Fri. Jan 28th, 2022

Gatsby Review

  • Ease of use
  • Price
  • Social trade
  • Technical analysis
  • Customer service

Summary

Trading without commissions is a popular option that many stock traders choose to use. Gatsby is a platform for ETFs, options and commissions without commissions. This app is designed for new options traders with the goal of making entry into the world of options trading convenient and easy. Gatsby includes simple graphing and analysis tools, integrated social sharing, and a unique rewards program that allows you to earn points for every transaction you can exchange for credit or gift cards. Does this commission-free trading platform sound like you? Before you dive in, read our full Gatsby review now.

Trading options without commissions was first started by Robinhood, but since then dozens of other brokers have entered this popular space. One of the latest apps to be launched is Gatsby, a commission-free stock, options and ETF platform that offers a unique rewards program for options traders. Gatsby specifically caters to new options traders with simple analysis tools and a streamlined trading interface.

In our Gatsby review, we’ll take a closer look at this business app to help you decide if it’s right for you.

Gatsby home page

Gatsby pricing options

Gatsby is a commission-free brokerage application with no monthly account commissions. In particular, Gatsby does not charge contract fees, which makes it cheaper than many other brokers without commissions for trading options.

You will need to make a minimum deposit of $ 10 via ACH transfer to open an account.

Gatsby functions

Resources and account types

Gatsby offers quotes on most stocks listed on the U.S. stock exchange, as well as hundreds of ETFs and stock options. Options trading is limited to long and long call positions, so there is no way to open a multi-category trade. The brokerage only offers standard investment accounts, not retirement accounts. At this time there is no option to trade with margin.

Gatsby stock list

Trading options

Gatsby’s most innovative feature is its focus on options trading. The app is designed to make options trading as simple as possible and is specifically targeted at traders who are new to options trading.

The Gatsby interface offers the current price and offers you several attention price options. For each combination of strike prices and expiration date, the app displays a simple risk indicator that has three levels from “Low” to “High”. Because all positions are calls or simple calls, Gatsby does not include more complex loss and gain charts.

Gatsby Options Order Entry

Graphic and technical analysis

Like other commercial applications, Gatsby has little technical power. The app only includes line price charts and does not support candlestick charts or technical indicators. Gatsby also does not present data on trading volume or the basic fundamentals of the shares. There is a built-in news feed on each stock page, but the app does not have a global feed to monitor market headlines. So for the most part, the app lets you do your own research elsewhere.

Gatsby stock trading page

Social trade

Gatsby’s main source of information comes from its integrated social commerce network. You can connect social platforms like Facebook and Twitter to your account and then follow friends who also use the Gatsby app. You will see a feed of all the trades performed by people you follow, who can offer you ideas for stock exchanges you want to trade. Users may like trades, but the app doesn’t allow you to comment or send messages.

Gatsby's social feed

Rewards program

A unique aspect of Gatsby is its rewards program for options traders. Each time you perform an options operation, you will receive points (usually one point per operation). Once you reach 500 points, you can change them to get a credit in your account or a prepaid gift card.

Please note that you only get rewards for option trades, not for stocks or ETFs.

Customization and layout of Gatsby

The Gatsby app is available for iOS and Android devices. At this time, the broker does not have a web trading platform.

The app is very easy to use and has a surprisingly sparse design. Instead of being bombarded with graphics and pricing information, you simply see a feed of trades that you or your friends have made. You can see your account balance and purchasing power at the top of the screen along with your current rewards balance.

On the trading pages, you will see a line chart at the top half of the screen and a transaction feed about that stock at the bottom half of the screen. The graphic has simple “Buy” and “Buy Calls” buttons, which you can tap to open a new order screen.

Once on the order screen, simply swipe from side to side to select a contract expiration date and attention price. Then swipe up to open a trade.

Support

Gatsby only offers email support, but you can get a 24/7 response. The broker’s website also has a FAQ page that includes a handful of troubleshooting articles.

Gatsby platform differentiators

The most important thing that differentiates Gatsby from similar commercial applications like Robinhood is that it is designed primarily for options trading. The process of entering Gatsby orders for options trades is incredibly simple and it is worth noting that options trading is the default when you land on a stock trading page.

Another thing that helps Gatsby stand out is that it is one of the few really free brokerage apps for options trading. There are no commissions, no contractual commissions or commissions on account. Many full-service brokers who recently announced trading options without commissions, such as Charles Schwab, still charge contractual commissions.

Gatsby’s rewards program for options trading is also unique. The broker does not specify how much their rewards are worth, so it’s hard to know how really impressive this program is. That said, if you plan to change options anyway, getting a bonus along the way is a plus.

For what type of trader is Gatsby the best?

Gatsby is best for new options traders who want to facilitate options trading rather than immersing themselves in in-depth analysis. The most common form of information in the app is the social feed, which makes it easier to generate business ideas based on what your friends buy and sell. The lack of technical charts and options risk analysis tools can also be an advantage for traders who find these features overwhelming.

That said, traders who want to practice careful trading or want to access detailed search tools will not appreciate Gatsby. The platform offers almost no analytical tools for trading options other than a simple risk indicator. It also only allows for long, long-term call operations rather than more complex multilateral options strategies that allow for a greater degree of risk management.

Pros

  • Stock exchanges, options and ETFs without commissions
  • At least $ 10 to open an account
  • Rewards program for frequent options traders
  • Follow your friends and see what they come up with
  • Simple and easy to use mobile application
  • Email support 24 hours a day, 7 days a week

Cons

  • There are no multi-option trading operations
  • Very few tools for risk analysis

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