yes|
|Mutual Funds (Load) help||7584|
|Mutual Funds (No Load) help||4642|
|Mutual Funds (NTF) help||340|
|Mutual Funds (Total) help||12222|
|Mutual Funds Phone Trades help||Yes|
|Mutual Funds Web Trades help||No|
|No Fee IRAs help||No|
|No Inactivity Fees help||No|
|No Minimum Deposit help||No|
|Options Exercising (Phone) help||Yes|
|Options Exercising (Web) help||No|
|Options Trading help||Yes|
|Options Trading (Mini) help||No|
|Options Trading (Weekly) help||Yes|
|OTCBB / Pink Sheets help||Yes|
|Stock Trading help||Yes|
|Phone Support help||Yes|
|Email Support help||Yes|
|Live Chat (Current Clients) help||Yes|
|24/7 Support help||No|
Platforms & Tools
|Desktop Platform (Windows) help||Yes|
|Desktop Platform (Mac) help||No|
|Web Platform help||Yes|
|Active Trading Platform help||SogoElite|
|Auto Investing help||No|
|Charting - Display Corporate Events help||No|
|Charting - Drawing Tools help||12|
|Charting - Notes help||No|
|Heat Mapping help||Yes|
|Ladder Trading help||No|
|Level 2 Quotes - Stocks help||No|
|Level 2 Quotes - Options help||No|
|Option Chains - Streaming Real-time help||Yes|
|Option Analysis - P&L Charts help||Yes|
|Stock Alerts Delivery - Email help||No|
|Stock Alerts Delivery - Sound help||No|
|Stock Alerts Delivery - Text SMS help||No|
|Streaming Time & Sales help||Yes|
|Streaming TV help||No|
|Trade Hot Keys help||No|
|Virtual Trading help||Yes|
|Watch Lists - Streaming Real-time Quotes help||Yes|
|Research - ETFs help||Yes|
|Research - Mutual Funds help||No|
|Research - Pink Sheets / OTCBB help||No|
|Research - Fixed Income help||No|
|Equity Research - Research Reports help||0|
|ETF Research - Top 10 Holdings help||Yes|
|ETF Research - Morningstar Style Box help||No|
|ETF Research - Research Reports help||No|
|Mutual Fund Research - Research Reports help||No|
|Mutual Fund Research - Fees Breakdown help||No|
|Mutual Fund Research - Performance Analysis help||No|
|Mutual Fund Research - Top 10 Holdings help||No|
|Screener - Stocks help||Yes|
|Screener - ETFs help||Yes|
|Screener - Mutual Funds help||No|
|Screener - Options help||No|
|Screener - Bonds help||No|
|Has Education - Stocks help||Yes|
|Has Education - ETFs help||No|
|Has Education - Options help||Yes|
|Has Education - Mutual Funds help||No|
|Has Education - Fixed Income help||No|
|Has Education - Retirement help||No|
|Investor Dictionary help||Yes|
|Client Webinars help||No|
|Live Seminars help||No|
|Retirement Calculator help||No|
|Community Forums help||No|
|iPhone App help||Yes|
|iPad App help||No|
|Apple Watch App help||No|
|Android App help||Yes|
|Android Tablet App help||No|
|Mobile Site help||Yes|
|Quotes (Real-time) help||Yes|
|Quotes (Streaming Real-time) help||Yes|
|Watch List Syncing help||No|
|Market Movers (Top Gainers) help||No|
|Stock Alerts Delivery - Push Notifications help||No|
|Customizable Homescreen help||No|
|Stream Live TV help||No|
|Trading - Stocks help||Yes|
|Trading - After-Hours help||Yes|
|Trading - Simple Options help||Yes|
|Trading - Complex Options help||No|
|Member FDIC help||No|
|Checking Accounts help||No|
|Savings Accounts help||No|
|Debit Cards help||No|
|Credit Cards help||No|
|Mortgage Loans help||No|
|Mobile Check Deposit help||No|
|ATM Fee Reimbursement help||No|
|No Fee Banking help||No|
|Retail Locations help||0|
|Receives Payment for Order Flow (Equities) help||Yes|
|Client Liquidity Rebates help||No|
|Financial Information Forum (FIF) Participant help||No|