justTRADE Review & Rating 2022 » Is justTRADE Reliable or Scam?
Is justTrade a safe platform? What are the advantages and disadvantages of this German broker? If you are wondering is justTrade good, AtoZ Markets has researched for you and summarized justTrade broker review for 2022.
It's going to be an unbiased review. AtoZ Markets is not responsible for Any opinion given by the writer.
justTrade Review: Company Overview
More and more new online brokers are offering their services on the German market. One of them is justTrade, a German company based in Frankfurt am Main, which was only launched in October 2019. The founders of the FinTech startup, Michael Bußhaus and Ralf Oetting, are proud of more than 20 years of experience in setting up and managing online banks and finance portals. The team is complemented by IT and marketing specialists. If you want to trade with justTrade, you have to open a deposit and a clearing account. Both are managed by the Sutor Bank, which is based in Hamburg and has been active since 1921.
There are already some new online brokers in Germany, which are known as low cost brokers due to their low costs. Custody accounts are free of charge with all of these brokers. The role model for the FinTech startup justTrade is the Californian FinTech company Robinhood, which offers free trading in securities.
With its concept, justTrade appeals to those who want to build a portfolio themselves and take control of their investments. The operators are of the opinion that free securities trading should be possible for everyone.
Pros And Cons Of justTrade
According to justTRADE experiences on the net, the majority of users are happy with their choice of broker. However, the company from Frankfurt am Main does not get away without criticism. What do investors appreciate and what do they criticize?
- Uncomplicated registration: download the app, enter data, verify via video chat. Opening a securities account at justTrade is so easy. Many users find the registration process pleasant and are enthusiastic about the speed of the process. Only a few users complain about longer waiting times at peak times.
- Free order: A trade with justTrade costs 0 euros. This makes justTrade one of the few brokers that enables securities to be traded free of charge. A tempting offer.
- Clear app: organized and not too cluttered. This is how users describe the interface of the justTrade trading app. Investors can invest their money with just a few clicks. There are no stumbling blocks on the way.
- Fast customer support: If a problem should arise while trading, according to many investors this can be resolved quickly with customer service. This gives a feeling of security when trading.
- Large selection: In addition to around 9,500 stocks and ETFs, justTrade also offers a large number of warrants and leverage products. The versatility of the offer is very popular with users.
- Integrated trading in cryptocurrencies: Users who invest in both stocks and cryptocurrencies are happy about the double offer. In addition to stocks, justTrade also offers twelve crypto currencies for trading. Trading in Bitcoin and Co. is also possible for 0 euros.
- No savings plans: Investors who like to regularly invest in ETFs have to do this manually at Justtrade. A savings plan function is currently not available. Thus, this broker is rather unsuitable for passive investors.
- High minimum order: The free order fee has a catch. When buying securities, users must wager at least EUR 500. Many find this limit too high and would like to invest small amounts.
- Fees on the clearing account: The broker charges a negative interest rate of 0.5 percent on the clearing account for custody account management. Investors who have an average of EUR 10,000 ready for trading pay a fee of EUR 50 at the end of the year. The majority of users agree, however, as billing per trade would be more important.
Is justTrade Trustworthy?
With justTrade you can rely on security. This is also rated positively in the test. The broker works together with the Sutor Bank, which manages your deposit and your clearing account. The Sutor Bank grants a deposit protection of 100,000 euros per customer. Up to this amount, your deposits are at least safe if the bank should go bankrupt. The Sutor Bank is also part of the voluntary deposit protection fund of German banks. This means that the deposit protection per customer and account has been expanded to up to 1.3 million euros.
Security when placing orders is guaranteed with two-factor authentication (2FA). If you place the order via the app, you can log in with TouchID or FaceID. The login is protected by justTRADE by a 2FA via SMS - both in the desktop version and in the app. If you find 2-factor authentication too time-consuming, you can deactivate it via the app or web trading. If there is no activity in the app for an hour, the app blocks itself automatically. The user can unlock it conveniently via TouchID or FaceID.
This offers additional security in mobile trading.
justTrade Review: Trading Platforms
justTRADE offers different order types, web trading and a justTRADE app for iPhone and Android. Currently only single depots can be opened. There are no community or minors' depots. The trading center and partner determine the order type. The choices are:
- Market order for the sale
- Once Cancels Other (OCO) for sale
- Trailing Stop Loss
Regardless of whether investors use Mac, Linux or Windows - investors can access web trading with all browsers . The web-based trading platform is specifically geared towards active users and offers access to around 7,300 stocks, 1,100 ETCs and ETFs as well as over 500,000 warrants, certificates and leverage products. All prices are displayed in real time with push quality.
Accounts of justTrade
According to our justTRADE review, the management of the depot is free of charge. The account can be opened directly on the home page. The deposit and the clearing account are kept at the Sutor Bank in Hamburg. However, it is still taking a long time to open a custody account , as users receive an invitation to open a custody account within three days of registering on the website. However, this should change soon and the opening of the deposit account should only take a few minutes. The verification of the account should then be done via video.
In our justTRADE review, we found that the deposit account is currently still opened by email. Interested parties will receive all further information after an informal e-mail to [email protected] At the moment, only individual custody accounts can be opened by customers residing in Germany and having German citizenship.
The transfer of an already existing account to justTRADE is currently not yet possible due to the complex tasks involved. However, justTRADE's custody accounts can be transferred to other banks free of charge. This procedure is not to be seen as a justTRADE scam, but is probably due to the fact that the provider has only been on the market for a short time.
justTrade was actually the first German broker to offer trading in securities and crypto currencies. justTRADE offers clients the opportunities to trade cryptos around the clock, even on weekends. For cryptos, the minimum spread is 0.3% and the minimum order volume is 50 euros. An order commission is not charged. justTRADE offers trading in the following five cryptocurrencies:
- Bitcoin Cash
A wallet is not necessary because the cryptos are stored at the von der Heydt bank in Germany.
Fees and Commissions
The cost and conditions of trading with justTRADE are special. For example, if you want to invest in justTRADE ETF shares, you can only do so with a single deposit . When trading an asset, the minimum volume is EUR 500. So if you want to create your own savings plan, you have to invest a minimum of 500 euros over and over again. The maximum order volume is 50,000 euros.
Then securities account transfers: They are complex and costly. However, the provider wants to offer traders trading without fees, which is why it is currently not possible to transfer a deposit from another bank to justTRADE. It works the other way round. Anyone who wants to terminate their custody account with justTRADE or transfer it to another bank can do so free of charge, but only without a change of creditor.
This platform advertises that investors can trade over 500,000 assets free of charge and there are no hidden justTRADE costs. That's right, because the broker does not charge any trading venue fees, order commissions, lump sums for third-party costs, exchange fees or the like. Trading is possible for EUR 0.00 per order.
This is possible thanks to reimbursements that justTRADE receives from the trading venues. This is probably also the reason for the high minimum order volume of 500 euros. JustTRADE does not charge any fees for custody account management and the clearing account, unless the balance is in the red. No order fees are charged when trading cryptos.
- When trading in cryptocurrencies, only the spread is charged, for which 0.3% is to be paid when buying and selling . The minimum order volume for cryptos is 50 euros.
- If the clearing account is overdrawn, annual interest of 9% will apply.
- In addition, justTRADE charges an annual fee of 0.5% if there is money in the clearing account that is not invested. This does not apply to amounts up to a maximum of ten euros.
- Even those who want to cancel warrants, need duplicates of documents or use the ticket service to attend general meetings, must expect fees.
Users can call up a price list on the platform's website, which transparently shows all costs.
Is Securities Trading with justTRADE Free of Charge?
Securities trading for EUR 0.00 per order and without any deposit fees is possible thanks to reimbursements that justTRADE receives from the trading venues. This is probably also the reason for the high minimum order volume of 500 euros.
In addition, advanced IT systems and completely digitized processes favor free trading in financial instruments.
Customer service also plays a role in our justTRADE review. There may be almost only positive justTrade opinions when it comes to assessing customer service.
On the justTRADE website, however, we could not find any indication of classic customer service in our justTRADE test. At first glance, a button for live chat is missing, as is a telephone number or an email address. However, on the justTRADE website there is an FAQ area in the menu item Service, where some frequently asked questions on the topics of deposit opening, offers, crypto trading, taxes and general are compiled.
Moreover, an email address is provided to open an account and responses via email are only given on working days. However, this worked well in our justTrade broker review; as our inquiries were answered within an hour.
In addition, the broker can be reached on their social media channels like:
We were unable to get a picture of their response time in our justTRADE review. We assume, however, that the broker will improve over time and that there is no justTRADE scam.
justTrade Review: Regulation
Is justTRADE safe? justTRADE offers trading with modern security procedures such as mobile and session TAN. As a German private bank, the Sutor Bank naturally also adheres to deposit protection , which is required by law.
Due to the membership in the deposit protection fund of the Bundesverband deutscher Bank eV, deposits are secured in addition to the statutory deposit protection of 100,000 euros up to a maximum amount of 1.3 million euros per investor. This is for the security of customer funds in the unlikely event of bankruptcy.
Is justTRADE legit? Although this broker does not have a banking license, bankruptcy has the Sutor Bank as its partner bank, which is regulated by the German financial supervisory authority BaFin and has to comply with strict regulations of the German state.
Should you choose justTrade broker? Even if there is no justTrade phone support, there may be a few points that clearly ensure that positive justTrade opinions can be given here. It starts with the fact that justTrade is safe - as there are no justTrade scam reports.
As a result, there are the very fair justTrade fees and the low justTrade costs that arise when you use the provider. Furthermore, there are no justTrade reviews that deal with the fact that hidden costs such as fees are used here. This means that as a trader, you can place full trust in the broker here.
So if you want to work with stocks, digital currencies or certificates such as ETFs, this is the right place for you.